© CCPR 2005

The Organisation of Sport & Recreation in the UK

CHAPTER NINETEEN
FINANCE & FUNDING FOR UK SPORT & RECREATION

GOVERNMENT SPENDING

On 25th July 2000, the Secretary of State for the Department of Culture, Media & Sport announced the three year Government spending plan for sport. Announcing the plan, the Secretary of State said:

"I have listened carefully to the powerful arguments of Trevor Brooking and his team at Sport England, together with UK Sport and the Central Council of Physical Recreation"

An outline breakdown of the funds shows:    

·     School Sport Co-ordinators: The Government intends to double the investment in the programme of school sports co-ordinators that has recently been launched by Sport England. The programme is initially funded by £60 million of Lottery money (half from Sport England and half from the New Opportunities Fund)

·         Governing Bodies of Sport: Funds will be made available to enhance and modernise the work of many governing bodies of particular sports.

·         Sportsmatch: Additional funds will be made available for the Sportsmatch Scheme

·         UK Sports Institute: An additional £4 million per annum for revenue costs.

·         European Development funds

·         Space for Sport & the Arts

UK sport at all levels - national governing and representative bodies of sport, sports clubs, the disabled and individuals - is helped from a wide range of sources:

·         Public funds - national and local, including the probability of tax and rating relief
·         Trusts and Foundations
·         Sponsorship
·         Self help: fundraising; members' subscriptions

Direct Exchequer Funding

In the last comprehensive spending review the allocation by Government for the Arts increased by £55 million (28%). This increase alone was more than the entire annual sports budget from central Government. Arts spending represents £4.21 per head of population. The CCPR called upon Government to set a minimum target of £2 per head of population for the Home Countries with an agreed percentage to be ring fenced to support governing bodies.

Sport England (SE)

Sport England provides funds of over £5 million annually for helping English governing bodies of sport with grants for their administration and development which is related to agreed plans.

Not all sports are recognised by SE and not all national governing bodies are recognised, and these do not receive financial help. The criterion for grant aid is based upon support for Sport England's plans for increasing opportunities for all, and for improving standards and taking into account financial need and meeting a racial equality commitment.

Additionally, SE grant aid national organisations such as the Commonwealth Games Council for England, the English Disabled Sports organisations and Sports Coach UK (National Coaching Foundation) is also the avenue through which contractual funding for the Central Council of Physical Recreation is provided.

Sport England also has the responsibility for distributing (within Government guidelines as for all Home Countries) National Lottery funds in England.

Sport Scotland (SS)

Scottish national governing bodies, which have agreed plans for supporting Sport 21 can be considered for grants for agreed administration and development plans at the Scottish level.

SS is also responsible for the distribution of National Lottery funds.

Sports Council for Wales

The Council provides funds for Welsh governing bodies of sport to help them archive agreed programmes for administration and development.

The Council also, through its Elite Cymru scheme, grant aids some individuals having outstanding potential and who are supported by their governing bodies.

The Council is responsible for the distribution of National Lottery funds through Sportlot.

Sports Council for Northern Ireland

The Council, through a number of objectives, provides grants for Northern Ireland governing bodies and approved individuals. They are also responsible for distributing National Lottery funds in Northern Ireland.

National Lottery - 'Lotto'

The National Lottery, set up in 1993, is the largest grant aiding body for sport in the UK. Under the National Lottery Act 1993 there were five areas which were included for consideration, a special Millenium fund and:
·         Sports
·         Arts
·         Charities
·         Heritage

subsequently under the National Lottery Act of 1998 a sixth good cause for education, health and the environment (New Opportunities Fund) was introduced. The New Opportunities Fund is setting up a regional network so as to ensure that funds are targeted at areas most in need. One of the major benefits seen from the National Lottery help for athletes was the UK success at Sydney 2000.

Following Sydney 2000 the Secretary of State, DCMS said that he believed that the national governing bodies of sport would be better than Sport England at deciding where the money should go. The Minister, however, worried that some organisations do not have detailed knowledge of who is playing their sport and where. This also highlights the need for each national governing body to have lines of communication from top to bottom, national down to grass-roots level.

Over the coming years Lottery money for sport will be divided into two core funds:

·         A Community Projects Fund for local projects everyone can access
·         A World Class Fund targeted at producing the medal-winners of tomorrow.

This approach is designed to be simple and easy to understand. Both funds contain elements of capital and revenue and complement Sport England's many other programmes.

DCMS has published its Decision Document on National Lottery funding. The Government is committed to merging the New Opportunities Fund and the Communities Fund to create a new body known as 'The Big Lottery' responsible for half of all the Lottery money going to the 'good causes'. The Government has also confirmed that it will set up a Young People's Fund with a budget of £100 million for projects promoting youth inclusion, mainly through after-school and holiday schemes and facilities. As mentioned above, the Government is also committed to changing the Lottery legislation to permit the setting-up of an Olympic Fund.

You can obtain further details and a copy of the full Sport England Lottery Fund Strategy by contacting the Lottery Line on 08457 649649.

The Community Projects Fund contains three elements:

·         Small Projects awards (grants of up to f5,000) will support organisations such as schools and voluntary groups for capital and short-term revenue schemes. Priority will be given to areas of deprivation and disadvantaged groups. Funding will be allocated to regions according to their population and relative economic deprivation. Decisions will be made locally. In 1999 and 2000 this funding was distributed via the 'Awards for All' cross-distributor programme. For an application pack for current funding call 0845 600 20 40.

·         Capital awards (grants of over £5,000)will support community provision for all. They are aimed at increasing participation in sport. Priority will be given to areas of deprivation - through the Priority Areas Initiative and Sports Action Zones - and schemes benefiting young people, including the School Community Sport Initiative. For more details and an application pack call 08457 649649.

·         Revenue awards (grants of over £5,000) will help further to tackle social exclusion in sport.

They will increasingly be working in partnership with local authorities, governing bodies, the voluntary sector and the New Opportunities Fund. Their proposals include Active Schools Co-ordinators, a Priority Groups Revenue Fund and Active Sports projects for young people who can progress given adequate support. Revenue awards over £5,000 will be coming on-stream in late 1999 and 2000. For further details call 08457 649649

The World Class Fund, often delivered in partnership with the UK Sports Council (UK Sport), assists in the achievement of international sporting success. It includes:

·         The UK Sports Institute (UKSI) and supporting English Network
·         Capital support for specialist national facilities other than on UKSI sites
·         Revenue support through the World Class programmes of Start, Potential and Performance, with funding for support services and individuals as they progress from young talent to elite performer 
·         A World Class Events programme to provide support to bring significant international competitions to this country.

World Class funding is available only for recognised national governing bodies of sport or capital projects identified in World Class Performance and governing body facility plans.

Foundation for Sport & the Arts (FSA)

The FSA is a discretionary Trust, funded by the Football Pools Companies through their tax relief agreed by government. The current level of funding is less than £10 million per annum, a sum which has greatly decreased from a much higher level since the effect of the National Lottery. With very rare exceptions, the maximum grant now available is £75,000.

The trustees are concerned to identify worthy projects in sound hands and put money into them. The Foundation aims to encourage initiative, enterprise and creativity, however, in the main community participation and 'grass-roots' are features of those schemes which are given priority.

The role of the Foundation covers the whole of the UK. Initial enquiries are welcome by telephone and further information can be obtained subsequently by writing to:

Secretary to the Trustees
Foundation for Sports and the Arts
P.O. Box 20
Liverpool
LI3 1HB
Tel: 0151 259 5505
Tel: 0151 230 0664

National Governing Bodies of Sport (NGBs)

Although the main role of national governing bodies of sport is to administer and develop their sports, there are a few which have their own grant aid or loan schemes for both organisations and individuals.

In 2000 the net income from the Wimbledon Championships was £31.36 million. All of the income generated by the Championships is ploughed back into the development of the game. There is a network of Community Tennis Partnerships, linking clubs, schools and local authorities. The Lawn Tennis Association employs 45 County Development Officers throughout Great Britain who work to offer opportunities for playing the game at local level.

The Wavell Wakefield Trust funds the employment of 54 Youth Development Officers and the Rugby Football Union is a major contributor to the Charity. The YDOs have coached around 250,000 young people in 2000. Mini Rugby is promoted in clubs affiliated to the Rugby Football Union with over 10,000 mini teams playing regularly. Since the 1991 Rugby World Cup, Tag Rugby has proved to be very successful within Primary Education with 10,000 schools now participating.

The Football Foundation was set up by the Football Association, The F.A. Premier League, Government and Sport England to deliver a multi-million pound investment programme for football's grass roots. In 2001 The Football Association invested £32 million in grass roots projects, including a £20 million contribution to the Football Foundation. The money will be used to improve grass-roots facilities and raise standards of coaching and administration in schools and clubs.       

The F.A. Premier League has committed 5% of its new television deal (estimated at some £20 million) to grass-roots football through the Football Foundation. In addition, the F.A. Premier League has committed funding to a wide range of community initiatives and youth development projects including the community programme in Professional football, Kick it Out anti-racism campaign, the Prince's Trust and Study Support Centres.

Sports Trusts and Foundations

There are several grant-making Trusts and Foundations which help sport. It is usual for Trusts to be registered charities, although there are exceptions such as the FSA, Trusts usually provide funding which can be for revenue (rent, rates, salaries, etc) or for capital (buildings, etc).

There are about 28 Trusts which give grants to specific sports which include several activities:

Examples are:
·         The Cricket Foundation
·         The Lord Taverners Ltd.
·         The English Bowling Association
·         The Golf Foundation
·         The English Hockey Association
·         The Lawn Tennis Association
·         The Ron Pickering Memorial Fund (Athletics)

The Football Foundation - a Registered Charity - is, for the first time in England (also Jersey, Guernsey and the Isle of Man), a single strategy with one combined pot of money to deliver substantial investment into improving facilities. This will include help for the grass-roots of the game by delivering a new generation of modern football facilities in parks, local leagues and schools throughout the country. Funding will be targeted on community and education initiatives, including support centres, community coaching schemes and social inclusion projects. The Foundation will fund further improvements to safety and amenities of football grounds, including new and improved family, community and disabled facilities. The first projects included: in London five overgrown pitches will be opened up again and new facilities will be built at pitches at Egremont in Cumbria where players have to get changed in their cars. The Foundation is a partnership of the FA Premier League, the Football Association, Government and Sport England. In the first year (2000) £20 million was invested, rising to £40-£50 million per annum from the second year.

Chief Executive
The Football Foundation
25 Soho Square
London
W1D 4FF
Tel: 020 7534 4210
Fax: 020 7832 0119
E-mail: enquiries@footballfoundation.org.uk

Although the Football Foundation only applies to England, similar schemes are under consideration for football in the other Home Countries and the relevant Football Association would provide up-to-date information.

BRITISH TENNIS FOUNDATION (BTF)

The BTF is the officially registered tennis charity. They work closely with the Lawn Tennis Association (LTA), the national governing body for the game of Lawn Tennis in Great Britain, and are based at the LTA's head office at:

The Queen's Club
West Kensington
London
Tel: 020 7381 7000
Fax: 020 7381 5965
www.lta.org.uk

Trusts Covering a Range of Sports

There are also Trusts giving funding to general sports and these include:
·         Arsenal Charitable Trust
·         Torch Trophy Trust
·         Colson Trust
·         London Marathon Charitable Trust Ltd
·         National Playing Fields Association

and several others.

Sports Aid (SA)

Sports Aid, previously the Sports Aid Foundation, is a voluntary charitable organisation managed by a Board of Governors and Trustees, all of which are honorary and unpaid. Its primary concern is to obtain and distribute financial help to needy individual young competitors who are preparing for international competitions. The applications must be endorsed by their national governing bodies.

There are regional offices of the SA England and also in Scotland, Wales and Northern Ireland.

SportsAid
3rd Floor Victoria House
Bloomsbury Square

London
WC1B 4SE

Telephone:  (020) 7273 1975
Fax:  (020) 7273 1981
Website: www.sportsaid.org.uk

Central and Regional  Government

There are limited avenues for helping sport throughout the English Regional Bodies which includes regeneration of derelict lands and buildings.

In Scotland there is the Urban Programme (Scotland) and the Highlands & Islands Enterprise, both of which have helped sports projects and organisations.

Local Authorities

Sport is not a statutory obligation for local authorities in England and Wales - although it is in Scotland -  they are a major funding source which currently (2002) is about £1 billion.

The local authority funding and assistance for sport takes several forms:
·         The services - with grants for local clubs - and facilities by the Recreation & Leisure Departments
·         Teams of Sports Development Officers
·         Sports Co-ordinators for school/club links with funds provided by DfES
·         A discretionary role for rate relief for local sports clubs - a scheme which is under reconsideration
·         Capital funds for buildings, equipment, etc
·         Revenue grants
·         Arrangements for joint provision and dual use of facilities
·         Advice for local clubs
·         Some provide a Secretariat for local Sports Councils

Unfortunately the funding by local authorities for sport declined in the 1990s and a Sport England estimate is that this decline was about 7.5%.

Most local authority help for sport is through the District or Metropolitan Councils, although projects having a county or greater than local significance could be considered for funding by the County Council, but there could be an overlap. The two often join together in providing a facility - e.g. a sports centre - for use by both a school and the local community. Although these facilities are publicly owned, the centres are administered by a body which has been successful in Compulsory Competitive Tendering (CCT).

Following the general election in 1997 the new Labour government announced its intention to modernise local government, a cornerstone of which was the introduction of Best Value in local authorities to take over from Compulsory Competitive Tendering.

Setting performance targets, as part of regular service reviews, and reporting achievement publicly against those targets in local performance plans, will be fundamental in demonstrating whether best value is being obtained.

Best Value pilot schemes are currently being conducted in a number of Local Authorities in England. The Department of Transport, Local Government & the Regions - they have the responsibility for local authorities - have information on these schemes on worldwide and local websites: www.detr.gov.uk and www.local,detr.gov.uk/cct

Town and Parish Councils, the tier below District Councils, are consulted for planning applications and often own or care for playing fields and village halls. The Parish (or Town) Council fixes its own rates (within defined limits) and decides its own priorities for spending these small amounts.

A Rural White Paper proposes to give 'quality' Parish Councils government funding set to targets.

PRIVATE SECTOR FUNDING

Sponsorship

The world-wide sponsorship market is forecast to reach $50 billion by 2010, with sport taking two-thirds of the total. Sports expenditure in the UK alone has already passed the £1 billion mark, with no signs of a slow down in growth.

Although major sponsorships are for high profile sports, it is of interest to note that in 1999 one-third of sponsorship was for grass-root level sports.

Deals such as the Vodaphone/Manchester United link show that sports and business are now using sponsorship as a mutually beneficial marketing tool to drive the commercial ambitions of both parties.

In April 2001, in the document TV & Grass Roots: Two Sides of the Same Coin the major spectator sports highlighted their expenditure of £92 million to assist grass-roots level sport. This money is the 5% (or more) contribution promised in accordance with the CCPR Voluntary Code of TV Sports Broadcasting Rights by the signatories that include nine major bodies. Examples of funding for youth development are:

Institute of Sports Sponsorship (ISS)

4th Floor
Warwick House
25-27 Buckingham Palace Road
London
SW1W 0PP
Tel: 020 7233 7747
Fax: 020 7828 7099
www.sports-sponsorship.co.uk

The ISS was founded in 1985 under the Presidency of HRH Prince Phillip. It is the premier national association of business sponsors of sport and its membership also includes sponsorship agents, advisers, consultants and legal representatives.

Whilst its prime aim is to represent the interests of its members, its role in administering the Sportsmatch scheme and its close links with the Central Council of Physical Recreation and Sport England (the English Sports Council) give it a unique position in all forms of sponsorship activity. The ISS is concerned to ensure that business sponsors of sport gain a reasonable return on their investment in sport, but it is equally determined that the integrity of sport should be protected.

The ISS has established close contact with the Department of Culture, Media & Sport, which is responsible for the Government's sports policy and with politicians with sports interests in both the UK and European Parliaments.

The ISS has produced a Code of Practice for its members which it hopes will become standard procedure for all sponsoring companies and has produced a 'model contract' for sports sponsorship agreements. The Institute is a partner in the Sports Dispute Resolution Panel - an arbitration service for contractual disputes in sponsorship.

The aim of the service is to better equip sport and recreation to obtain and develop community sponsorship.

The Sports Sponsorship Opportunities list is compiled by the SSAS in association with Sports Marketing and gives many sports events and activities

Published Expenditure on Sports Sponsorship in the UK  1981-1997

The ISS is associated with the Sports Sponsorship Advisory Service (SSAS) by which the CCPR provides advice and information.

The SSAS is funded by Sport England and is administered jointly by the ISS and the CCPR. The SSAS has revised and printed its very successful step-by-step guide to sponsorship Making Sponsorship a Success with additional information on the impact of the Media. The manual is a guide to sponsorship for the National Governing Bodies of Sport and all other clubs and bodies involved in sports and recreation.

Sports Sponsorship Advisory Service

The CCPR
Francis House
Francis Street
London
SW1P 1DE
Tel: 020 7565 6284
Tel: 020 7630 7046

Sportsmatch £ for £ Scheme

Sportsmatch is a business sponsorship incentive scheme for sport which was launched by Government in 1992. It is associated with, and part of, the ISS. Applicants, with a sponsor, may qualify for a matching pound-for-pound award from £1,000 to a maximum of £50,000 (England). In Scotland these figures are a minimum of £500 with a maximum of £75,000. Wales has a minimum of £500 and a maximum of £15,000. The Sports Councils in Scotland and Wales administer the Sportsmatch Scheme. The SportsMatch Scheme in England, jointly funded by commercial sponsors, has provided £50 million for 2,900 grass-roots projects since 1992. There is no similar scheme in Northern Ireland.

Sportsmatch aims to encourage existing business sponsors of major sporting events to extend their involvement with sport and physical recreation into the grass-roots areas. It also aims to bring businesses into grass-roots sponsorship who have not sponsored sport or physical recreation before. The Scheme does not sponsor individuals or competitions. The Government announced that they will increase SportsMatch funding by £500,00 to £3.7 million for each of the years 2001 and 2002.

Contact:
Sportsmatch Scheme Manager
Institute of Sports Sponsorship
4th Floor
Warwick House
25-27 Buckingham Palace Road
London
SW1W 0PP
Tel: 0207 233 7747
www.sportsmatch.co.uk

WORLD SPONSORSHIP MONITOR

The World Sponsorship Monitors (TWSM), the essential monthly insight into the nature, value and duration of all significant sports sponsorship deals, trends and issues, was re-launched at the Sport Accord conference in Madrid in May. Published by leading sponsorship research company Sports Marketing Services, TWSM has become regarded as an essential reference work by members of the sponsorship community and provides a practical, hard-working tool for brand managers, rights owners and consultancies. Now in its third year TWSM, which is available only on subscription, has been restyled to reflect, and better display, considerably enhanced content. it has been designed to bring the business of sponsorship into sharper focus and present its data in a more accessible and relevant way. For the first time, TWSM will have an online presence.

For further information contact:
Catherine Hawkins
Communicate Sport
Tel: 020 7431 8592
E-mail: Catherine@communicatesport.com

Other Sources of Funding for Sport

Other sources of funding for sport include:

·         Rotary Clubs

·         Round Table

·         Bank/Building Societies

·         Breweries

·         Police Property Act Fund

The use of a minimum of 5% of TV revenue by major spectator sports to fund grass-roots development will be an added help.

European Funding for UK Sport

The European Sport Sector operates from within the Directorate General X of the European Commission. It is responsible for ensuring intra-Commission and inter-institutional co-operation on sports issues and for facilitating co-operation in the sports world.

Contact:
European Commission DGX/B/5
200 Rue de la Loi
B-1049
Brussels
Belgium
Tel: 00 322 295 4600
Fax: 00 322 295 9887

A contact for general enquiries in the UK is provided through a range of networks across the UK. These can be found in local libraries or the website. This is the EC representative in the UK, although they only act as an information centre, and in a very limited way.

Jean Monnet House
8 Storey's Gate
London
SW1P 3AT
Tel: 0207 973 1992
Fax: 0207 973 1900
www.europe.org.uk

EU Regional Funds

Through the Structural Funds the EU supports the development of cultural and tourist-related centres, which often have a sporting element.

Examples include the creation in Manchester of the indoor cycling velodrome, the Meadowlands leisure pool complex and the development of the Nottingham Tennis Centre.

Contact the relevant Integrated Regional Government Office in the UK. Publications produced by the Representation of the European Commission in the United Kingdom can be consulted at www.cec.org.uk

For further and more detailed information on grants for sport in the UK contact:

The Directory of Social Change (DSC)
24 Stephenson Way
London
NW1 2DP
Tel: 0207 209 5151
Fax: 0207 209 5049
E-mail: info@d-s-c.demon.co.uk

The DSC publish the very detailed The Sports Funding Guide by Nicola Eastwood, in association with Sport England. Price £16.95.

The Central Council of Physical Recreation (CCPR) publish Financing & Sponsorship for Clubs & Individuals. Price £5.00.

 

 

 

 

 

Government Spending Review

Direct Government Investment

National Lottery
- Community Projects Fund
- World Class Fund

Foundation for Sport and the Arts


National Governing Bodies of Sport


SportsAid


Sports Trusts and Foundations

- Football Foundation
-
British Tennis Foundation

Central and Regional Government


Local Authorities


Sports Sponsorship


Institute
of Sports
Sponsorship

Sports Sponsorship Advisory Service


Sportsmatch

CCPR acknowledges the work of Ken Gill in preparing this information and Mel Welch for editing and completing the text.

Thanks are extended to the individuals, voluntary and statutory organisations - especially the Sports Councils - who provided information.

Corrections and suggestions for improvements, additions and corrections will be welcomed by the CCPR.