For economic growth and to support healthy, active and ... healthy, active and connected communities in ... 9 Sport Social ... behaviour and crimes Positive impact on well-

Leadership Innovation Integrity Inclusion Collaboration

Investing in Community Sport

For economic growth and to support healthy, active and connected communities in

New South Wales

www.sportnsw.com.au 2

Contents

About Sport NSW ......................................................................................................................................... 3

Impact of Community Sport ......................................................................................................................... 4

Sport Value Proposition ............................................................................................................................... 5

The Economic Contribution ......................................................................................................................... 5

Sport income/expenditure generation .................................................................................................... 6

Reduced health-care costs and improved productivity ........................................................................... 7

The Volunteer Contribution ..................................................................................................................... 8

Elite Sport Contribution ........................................................................................................................... 9

Sport Social Contribution ......................................................................................................................... 9

Sport in regional areas ....................................................................................................................... 10

Sport can enhance cognitive development and educational outcomes ............................................... 11

Challenges that Face Sport and Inhibit Economic Growth in New South Wales ....................................... 12

Core funding for New South Wales state peak sporting organisations lowest in Australia .................. 12

Funding for state sport industry organisation less than half of the same organisations based in other

major states in Australia ........................................................................................................................ 14

The cost of participating in sport is rising .............................................................................................. 15

Involvement in organised sport has declined ........................................................................................ 16

Volunteer participation in sport has declined ....................................................................................... 17

Participation in National Teams has declined ........................................................................................ 18

Barriers to participation need to be addressed further to ensure equity ............................................. 19

Sports facilities are over-used and under-maintained .......................................................................... 20

Key Issues Relating to LGA Facilities .................................................................................................. 20

Addressing the sport facility issues .................................................................................................... 21

Regional sports organisations face exacerbated challenges ................................................................. 21

http://www.sportnsw.com.au/


About Sport NSW NSW Sports Federation Inc. operates under the name Sport NSW and is the active voice and peak

body for sport in NSW. We operate as an independent not-for-profit organisation representing the needs

and concerns of a large number of industry bodies to government, associated statutory authorities,

relevant business and private enterprises and other stakeholders with an interest in promoting sport and

active recreation.

Our Members

State, national and regional sporting organisations

Disability sporting organisations

Regional sports academies

Tertiary and secondary education organisations

Sports enthusiasts

What We Do

Sport NSW recognises that the sports industry faces many challenges and we strive to work closely with

members to enhance the quality of experience for participants and volunteers engaged in sport in NSW.

Sport NSW serves the NSW sporting community through:

Recognition and Networking

Celebrating the achievements of athletes, officials, coaches, volunteers and recognising the contribution to the community through sport.

NSW Sports Awards, Community Sports Volunteer Awards, and Member Networking Events

Knowledge Share Providing opportunities to create and share knowledge as a means to promoting sport and to assist

sporting organisations to build their capability, capacity and optimise the business of sport..

Sport NSW’s research and education role includes supporting state and other sporting organisations in

the development and delivery of quality education and information sharing based on needs of the sector

and in collaboration with the NSW Government and our Members.

Advocacy

Advocating a case for sport to state and local government and

other agencies for and on behalf of the sport sector including participants and volunteers. Sport NSW

represents the sport sector on numerous committees, working groups and councils and responds to

relevant government reviews on behalf of our members

Our Mission

To lead New South Wales sport in building connected, healthy and active communities.

Our Vision

To be the voice of sport

NSW Sports Federation Inc.

6a Figtree Drive, Sydney Olympic Park NSW 2127 PO Box 517, SYDNEY MARKETS NSW 2129

TEL: (02) 8116 9740 FAX: (02) 8732 1613 Email: [email protected]

Cheryl Battaerd, Chief Executive Officer

Ph. (02) 8116 9740 or 0418 456 231 Email: [email protected]

© Published by the NSW Sports Federation Inc. 2015. This work is copyright. Apart from any use as

permitted under the Copyright Act 1968, no part may be reproduced by any process without prior

permission from NSW Sports Federation Inc.

“Promoting better health and social

outcomes for the people of NSW”

Small efficient organisation Large footprint

15,000 clubs and associations 2.5 million participants, workers and volunteers


mailto:[email protected]



Impact of Community Sport

INDIVIDUALS Improved;

Physical literacy, self-esteem, fitness/Health, Self–efficacy, Cognitive function & social ties

CIVIC Social capital; Strong community networks

&social cohesion

Reduction of anti-social behaviour and crimes

Positive impact on well-being and local/national pride through sporting &

event success

ECONOMY

Employment & unpaid volunteer labour, increased

consumption, increased production, increased Gross State Product, & increased

productivity

TOURISM

Economic benefits through events , infrastructure, visitation, expenditure, goodwill & raising the

profile of the region/state

HEALTH Reduced health costs &

contribution to the reduction of;

obesity related illnesses, cardio vascular disease, diabetes,

hypertension leading to stroke, some cancers and a range of

mental illnesses such as depression and dementia



Sport Value Proposition

“Sport has the power to unite people in a way little else can. Sport can create hope. Breaks down racial

barriers … laughs in the face of discrimination … speaks to people in a language they can understand.”

Nelson Mandela

It is widely acknowledged that sport makes a significant contribution to the social psyche of Australia and New South Wales. Historically it has had a deep connection to our lifestyles as participants, volunteers, fans and as community members.

Social capital is a resource available to individuals and communities founded on networks of mutual support, reciprocity and trust. According to the Australian Bureau of Statistics (ABS) the associational nature of sport and sporting clubs is seen as a forum for the creation of social capital by providing opportunities and settings for social interaction, sharing, common interests and enhancing a sense of community.1 The New South Wales government stated that its Vision is ‘of a community that uses sport and recreation to improve its well-being’2

New South Wales’ sporting clubs are central elements in community life and play a key role in facilitating friendships and social networks. As Australia’s leading demographer Bernard Salt said, ‘sport delivers social inclusion and importantly, social resilience. It builds connectivity in society and in its own way, sport can act as a form of ‘social glue’, connecting and binding communities together.’3

What is largely over looked however is that the immense value of sport extends well beyond those derived by the individuals and organisations who provide services and for those who participate in community sports.

The community and broader economy also derives benefits indirectly from the reduction to state health-care costs, improved social/community behaviours, a sense of pride and satisfaction from club, state and national team sporting success as well via economic growth through sport tourism, major sporting events, employment including unpaid volunteer labour, increased consumption, increased production, improved labour productivity and increased gross state product (GSP).

The Economic Contribution

All sport – from a major international event involving professional competitors to the local sport club makes an important contribution to the economy however determining the current contribution of sport to the New South Wales economy is difficult given the last economic impact study was conducted in 19964.

Economic and social impact studies are important in informing the extent and nature of potential government investments. In the case of organised sport, estimation of the economic and social impacts could help inform ongoing decision making in terms of policy and investment.

A number of studies have been undertaken previously in Australia and overseas to quantify the impacts of investments in organised sport and determine the contribution of sport to the respective economies. In preparing this documentation, a number of these studies have been considered and estimates derived from recent reviews such as the ABS Value of Sport5 and ratios established in earlier studies conducted in New South Wales and crossed-checked against standard multipliers and economic data6.

1 ABS 4156.0 Sports and Physical Recreation: A Statistical Overview, Australia, 2012

2 New South Wales Sport and Recreation 2011 3 Bernard Salt, Changing Ethnic mix has implications for women in Australian sport, Sport Business Insider, 8 October 2012. 4 New South Wales Sport and Recreation 1995-96 & National Centre for Culture and Recreation Statistics 5 ABS Value of Sport, 4156.0.55.002, 24/10/2013



The following diagram developed by Frontier Economics7sets out ways in which we can characterise the economic contribution of sport and the main channels through which this contribution takes place.

Social utility refers to the value people place on various goods. These include goods that are purchased and sold (‘private goods’) and ‘public goods’ are ones provided to everyone. The satisfaction Australians get from sports success is a public good.

This diagram depicts the various mechanisms through which sports policy can enhance social utility with the left-hand side associated with sport at the community level and the right-hand side is associated with elite sport programs.

There are a number of ways in which sport delivers to society benefits - in addition to those captured by the people and organisations who provide sport services and participate in sport directly.

Sport income/expenditure generation Sport makes a contribution to the Australian Economy through; direct industry contribution, consumption and contribution via taxation.

Australian households spent an average of $18.94 per week on selected sport and physical recreation products during 2009-10.8 In New South Wales that equates to $142 million expenditure on sport and physical recreation products and services each week resulting in $7.4 billion annual expenditure.

The sport and recreation economic contribution was estimated by the State Chamber of Commerce (NSW) in July 2003 to be close to $4 billion per annum a similar contribution as the mining industry at the time of 2.1% of New South Wales gross state product (GSP)9. If the sport and recreation economic contribution is still at the level of 2.1% of GSP and given the NSW GSP is currently $60,098 per capita - that would approximately equate to a $9 billion contribution from the sport and recreation to the New South Wales economy annually.

6 ABS Australian National Accounts – State Accounts 2013-14, 5220.0 7 The economic contribution of sport to Australia, January 2010, Frontier Economics 8 ABS 4156.0 Sports and Physical Recreation: A Statistical Overview, Australia, 2012

9 Economic Snapshot: Sports Industry in NSW, July 2003 State Chamber of Commerce (NSW)



Reduced health-care costs and improved productivity It is well recognised that Australia faces a monumental challenge with increasing levels of sedentary

lifestyle which is severely impacting on the long term health and wellbeing of the population and the

national and New South Wales economy.

An increasing proportion of Australia's population remain physically inactive, overweight or obese.

Results from the ABS 2011-12 National Health Survey show that 63% of Australians aged 18 years and

over were either overweight or obese. This compares with 61% in 2007-08 and 56% in 1995.10

Physical inactivity is a major contributor to the burden of chronic disease which includes the obesity

related illnesses, cardio vascular disease, diabetes, hypertension leading to stroke, some cancers and

contributes to a range of mental illnesses such as depression and dementia11.

Physical inactivity contributes 6.6% of the overall health burden in Australia and 10% of all deaths. It is

estimated that 5,177 people in NSW die each year due to physical inactivity.

Health costs are escalating to unsustainable levels. The NSW Government reported that in 2012

obesity costs the state $19 billion.12

Participating in sport and regular physical activity at Moderate and Vigorous intensity (MVPA) provides

individuals with a range of positive benefits including health gains in muscle strength, aerobic capacity,

improved mental health, feelings of wellbeing and improved quality of life.

Engaging in regular physical activity, even of moderate intensity, can reduce the risk of developing a range of adverse medical conditions, including cardiovascular disease, colon and breast cancers, Type 2 diabetes, osteoporosis, obesity and injury. Being physically active can also assist in managing stress, depression and anxiety, and in enhancing mental alertness.13

Community level sport promotes regular physical activity within an organised competitive and social environment, with benefits in terms of reduced health-care costs and improved labour productivity. While not a panacea for obesity and illness related to inactivity, Sport is certainly part of the solution.

Research shows that health-care costs could be reduced in Australia, in gross terms by $1.49 billion per year14 equating to approximately $477 million per annum savings on NSW health costs per annum and currently with a third of the population involved in organised sport and recreation equating to a saving of $157 million for New South Wales per annum.

10 Australian Bureau of Statistics 2012 Australian Health Survey: First Results, 2011-12. ABS cat. no. 4364.0.55.001. ABS, Canberra. Accessed 23 April 2003 11 Prof. Madhukar Trivedi, Director Comprehensive Centre for Depression, University of Texas 12

NSW Government - Obesity Briefing Paper No 08/2012by Edwina Schneller 13 Bull FC, Bauman AE, Bellew B, Brown W. Getting Australia Active II: An update of evidence on physical activity for health. Melbourne, Australia. National Public Health Partnership (NPHP). August 2004. Accessed 23 April 2003 14 The Cost of Physical Inactivity - October 2008 Medibank Private

The cost of physical inactivity to the Australian economy is estimated to be $13.8 billion.

• It is estimated that 16,178 Australians die prematurely each year due to physical inactivity.

• Productivity loss due to physical inactivity equates to 1.8 working days per worker per year

Medibank Private 2008



The research suggests that a 4 percent sustainable increase in productivity could be achieved for those workers who commenced regular sport and physical activity. Frontier Economics utilized these findings together with the Medibank study data which suggested an inactivity rate of 0.54% indicating expected average productivity to increase by a little over 2%. Therefore productivity gains by making the workforce healthier through increased physical activity could be as much as 1% of GDP (or $12 billion) equating to potential $3.75 billion productivity gains for NSW.

Just a 10% increase in sport participation of the working population could result in $375 million worth of productivity gains in NSW.

The Volunteer Contribution An important and understated phenomenon in sport is the role of volunteers. Indeed, sports dominate the field of volunteering in Australia. The 2010 ABS General Social Survey found that over 6 million people, or 36% of the adult population aged 18 years and over, participated in voluntary work in 20109. Sport and physical recreation organisations attracted the largest number of volunteers with 2.3 million people (37% of the volunteer population), followed by religious organisations or groups (1.4 million or 22%) and community and welfare organisations (1.3 million or 21.5%).9

The magnitude of voluntarism has a number of implications. First, in economic terms volunteers act as an input of labour into the conduct of community sport and elite sport. In New South Wales there are approximately 736,000 volunteers in sport and recreation. Based on the average weekly wage in NSW of $1,459 and a conservative two voluntary hours a week equates to $60 million worth of labour input per week and a minimum of $3 billion worth of labour per annum for New South Wales.

Without volunteers, there would be fewer sports activities and they would be more expensive to provide. Consequently, volunteers play a significant part in bringing about the benefits imputed by sports such as health in community sport and in sustaining the structure that leads to elite sport.

In grass roots sport the volunteers are the ‘human face’ of sport. They provide the first point of contact for participants and undertake valuable roles in coaching, officiating and administration functions. They play an important role in community building efforts.

Finally, the process of volunteering is good for the people involved with health and psychosocial benefits. Society derives value from these benefits in the same way as it does from the improved health outcomes that come from participation in sport.



Elite Sport Contribution The most significant contribution of elite sport to the well-being of people in New South Wales is

through the satisfaction and state/national pride that we derive from the success of elite sportspeople

at the national and international level.

Australian Unity computes a personal well-being index periodically, based on different components.

There is a strong correlation between movements in this index and performance by elite sportspeople.

In 2008 the contribution of elite sport was shown to increase the Australian Unity Wellbeing Index15 by

more than $23 per household. The elite sport contribution is valued at $184 million based on 8 million

households x $23 of increased wellbeing which equates to $60 million in NSW in 2008.

This sense of wellbeing is what economists consider to be pure public good as it is providing satisfaction

and pride to all of the population.

The contribution to the economy is enormous through events and competition including attendance,

infrastructure, merchandising, visitations and expenditure/consumption - this analysis has not factored

in the considerable economic contribution of events.

Sport Social Contribution “Sport brings people together, breaks down barriers and has the ability to unite people who may have no

other semblance of shared identity. Its ability to transcend race, religion, gender and creed is powerful

and important for inclusive communities.” (Madden, J. Ministerial Statement 2004)16

While it is well recognised that sport makes a contribution to the building of national pride, and the value of sport and active recreation in community health, there are additional benefits that these activities bring to the communities and people of New South Wales. Sport plays an important role in society and contributes to our lives in many ways. Sport and active recreation helps to build communities through social inclusion and a sense of connection. Sport helps to bind families through shared experiences and shared achievements. It provides the catalyst for community gatherings, from small functions to major sporting events, where people play, talk and share experiences. Importantly it has a positive effect that reaches many levels of our society such as helping to address social isolation which can lead to poor mental health.

Sport is an important thread that ties our social fabric International research shows that increasing community participation in organised sport and recreation contributes to what is known as “social capital”, which is the “social fabric” or glue that ties members together in a given locality. 17 According to Putnam18 sports clubs and community organisations are important conduits for developing such capital and are good barometers of community strength. Community sport is also valuable to Aboriginal and Torres Strait Islander people and those from culturally and linguistically diverse (CALD) backgrounds in New South Wales as it can provide a vital passageway to improving social, physical and economic wellbeing and a means for integration and connectedness in the community. 15

Australian Unity wellbeing Index, www.australianunity.com.au/about-us/wellbeing/auwbi 16 Madden, J. (2004). Ministerial Statement: A focus on community sport and recreation. 17 Eva Cox, A truly civil society (Boyer Lectures 1995) 18 Robert D. Putnam, Bowling Alone: The Collapse and Revival of American Community (2000)



Through sports-based programs such as AFL’s “More than a Game”19 strong qualitative evidence supports the significant contribution to young people’s feelings of confidence and self-esteem in relations to negotiating cultural difference and cultural stereotypes, particularly in terms of recognising and developing skills related to physical ability, intercultural communication, teamwork and leadership. The experiences of such programs strengthens young people’s social networks and can be a powerful facilitator of sense of belonging, which encourages young people to engage in relations of reciprocity, trust and shared vulnerability with groups where social and cultural differences may previously have led to conflict, while also providing them with “a means of recognition, reward and being valued by their community” 20

Sport in regional areas The beneficial effects on social cohesion, educational outcomes for young people, and the positive impact on physical and mental wellbeing which flow from participation in organised sport and active recreation is particularly important in regional areas, where it has always been one of the main cohesive elements that draw people together. At a time when regional communities are under pressure, the value of sport and recreation becomes even more important. In most regional and remote communities, it is the local tennis, football, hockey or basketball club that provides and sustains community interaction. The social interactions which occur through participation in sporting teams and community clubs play an important part in shaping and reinforcing patterns of community identification and community belonging with the following flow-on effects; social ties, power relations and social capital, social networks, community integration, flow of information and creating a sense of belonging.21

19 “More than a Game”: the Impact of Sport-Based Youth Mentoring Schemes on Developing Resilience toward Violent Extremism: Amelia Johns, Michael Grossman and Kevin McDonald Social Inclusion (ISSN:2183-2803) 2014 20 Hall, N , “Give it everything you got”: Resilience for young males through sport. International Journal of Men’s Health, 10(1), 65-81 (2011) 21 Atherley, 2006, Cortis, Sawrikar & Muir, 2007:1, Smailes, 2002:89



Sport can enhance cognitive development and educational outcomes In the past few years, neuroscientists have made significant strides in quantifying sports brain-boosting powers at all stages of life. For young minds, the benefits to academic performance and attention are also convincing: Not only do children with higher levels of fitness have a more developed brain structure and perform better on cognitive tests; embedding exercise – even short spells of moderate activity – into classroom time improves focus, retention and test scores. University of Illinois reported in August 2014 that children who are more fit have better white matter tracts (which affect learning) in their brains, building on earlier work in which they also found higher levels of development in areas of the brain that support critical thinking and memory. The university’s neurocognitive kinesiology lab conducted a clinical trial with children 7 to 9 years old. Half participated in a two-hour play-based sport session after classes. Within 160 days, says Charles Hillman22, the lab’s leader, those youngsters were found to have a “significant” increase in brain function compared with the control group, and performed better on attention and cognitive tests. A number of researches reinforce that physical activity, including participation in organised sports, produces intellectual and academic benefits; these benefits may have long-term positive effects on life chances.

Participation in physical activity affects key brain functions critical to learning.

For adults and children, exercise facilitates executive function (i.e., processes required to select, organise and properly initiate goal-directed actions).23

Physical activity has positive influences on concentration, memory and classroom behavior, and a positive relationship with intellectual performance.24

Physical activity activates specific biochemical and proteins (brain-derived neurotropic factor and IGF-1) and loci in the brain having to do with certain functions that sharpen thinking and enhance memory, including focus, concentration and impulsivity; these functions have an impact on achievement.25

Children and youth who participate in organised sports report higher achievement in school. Structured activity participation, especially in sports, has a positive relationship with school grades, while “Engagement” in the activity also makes a significant difference (of as much as a third to a half a year) beyond duration of participation, in the degree of improvement in achievement levels.26

22 Charles H. Hillman, Department of Kinesiology and Community HealthUniversity of Illinois, Urbana, Illinois 61801, USA.(2014) 23 Tomporowski, P. D., Davis, C. L., Miller, P. H., & Naglieri, J. A. (2008). Exercise and children’s intelligence, cognition, and academic achievement. Educational Psychology Review, 20, 111–131 24 Trudeau, F. & Shephard, R. J. (2008). Physical education, school physical activity, school sports and academic performance. International Journal of Behavioral Nutrition and Physical Activity, 5 (10) 25 Ratey, John, Spark: The Revolutionary New Science of Exercise and the Brain (2008) 26

Hildegarde E. Mahoney, Chairman Harvard Mahoney Neuroscience Institute, Harvard Medical School, Boston MA USA



Challenges that Face Sport and Inhibit Economic Growth in New South Wales

“The current reality is that a small number of large state sporting organisations that benefit from televised national professional competitions thrive and about 70 others struggle every day to service and support their own members and meet the legal and regulatory burdens they face.”27

Core funding for New South Wales state peak sporting organisations

lowest in Australia

New South Wales Government’s Sports Development Program (SDP) funding for state sporting organisations ranges from $5,000 to $60,000 per annum. The quantum of monies allocated has remained static since the year 2000 including no CPI adjustments and is significantly lower per capita than that found in all other Australian states. During the same period, national sporting organisation (NSO) funding from the Australian Sports Commission (ASC) has increased by 110% despite a small decrease in the past financial year.

Sports Development Program (Core) funding per head of population

NSW $36.38 QLD $202.67 ACT $349.00

NT $1,706.58 SA $181.23 TAS $210.95

WA $199.60 VIC $104.00

Includes Vic Health funding

Sourced from State Sport & Recreation Dept. Annual Reports for 2012/13

When considering funding per participant in the sport, NSW State Sporting Organisations again receive much less compared to other states and territories. This chart depicts the state by state total sport delivery funding (excluding facilities) for the sport of gymnastics. Note, Northern Territory statistics not included in the chart.

27 Nous Group - NSW Sports Federation Strategy Review Report|17 October 2012

$349.00

$210.95

$202.67

$199.60

$104.00

$36.38

ACT

TAS

QLD

WA

VIC

NSW

Sports Development Program Core Funding (per head of state/territory population)



Comparison of government funding of state sporting organisations across Australia – Sport of Gymnastics

Member Federation

Number of registered Gymnasts

Core Funding

Program Funding

Health Funding

Total Funding per player

NSW 47,000 $55,000 $27k n/a $77,400 $1.63

Victoria 36,982 $50k $108k $200k $358,025 $9.68

WA 11,513 $300k n/a $36,802 $336,802 $29.25

South Aust. 16,266 $40k n/a $30,000 $70,000 $4.30

Tasmania 4,458 $40k n/a n/a $40k $8.97

ACT 3,374 $68k n/a n/a $68k $20.15

NT 1,077 $79k $4,756k n/a $83,756 $77.77

Queensland 37,328 $300k n/a n/a $300k $8.03

The total state government budget for the core funding of state sporting organisations, Disability organisations and the two peak industry bodies (Sport NSW & Outdoor Recreation Industry Council) is $2.7 million.

The South Australian Government spends $3.1 million on core funding for the same types of organisations -

a state which has 22% of NSW’s population.

In addition to the sports development grant scheme, the NSW Sport and Recreation operate a participation program grants scheme with funds ranging from $10,000 to $20,000 depending on the nature of the application. In Queensland such additional participation grants can be as high as $300,000.

The lack of core funding limits state sporting organisations’ ability to;

support their regional associations and clubs,

develop, introduce and implement new participation strategies to increase participation

employ development officers to promote the sport and provide valuable training and support for volunteers

With additional core funding – NSW state sporting organisations through their

well established and developed club networks, will be able to step up as a highly

efficient way of providing the levels of moderate and vigorous physical activity

required to counteract the increasing healthcare costs due to inactivity and at the

same time assist in increasing workforce productivity and social cohesion.

$0.00 $5.00 $10.00$15.00$20.00$25.00$30.00$35.00

NSW

Victoria

WA

South Aust.

Tasmania

ACT

Queensland

Total State Government Funding per registered Gymnast



Funding for state sport industry organisation less than half of the same

organisations based in other major states in Australia

Core operating funding for Sport NSW is also significantly below the current level of funding for similar peak sports bodies in other major Australian states.

Whilst the tight funding in NSW affects all community sporting organisations, it represents a significant and

ongoing challenge for Sport NSW, by constraining the capability and capacity of the state’s peak sports body

to assist the sport sector to grow, especially as Sport NSW supports and represents a much greater number

of sport participants, workers and volunteers.

With greater resources, Sport NSW can assist members to harness further the power of sport to reach

broader health, education, social and economic objectives and support sustainability.

The structure of Sport NSW and its wide reach through member organisations provides a unique,

efficient and effective service delivery organisation for government objectives.

The State Government’s Sport and Recreation division has also faced a continual decline in funding and resource allocation over many years which seriously affect its ability to support the growth of sport to achieve the State 2021 Plan commitment for an increase in sport participation and work in the areas of industry regulation and policy.

$0

$100,000

$200,000

$300,000

$400,000

Qsport WA SportsFederation

VIC Sport Sport NSW

Core Operating Funding for State Sport Peak Bodies

There are efficiencies that can be made through current government structures, grants

and public resources that can be redirected to ensure better economic, health and social

outcomes for the state through sport.



The cost of participating in sport is rising

The EU Expert Group on the Sustainable Financing of Sport notes that membership trends in European

sports clubs are sensitive to the business cycle.28 In Australia, participation rates in sport and recreation are

highest amongst both males and females with higher socio-economic indicators.29

Participation in sport is often expensive in both monetary (club fees, equipment, travel costs) and non-

monetary (time) and in terms for individuals in accessing sport facilities and the time taking in travelling and

in participation. The longer the distances that people need to travel to access sports facilities and

competition, or the longer waiting period to access facilities of adequate quality, the less inclined people will

be to take part in sport.

Sports clubs and associations are also faced with rising maintenance, accreditation, training, mitigation

of risk and insurance costs. In recent years, the regulation of volunteering, governance and officiating,

through the Australian Sports Commission and National Sporting Organisations, has also imposed rising

administration costs and in some cases can act as a barrier to participation at the grassroots level.

Most state sporting organisations are significantly underfunded in comparison to their counterparts in

other states and territories and at the same time face considerably higher capitation fees that have to

be paid to their national sporting organisations. These financial constraints mean that operational costs

inevitably need to be passed onto the end consumer, the participant.

According to Frontier Economics30 People with lower incomes tend to participate less in sport; and

lower incomes are also associated with poorer health outcomes. Policies that address participation

problems amongst poorer income groups can improve health outcomes for these groups (a

distributional or equity effect), but can also make society as a whole better off (that is the efficiency

angle) because of the effects of better health and reduced health costs.

There is a need for policies that address participation problems amongst poorer income groups to enable improved health outcomes for these groups

(distribution of equity) which will also make the New South Wales community better off (equity) because of the effects of better health,

reduction of state health costs and greater social cohesion.

28 European Union Expert Group Sustainable Financing of Sport (2011), “Report from the first meeting – 16 November 2011”, EU Work Plan for Sport 2011-2014, Brussels, p.3. 29 Australian Bureau of Statistics (2006), Women’s participation in sport and physical activities, 30 The economic contribution of sport to Australia, January 2010, Frontier Economics



Involvement in organised sport has declined

Whilst participation in any type of physical exercise has increased slightly in line with population growth

in NSW, the number of people playing organised sport in NSW has actually fallen by more than 4% in

the three years to 2010.31 According to the Bureau of Statistics, in 2011/12 NSW’s participation in

organised sport is now the second lowest in the nation and in 2014 could well be the lowest.

Without intervention this trend is likely to continue, with participation in organised sport

affected by an ageing Australian population and an increase in population in NSW who face

additional barriers to participation due to physical, social and/or economic disadvantage.

Changing lifestyles and competing forms of entertainment have also created an increasingly complex

landscape, making it a challenge to readily adapt sport products to the changing attitudes and

behaviours of Australians in relation to sport. Furthermore, research has shown that sport preferences

have changed over the last ten years with an increased uptake in sport being played in a non-organised

social environment, versus a stagnation of participation in traditional organised sport. 32

In response to this decline and in recognition of significant health and social benefits of sport, a number

of initiatives have been introduced aimed at ensuring that sports continue to foster their grassroots

participation base and their elite competitors as well as providing broader participation opportunities.

These changes are fundamentally reshaping the role of clubs, the sport workforce, volunteers and

private providers in the delivery of sport and recreation activities. The development and

implementation of such changes requires public investment to receive the public good derived by the

broader New South Wales population.

Sporting clubs are often the backbone of communities and their survival is at risk unless sport adapts their sporting products to cater for the changing consumer needs and provide broader participation opportunities. The demise of sporting clubs will have a significant impact on the health, economy and social fabric of our NSW communities.

Never before has the need to increase social inclusion, to bind communities and to increase participation in sport to improve health and wellbeing in NSW been so important than now.

Identifying and facilitating alternative means to encourage involvement in organised sport through

participation, volunteering and administration is a key focus area for Sport NSW and it should also be

underpinned by increased investment by the New South Wales Government to reverse the trend.

Investment and assistance in reversing the decline is required in sport participation through

the support of sports in making use of contemporary research and the knowledge, skills,

ideas and experiences of the sector to grow capability to develop and deliver innovative

services which develop both demand and supply for sport.

Sport NSW aims to help sports become better businesses, generating different revenue streams and

growing participation as well as growing professionalism, integrity and viability of the sport sector in

NSW.

31

Australian Bureau of Statistics, 6285.0 - Involvement in Organised Sport and Physical Activity, 2004, 2007, 2010. 32 The Future of Australian Sport - consultancy report by CSIRO for the Australian Sports Commission, Stefan Hajkowicz, Hannah Cook, Lisa

Wilhelmseder and Naomi Boughen, April 2013

April 2013



Volunteer participation in sport has declined

The magnitude of voluntarism has a number of implications. First, in economic terms volunteers act as

an input of labour into the conduct of community sport and elite sport. In New South Wales there are

approximately 736,000 volunteers in sport and recreation.

Goal 27 of New South Wales Government’s 2021 Plan is to increase the proportion of the NSW

population involved in volunteering, to exceed the national average by 2016.

In NSW volunteer participation in sport fell between 2007 and 2010, outpacing the national declinei33

Although volunteers are recognised as central to a well-functioning sport and recreation sector, increased

bureaucracy, limited resources and management of risk make it difficult to maintain volunteer numbers in

community sport.34

In a recent Sport NSW survey of NSW state sporting organisations35, they were asked if they receive an

additional $100,000 in core funding, what they would do with the money. The overwhelming response

from state sporting organisations was that they would invest in new participation initiatives, the training

of volunteers and employment of development officers to help clubs get more people participating in

sport.

Having a New South Wales Government goal of increasing volunteer participation is admirable however

public funding is required to achieve such a goal.

Financial support is important at a state level to annually recognise through the NSW

Community Sport Volunteer Awards, the value of sport volunteers across all sports and

particularly innovative clubs, showcase best practice in volunteer management and disseminate

this information state-wide.

Financial support is also required to enable delivery of club workshops targeting volunteer recruitment drives particularly broadening the pool from different population groups not already involved in sport volunteering, provision of positive experiences for volunteers, appropriate education and training to overcome the increasing concerns amongst volunteers as well as strategic management of the volunteer leadership succession process.36

33 Australian Bureau of Statistics, 6285.0 - Involvement in Organised Sport and Physical Activity, 2004, 2007, 2010. 34 Former Member for Oatley in the NSW Parliament Kevin Greene stated that ‘there is no doubt that the strength of sport in this State, indeed the sport in Australia, is the role of volunteers.’ Cf. funding levels to individual sports organisations. 35 ‘Have your say - Sport NSW Advocacy Survey’, Sport NSW, 30th June 2014 36

Volunteers in Sport: Issues and Innovation, A report prepared for NSW Sport and Recreation, Griffith University Business School March 2008



Participation in National Teams has declined

Since 2004 New South Wales representation in Olympic and Commonwealth Games Teams has dropped significantly with Queensland having more athletes in the 2014 Australian Commonwealth Games Team

despite New South Wales having close to three million more people

National Team Total NSW Athletes Total Australian Team Numbers

Total NSW % of Australian Team

2002 Manchester Commonwealth Games

113 371 30%

2004 Athens Olympic Games

152 482 32%

2006 Melbourne Commonwealth Games

109 414 24%

2008 Beijing Olympics

104 435 24%

2010 Delhi Commonwealth Games

84 368 23%

2012 London Olympic Games

96 408 23.50%

2014 Glasgow Commonwealth Games

99 413 23.4%

ABS data for 2014: Australian population 23,425,700 million, NSW population 7 500,600 which is 32% of the Australian population.

The sense of state satisfaction and pride at the performance of elite athletes from New South Wales may diminish along with the enjoyment of the ‘public good’, if participation in sport declines and the numbers of athletes moving up into talent and elite performances continue to decline.

By enhancing the chances of sporting success through increasing the base of participation and investing in quality coaching and talent development programs, there will be an increase in New South Wales wellbeing which provides economic, personal and social benefits.



Barriers to participation need to be addressed further to ensure equity

In national and international contexts women are under-represented in sports participation and

administration.37 This is particularly true amongst culturally and linguistically diverse women.38

While this disparity is attributed to school curriculums, lack of women in leadership roles, historical

cultural norms, the competition focus, lack of childcare, cost of participation and poor quality facilities,

a major contributing factor is believed to be the relatively fewer number of female sporting idols,

resulting from the lack of sponsorship dollars and media coverage dedicated to women’s sport.

Only 9% of all Australian sports media coverage is focussed on women’s sport. This remains a challenge

for the sport sector in terms of engaging women, sponsorship, rewarding elite performance and

providing high profile role models.39

Another key aspect of equity and access is the low participation rates in sport by key groups such as

Indigenous Australians, people with a disability and people from culturally and linguistically diverse

(CALD) backgrounds.

Population surveys conducted in Australia and internationally have shown that people who are socially

or economically disadvantaged are less likely to engage in specific sport activities and are more likely to

be sedentary in their leisure time. For most physical activities there is a clear socio-economic gradient,

and this is particularly evident in levels of education. Studies have shown that those who did not

complete school have lower participation rates in a range of physical activities compared with those

who were tertiary educated.40

37 National Centre for Cultural and Recreation Statistics, Canberra, p.1; and Australian Bureau of Statistics (2006), Women’s participation in sport and physical activities, National Centre for Cultural and Recreation Statistics, Canberra, p.1. 38 Cortis, N. and Muir, K. (2007), “Participation in sport and recreation by culturally and linguistically diverse women : stakeholder consultation report”, SPRC Report 5/07, Social Policy Research Centre, University of New South Wales, Sydney, pp. iv-vii. 39 Lumby C, Caple H and Greenwood K, University of New South Wales Journalism and Media Research Centre and Media Monitors, joint research for the Australian Sports Commission, published 2010, last updated January 2014. 40 Bull FC, Bauman AE, Bellew B, Brown W. Getting Australia Active II: An update of evidence on physical activity for health. Melbourne, Australia. National Public Health Partnership (NPHP). August 2004. Accessed 23 April 2003.

The NSW Government needs to provide increased funding to state sporting organisations to;

Implement strategies specifically designed to attract girls and women and retain them as members,

Create and tailor sport participation programs for people of all ages from culturally diverse communities,

Ensure sporting organisations can meet the needs of people with disability and support the modification of programs so that everyone can participate,

Deliver programs that support community participation in sport and physical recreation activities to improve the health, wellbeing and community inclusion of Indigenous Australians, and

Funding for grassroots participation for young people from disadvantaged families - similar to Queensland’s ‘Get in the Game’ program and the Western Australian Government’s ‘Sports 4 All’ Program, which includes vouchers of up to $200 that can go towards membership and participation in sporting clubs.



Sports facilities are over-used and under-maintained

The provision of a sport and recreation facility can significantly enhance the quality of life. Activities

held with sport and recreation facilities can encourage participation, promote health and well-being and

foster a sense of community. Community sport facilities are an important aspect of social infrastructure.

Participation in sport and active recreation relies on the adequate provision of local facilities. Sufficient

and safe facilities are a key enabler for sport participation at all levels and across all codes. The

Australian Government’s Crawford Report noted that there is a shortage of adequate public sports

facilities and that drought had exacerbated this problem for field sports.

Local government authorities are often insufficiently resourced to address these needs, whilst existing

facilities in schools, universities and defence installations are underutilised. Improved planning

processes and funding are needed, with coordination across all levels of government particularly in the

area of maintenance and ensuring community sport access.41

Key Issues Relating to LGA Facilities Access to facilities has been one of the main factors restraining growth in participation rates in NSW

sport. The development of more participation opportunities is reliant on access to facilities and long-

term facility management.

Key stakeholders in the allocation and use of facilities are state sporting organisations, via their clubs

and Local Government Authorities (LGAs) as the providers of facilities.

LGAs contribute significantly to sport and active recreation and as the primary supplier of sport

facilities, have until the last few years had the capacity to meet demand. However, recent trends in

community growth, urban development, water restrictions and greater demand for a wider variety of

sports have restricted LGAs ability to meet demand.

An increase in population density in Sydney and the subsequent increase in residential and

commercial development has meant the amount of public open green space has decreased.

As a result, many LGAs have effectively become land locked in the metropolitan regions and

in many cases developing new facilities is no longer an option which is severely impacting on

the ability to increase sport participation.

Currently many LGAs in Sydney state that sporting facilities are being maximally utilized creating

situations which see sporting clubs turned away or limits placed on the number of teams a club can

cater for.

Currently existing facilities are stretched to capacity and many are under maintained. Local

government authorities are insufficiently resourced or have not planned well to address these

needs.

In some cases the costs of LGA sport facility leases and the required leasing fees such as for tennis

courts are targeted at private providers who understandably need to ensure maximum use for their

business to be able to meet the annual lease costs. With the leasing of tennis courts in Sydney up to

$200,000 per annum access for community tennis clubs is out of reach or severely limited.

41

Australian Government (2009), The Future of Sport in Australia, Independent Sport Panel, Canberra, p.111



Poorly designed, maintained and dirty facilities are a major deterrent for girls and women participating

in sport. There are sporting fields in New South Wales that do not even provide toilet and change room

facilities for women and girls.

Addressing the sport facility issues With the growing awareness of the benefits of regular exercise and participation in community sport for

our health, it is increasingly important that every member of our community has fair and equitable

access to these benefits.

Improved planning processes and funding are needed, with coordination across all levels of government

in cooperation with state sporting organisations and particularly in the area of shared use of facilities.

Redistribution of federal and state grants to councils and communities with the greatest need is very

important as people that are socially and economically disadvantaged including those from a non-

English speaking background and Indigenous communities are the least likely to participate in sport and

organised active recreation due to cost, lack of transport and access to sporting facilities.

Finally, sufficient and safe facilities are a key enabler for sport participation at all levels and across all

codes. There is a shortage of adequate public sports facilities and local government authorities are

insufficiently resourced to address these needs, whilst existing facilities in schools, universities and

defence installations are underutilised.

Greater cross government and sport cooperation, investment and strategic planning is

needed to help develop uniform guidelines for all sport and active recreation facility

planning, management, leasing, fees and event infrastructure including traffic management

to ensure that participation in community sport and active recreation is affordable,

encouraged and supported.

Regional sports organisations face exacerbated challenges

Many of the issues and challenges identified above are further exacerbated outside capital cities and

major metropolitan centres. Regional sports clubs and associations are faced with fewer resources than

their metropolitan counterparts, and often suffer from a skills shortage for the administration and

management functions of the organisation.

These organisations draw from a smaller pool of people, resulting in sports more intensely competing

for participants, volunteers and officials. The large distances to travel for competition also pose an

additional cost in regional areas and the opportunity for sponsorship and local government financial

support is restrained.

Training opportunities are limited and support from their state sport peak bodies can be limited due to

cost of travel and lack of resources.

A collaborative approach, the sharing of resources and strategic support is required to address the

issues facing community sport in regional NSW.



NSW Sports Federation Inc.

6a Figtree Drive, Sydney Olympic Park NSW 2127 PO Box 517, SYDNEY MARKETS NSW 2129

TEL: (02) 8116 9740 FAX: (02) 8732 1613 Email: [email protected]

Cheryl Battaerd, Chief Executive Officer

Ph. (02) 8116 9740 or 0418 456 231 Email: [email protected]

Investing in Community Sport

For economic growth and to support healthy, active and connected communities in

New South Wales




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