One in four clubs fear insolvency, and the Australian Sports Foundation calls on philanthropy, businesses and governments to work together to help clubs survive

The Australian Sports Foundation (ASF) has conducted a national campaign to help it determine the impact of Covid-19 on community sport across the country and found Australia’s 70,000 community sports clubs need funding support to the tune of $1.2 billion to survive the effects of the crisis.

Community sports clubs have already lost an estimated $1.6 billion to date due to Covid-19 and with lockdowns continuing in parts of Australia and sport still in jeopardy, this figure is set to rise.

Alarmingly the survey revealed that over 16,000 (approx. one quarter) of community sports clubs nationally are thought to be at risk of closure if funding support isn’t provided within the next six months.

On top of the financial impact, 70% of Small Local Clubs are forecasting a reduction in the number of participants due to loss of interest caused by the period of inactivity and/or concerns around health and hygiene, while 43% forecast a decline in volunteers, which are so vital to the running of community sport.

“Our survey shows that without financial support thousands of community clubs risk insolvency in the months ahead which presents a real risk to the physical and mental health of our communities. This is not just a sporting crisis, but a national crisis.

“And the return to sporting activity, whenever it happens, does not mean the crisis is over - indeed, it is just beginning.

To solve a problem of this scale requires a collaborative approach, so we are calling on all who care about the role of sport in creating healthy, inclusive communities to help us fund grassroots sport’s recovery,” said Australian Sports Foundation CEO Patrick Walker.

The survey revealed:

• Most main sources of revenue ceased or declined (with up to 80% of clubs reporting declines in one or more of memberships, sponsorships, fundraising and events/hospitality)
• 91% of Small Local Clubs (an estimated 42,600 clubs around Australia) recording ongoing expenses such as utility bills, affiliation fees, maintenance and rent
• 93% of all clubs lost money due to ongoing expenses coupled with the loss in revenue
• Losses were funded by clubs drawing down on savings or going into debt.

The survival of thousands of clubs is under threat if financial support is not provided quickly as responses to the survey also showed that community clubs have little in the way of capital or cash reserves with over half of all clubs reporting less than 6 months funds available, and one quarter citing insolvency risk as one of their major challenges.  

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“Our task now is to help community sport survive COVID-19. Having highlighted the unfolding crisis, and now  quantified the scale of the problem, we want to work with Australia’s political, philanthropic and corporate leaders - and everyone who cares about the role community sport plays in our way of life - to help solve the issue,” said Mr. Walker.

While the funding needed to support each club through the resumption and the months that follow is relatively small, in aggregate the funding required is significant at $1.2bn. For the most at risk clubs -  those needing support within 3 months - the amount needed is estimated at $300m, with a further $400m of support for those at risk within 6 months.

No one stakeholder will underwrite this cost, so a co-ordinated approach is needed – but the much-needed money needs to be raised and distributed to clubs in need within the next six months to avert a national crisis.

“Community sports clubs face multiple challenges in the months and years ahead, including reduced revenues and increased costs, together with pressures on the affordability of sport for participants, and projected declines in volunteers due to health concerns.

“These clubs are about more than the sport itself – they are the lifeblood of communities all over Australia. They are made up of individuals who pay utility bills, shop at supermarkets and fill up at petrol stations. They are not the top end of town, but need support from this sector and the whole philanthropic community if we are to avoid the loss of thousands of clubs and the widespread social dislocation that would follow” said Mr Walker

The national survey commenced Wednesday 20 May and was open for five weeks and asked respondents for detailed information on how the COVID-19 crisis has affected community sports clubs, its participants and its volunteers.

The survey collected 4,337 responses from 4,127 unique organisations and covered around 100 different sport types from the mainstream like football, netball and cricket, to sports with only one or two respondents, like carriage driving and pickleball.

The full report can be found here: https://www.dropbox.com/sh/pa8p3frqof8zzlr/AADY1AZLeXf_Cm1wKJLxyfiQa?dl=0

About the Australian Sports Foundation

The Australian Sports Foundation is Australia’s leading non-profit sports fundraising organisation and charity, and the only organisation to which donations for sport are tax-deductible.

In the last 30 years the Sports Foundation has distributed hundreds of millions of dollars to Aussie sports clubs to help develop an inclusive and active sporting nation, and to strengthen local communities.

For more information please visit covid.sportsfoundation.org.au

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