A new modelling tool, launched by Sport England, can show the economic benefit of sport to local communities.
The Economic value of sport – local model, developed by Cambridge Econometrics and SQW, provides each individual local authority, county sport partnership and local enterprise partnership area within England with estimates on sport's contribution to the local economy.
The Economic value of sport – local model tool provides a snapshot of the overall value of sport in a local area and indicates the contribution made by businesses and services supporting people playing sport. It also shows the value of wider interests in sport like sports broadcasting or attending major events.
The model measures “value” as Gross Value Added (eg the wages and operating profits of businesses) and the jobs associated with the production of sports goods and services.
Also taken into account is the economic value of the health benefits of being regularly active, volunteering in sport and the wider spending of spectators and participants.
The new tool also allows local partners to assess the potential economic impact of change.
It does this by estimating the effect of increasing or reducing the number of people playing sport by theoretically investing in new facilities, facilities closure or increased marketing spend to attract those not playing sport regularly.
Alongside the estimate there is also guidance on how best to use this estimated value.
James Allen, Head of Policy at the Sport and Recreation Alliance, thinks that the new Sport England tool is a useful addition to the wide array of evidence which makes a compelling case for investment in sport and recreation.
“Considering the fact that councils are facing budget cuts of a size not seen for generations, it is vital that they can see that expenditure on sport and recreation is actually money well spent. This tool does just that by outlining on a local level the huge benefits that investment in sport and recreation can and does brings to their local areas.
“Our Reconomics research showed the economic value of outdoor recreation on a national scale, and in our Public Health Working group we will be focussing much of our work on showing the cost-benefits of regularly getting active.This tool adds to this work and is another addition to the compelling evidence that sport and recreation makes us happier, healthier and wealthier.”
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