Education Magazine 34-2

The Value of Sp We know that sport is invaluable. But now we have a better idea of the actual monetary value of sport with the publication of a new report from Sport Ireland - 'Researching the Value of Sport in Ireland' THE National Sports Policy has identified the need to gain a deeper understanding of the value of sport in Ireland and the returns that Government investment in sport provides across relevant policy areas such as physical and mental health, education, community development, economic activity, tourism, crime, sport club membership, volunteering, etc. Against this national backdrop, Sport Ireland commissioned Sheffield Hallam University’s Sport Industry Research Centre (SIRC) to conduct a programme of research for assessing the value of sport in Ireland. The economic impact of sport in Ireland was measured using the National Income Accounting (NIA) methodology. This enables the sport economy to be broken into seven sectors: consumers; commercial sport; commercial non-sport; community/non-profit sports sector; local government; central government; and, international trade. The income and expenditure accounts for these sectors are used to derive three key economic indicators: consumer expenditure on sport; sport-related Gross Value Added (GVA); and, sport-related employment. Consumer expenditure Consumer expenditure on sportrelated goods and services in Ireland in 2018 was €3,341.6m, or 3.1% of total consumers’ expenditure. Since 2008, sport-related expenditure has grown both in absolute terms and as a percentage of the Irish overall consumer spending. The latter increased from 2.0% in 2008 to 3.1% in 2018. A large part of consumer spending on sport is directed towards participation. For example, the biggest spending categories are ‘subscription to sport clubs’ (€622.9m), followed by ‘sport clothing and footwear’ 12 Education

(€568.8m), ‘subscriptions to fitness and dance’ (€490.9m) ‘admissions related to participation’ (€427.2m), and ‘sport goods and bicycles’ (€345.2m). GVA Sport-related value added to the Irish economy in 2018 was €3,671.8m, or 1.4% of total output in Ireland. Sport-related economic activity has grown from €1,830.3 (1.1%) of Irish GVA in 2008. As in the case of consumer expenditure, this represents a growth in both absolute terms and as a percentage of the whole economy.

mercial sport, commercial non-sport and public sectors support 24%, 23% and 21% of Ireland’s sportrelated jobs respectively. Economic value of volunteering Volunteering represents both a non-financial input to support sport and physical activity and an outcome in terms of the non-market value generated for sports organisations using volunteers. The economic value of sport volunteering in Ireland in 2018 is estimated at €1.5 billion, which represents a substantial increase from 2008 (€0.3-€0.6 billion).

Sport's share of employment (2.8%) is greater than the sportrelated share in GVA (1.4%). Employment This is Health impact of sport Employment in sport was 64,080 consistent It is estimated that over 97,000 in 2018, or 2.8% of all employment with the cases of disease were prevented in in Ireland. Sport-related employment European Ireland in 2019 from sport and has grown from the original position experience, physical activity participation, which of 2.1% of Irish employment in showing that is equivalent to nearly €0.5 billion in 2008. This represents a growth in sport is an health care and wider costs savings. absolute and percentage terms. The effective sport share in employment (2.8%) is policy tool for The notional cost of sports injuries was estimated to be around €93 greater than the sport-related share generating Employment million and therefore the net gain in in GVA (1.4%). This is consistent employment. health was worth closer to has €0.4 bilwith the European experience, showis likely in Ireland. Employment in sport was 64,080 in 2018, or 2.8%This of all employment Sport-related employment grown lion.a growth in absolute and percentage ing that sportposition is an effective policy to be from the original of 2.1% of Irish employment in 2008. This represents It isshare projected that the value of the tool for generating This is greater particularly terms. The sport share employment. in employment (2.8%) than the sport-related in GVA (1.4%). This is consistent health benefits can increase even is likely to be particularly effective with the European experience, showing that sporteffective is an effective policy tool for generating employment. This is likely to be particularly effective during periods of recession. during periods of recession. during periods further to more than €0.5 billion if the proportion of Irish adults underThe largest sector of sport-related of recession The largest sectorinof2018 sport-related employment sector, the supporting 20,690 jobs orlevel 32% ofof taking recommended employment was the com- in 2018 was the community all sport-related employment in Ireland. The commercial sport, commercial non-sport and public sectors support 24%, activity increases from 34% to 45%. munity sector, supporting 20,690 23% of Ireland’s jobs respectively. Sport and physical activity has a jobsand or21% 32% of allsport-related sport-related measurable impact on the physical employment in Ireland. The comSport-related economic indicators for Ireland

2008

2018

Consumer expenditure on sport (€million)

1,885.6

3,341.6

Total consumer expenditure in Ireland (€million)

93,863

106,977

2.0%

3.1%

Percentage of Ireland’s total consumer expenditure Sport-related GVA (€million)

1,830.3