Sport makes heavyweight contribution to England’s economy

16 Aug 2010 01:13 PM

Growth in the sport sector has outstripped the English economy as a whole over the past two decades, new research has revealed.

The sport economy’s annual contribution has reached £16.668 billion1 - up 140% in real terms between 1985 and 2008.

The research was commissioned by Sport England and carried out by the Sport Industry Research Centre at Sheffield Hallam University. The researchers found that growth between 2005 and 2008 was “driven by investment directed towards the London Olympics and a long-term Sport England policy to increase sport participation”. They argue that sport’s resilience reflects the growing number of people who “consider sports participation as being more a basic need than a luxury”.

Other key findings of the report, The Economic Value of Sport in England, include:

Sport England’s Chair, Richard Lewis, said: “These figures underline the huge value of sport to our country, and the significant role it can play in supporting the economic recovery.

“The growing number of people playing sport is driving up the sector’s economic value, as well as fostering skills, such as leadership and teamwork, that will help the nation’s businesses to emerge strongly from the current financial climate.”

The report also compares the value of the sport sector across the country. It finds that London makes the largest contribution, reflecting the size of the capital’s economy. However, per capita spending on sport is greatest in the east of England at £404.

Minister for Sport and the Olympics Hugh Robertson said:

“In these tough economic times sport has shown its worth. Hosting the Olympic and Paralympic Games is helping to deliver growth for the sector and we want to capitalise on that further in the run up to 2012 and beyond. This report is proof that sport is a serious industry and not just a pastime - with job opportunities on the rise in the private sector, despite the recession.”

Notes to Editors

  1. This figure is the gross value added (GVA) by the sport sector in 2008, based on current prices. GVA is calculated as the sum of wages and profits generated in the sector. GVA in 1985 was £3.358 billion, and in 2003 it was £13.649 billion.
  2. Real term growth. Sport-related consumer spending accounts for 2.3% of overall consumer spending in England.
  3. Sport-related employment in England has grown from 304,000 in 1985 to 441,000 in 2008.
  4. 339,000 (76%) of sport-related employment was in the commercial sector in 2008. The voluntary sector accounted for 11% and the public sector for 13%.

You can read the full report by clicking the following link, ‘The Economic Value of Sport in England, 1985 – 2008’

Sport England invests National Lottery and Exchequer funding in organisations and projects that will grow and sustain participation in grassroots sport and create opportunities for people to excel at their chosen sport.

Sport England is committed to creating a world-leading community sport system, and has set specific and measurable targets to achieve by 2012/13: