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Economic characteristic of non-profit sport clubs and their relations with municipalities and sport federations

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  • Marek Pavlik

    () (Department of Public Economics, Masaryk University)

Abstract

There is a running discussion about the system of financing sport from public budgets and there are opinions that the sport is not sufficiently supported. We know surprisingly little about the situation of non-profit sport clubs and to find a better support system we have to gather information about the environment of sport clubs. What do we know about relations of sport clubs with public authorities and their own sport union/federation and why do we need to know? The aim of this paper is to gather information about economic situation of sport clubs; to analyze relationships between non-profit sport clubs and municipalities/sport federations with special stress on the problem of transparency; and to discuss consequences of revealed situation We gathered data from sport clubs and performed an analysis especially for three selected sport branches (athletics, basketball, karate) and we show results of questionnaire among sport club and present examples of practice of randomly selected municipalities. We discovered a significant “failure” in the relationship between sport clubs and their own sport federations. We also showed strong dependency of sport clubs on the grants system respectively we pointed on interesting connection between grants and economic results of sport clubs. Finally we revealed not marginal problem with the transparency during grants allocation.

Suggested Citation

  • Marek Pavlik, 2013. "Economic characteristic of non-profit sport clubs and their relations with municipalities and sport federations," Working Papers 09, Masaryk University, Faculty of Economics and Administration, Department of Public Economics, revised Apr 2013.
  • Handle: RePEc:mub:wpaper:09
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    File URL: http://repec.econ.muni.cz/mub/wpaper/working%20papers/WPKVE-09_2013_Pavlik.pdf
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    References listed on IDEAS

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    1. Oecd, 2001. "Understanding the Digital Divide," OECD Digital Economy Papers 49, OECD Publishing.
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    More about this item

    Keywords

    Public sector; public finance; grants; sport; NGO; allocation rules; municipality; transparency; vouchers.;

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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