'A national crisis': 16,000 Australian community sport clubs face collapse in wake of Covid-19
An indication of the potentially devastating effect of the Covid-19 outbreak on community sport on Australia has been revealed, with a quarter of clubs across the nation at risk of closure if suitable financial support is not quickly secured.
The Australian Sports Foundation, a non-profit sports fundraising organisation and charity, conducted a national survey and estimated the country’s 70,000 grassroots clubs need $1.2bn to survive the economic fallout of the pandemic.
“This is not just a sporting crisis, but a national crisis,” the ASF’s chief executive, Patrick Walker, said of the prospect of about 16,000 clubs – a quarter of clubs nationally – being unable to recover.
An estimated $1.6bn has already been lost by local clubs since the pandemic hit in March and forced a halt to all sporting activities, both professional and amateur.
Despite a return to fields and courts since then, that figure stands to rise even higher after a recent increase in cases in Victoria forced another lockdown in Melbourne and prompted fears the resurgent virus may spread to other states.
The impacts of a second lockdown would be wide-reaching, Walker said, and not just financial.
“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,” he said.
The findings of the study are stark, if unsurprising: most main sources of revenue have ceased or declined during the crisis due to dwindling memberships, sponsorships, fundraising and events and hospitality; 93% of all clubs have lost money due to ongoing expenses coupled with that loss of revenue; and 70% of small local clubs were expecting a reduction in the number of participants due to the period of inactivity and concerns over hygiene.
The survey also highlighted that many clubs have little in terms of capital or cash reserves, and over half reported they have less than six months of funds available to them.
It found $400m would be needed to save those clubs, while the most atrisk clubs – those which need support within the next three months to stay afloat – require an immediate injection of $300m.
Walker said a return to sporting activity at grassroots level across the country after the latest setbacks would not mean the crisis was over, rather it would represent the beginning of a challenge to ensure the survival of community sport by securing muchneeded funding.
“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,” he said.
“These clubs are about more than the sport itself – they are the lifeblood of communities all over Australia. 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.”