The Economic Dimension of Sport for a National
Economy - Germany
Prof. Dr. Holger Preuß
Johannes Gutenberg-Universität Mainz
Vilnius, 01.10.2013
| Economic Dimension of Sport
© Prof. Dr. H. Preuß
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Aim of this presentation
EU “White Paper on Sport” requests “satellite accounts sport” (SAS) in all
member states.
1) How did Germany construct this SAS ?
_____________________________
2) What is the importance of “private consumption” on the economy?
3) What is the importance of “sponsor / advertisements / media rights
consumption” on the economy?
4) What is the importance of “construction” on the economy?
______________________________
5) Which branches profit from sport ?
a) in terms of “gross value added”
b) in terms of “jobs created”
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Methods
How did Germany
construct this SAS ?
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The Sport Sector – Overview
sport consumption
sport consumption and its
effect on …
household
not monetarily
1.
2.
for participation
for passive sport
1.
2.
3.
4.
5.
Volunteering
Happiness & well-being
Education
Integration
…
others
monetarily
1.
2.
3.
4.
5.
6.
Sponsoring
Media Rights
Sports Venues
Club Subsidies
High-Performance Sports
Sport-Related Injuries
1.
2.
3.
4.
National sport success - image
International relations
Crime prevention
…
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The Sport Sector – Overview
monetarily
others
household
sport consumption
1.
2.
1.
2.
3.
4.
5.
6.
for participation
for passive sport
Sponsoring
Media Rights
Sports Venues
Club Subsidies
High-Performance Sports
Sport-Related Injuries
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© Prof. Dr. H. Preuß
Study 1
Private
Consumption
of Sport
Study 2
Advertisement,
Sponsoring &
Media Rights
Study 3
Sport Venues
Construction &
Operation
Secondary
Analysis
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The Sport Account Satellite– Overview
Private
Consumption
of Sport
Sport Venues
Construction &
Operation
Advertisement,
Sponsoring &
Media Rights
Source: Calculation of GWS Gmbh, G. Ahlert
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Data collection
Studies
2) What is the importance of “private consumption” on the
economy?
3) What is the importance of “sponsor / advertisements / media
rights consumption” on the economy?
4) What is the importance of “construction” on the economy?
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Studies conducted …
Study 1
Study 3
Study 2
Private
Consumption
of Sport
Advertisement,
Sponsoring &
Media Rights
Sport Venues
Construction &
Operation
n = 7,031 CATI
consumers
n = 10,424 CAWI
consumers
in 3 waves
n = 1,500 CATI
industry
n = 508 CATI
sport organisations
n = 74/59 CATI
agencies/experts
n = 455 CATI
community level
n = 204 CATI
expert interviews
+ secondary data
2009-2011
2011
2012
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Overall target of the 3 studies
What is the monetary primary impact of sport in our reference year
(2008) for the German economy?
• by consumers, companies and sport organizations as detailed as by
differentiating 88 industry branches.
…
• consider imports / exports
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Overall method of the 3 studies
Methodological steps
1. Categorization (definition of all sports / advertising / rights / sport
venues)
2. data collection “numbers” by a representative samples
3. data collection “monetary expenditures / investments” by “unit”
4. calculation of overall expenditures (input) in categories of the 88
branches to be used for the German Input-Output Model
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Studies conducted …
Study 1
Study 3
Study 2
Private
Consumption
of Sport
Advertisement,
Sponsoring &
Media Rights
Sport Venues
Construction &
Operation
n = 7,031 CATI
consumers
n = 10,424 CAWI
consumers
in 3 waves
n = 1,203 CATI
industry
n = 308 CATI
sport organisations
n = 74/59 CATI
agencies/experts
n = 455 CATI
community level
n = 204 CATI
expert interviews
+ secondary data
2009-2011
2011
2012
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Study 1: Consumption of households
Definitions
1) Sport = 71 types of sport (clustered by consumption)
2) Consumption = based on the broad Vilnius Definition, which
includes all categories of consumption included in the statistical and
narrow Vilnius definition plus all activities and consumption
categories that need sport as an input (SpEA, 2006)
•
Active participation: 32 consumption categories
•
Interest-related: 18 consumption categories
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Study 1: Consumption of households
transportation
1%
2% 2% 1%
3%
4%
sport-related vacation
30%
33,7 bn. €
10%
sport shoes & clothing
sport equipment
membership & entrance fees
112.6 bn €
13,3%
15,0 bn. €
(active participation)
media & information technology
body care
13,6%
15,3 bn. €
19,9%
22,4 bn. €
self-financed practices & performance
diagnostics
sport food & supplements
sport-related insurance
medical services & preventive products
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Study 1: Consumption of households
Consumption stimulates industry branches…
Government
Services
Industy
Finance
Transport
Source: Calculation of GWS GmbH, G. Ahlert
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Trade
Studies conducted …
Study 1
Study 3
Study 2
Private
Consumption
of Sport
Advertisement,
Sponsoring &
Media Rights
Sport Venues
Construction &
Operation
n = 7,031 CATI
consumers
n = 10,424 CAWI
consumers
in 3 waves
n = 1,500 CATI
industry
n = 508 CATI
sport organisations
n = 74/59 CATI
agencies/experts
n = 455 CATI
community level
n = 204 CATI
expert interviews
+ secondary data
2009-2011
2011
2012
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Study 2: Advertisement, Sponsoring and
Media Rights
project guidance
Definitions
1)
2)
3)
4)
Sport = 71 types of sport
Sport-related = advertising, sponsoring and media rights defined
by criteria.
Sponsoring = contracted exchange (and not donations)
Advertising = real market communication (and not just
information (internet))
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Study 2: Advertisement, Sponsoring and
High performance
Media Rights
sport
Grassroots Sports
1,096
2,045
In million Euro
Input for SAS in mill. € by industry branch:
Trade
Manufacturing
Construction
Hospitality industry
Scientific and technical service
Finance and Insurance
Information and Communication
Energy
Health and Social service
Other services
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Studies conducted …
Study 1
Study 3
Study 2
Private
Consumption
of Sport
Advertisement,
Sponsoring &
Media Rights
Sport Venues
Construction &
Operation
n = 7,031 CATI
consumers
n = 10,424 CAWI
consumers
in 3 waves
n = 1,203 CATI
industry
n = 308 CATI
sport organisations
n = 74/59 CATI
agencies/experts
n = 455 CATI
community level
n = 204 CATI
expert interviews
+ secondary data
2009-2011
2011
2012
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Study 3: Sport venues, construction and operation
project guidance
Definitions
1) Sport Venue = location where the 71 sports are performed
•
translates into 59 sport venues
2) Differentiation of costs to be considered
•
investments | operation/maintenance
3) Investor/carrier of costs
•
public | non-profit organisation | for-profit organisation
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Study 3: Sport venues, construction and operation
Specific venues:
6.9 bill €
(30 %)
Particular venues
(stadia…):
1.5 bill €
(7 %)
Central sport
venues:
13.3 bill €
(59 %)
Sport tracks:
1 bill €
(4 %)
Construction of sport venues, modernisation, maintenance and operation:
22,6 bn. €, 74% are paid by public authorities
For all together 231.441 sport venues and 366.795 km „tracks“
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Study 3: Sport venues, construction and operation
=> for SSA compilation transformation of the costs into 88 industry branches
0
Hochbau
Building construction
Gebäudebetreuung;
Garten- und
Landschaftsbau
Bulding operation
and
Gardening
Vorbereitende Baustellenarbeiten,
Bauinstallation
und…
Preparations of
construction
Civil engeneering
Tiefbau
Energy
Energieversorgung
…
Grundstücks- und Wohnungswesen
…
Wasserversorgung
…
Abwasserentsorgung
…
Maschinenbau
…
Großhandel (ohne Handel mit Kraftfahrzeugen)
…
Vermietung von beweglichen Sachen
1,000
2,000
3,000
4,000
3,144
2,832
31
1,684
956
86
2,380
1,902
891
421
291
278
242
32
230
Architektur- und Ingenieurbüros; technische, physikalische und… 16167
163
Einzelhandel (ohne Handel mit Kraftfahrzeugen)
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Herstellung von sonstigen Waren
Herstellung von Metallerzeugnissen
Sammlung, Behandlung und Beseitigung von Abfällen;…
Versicherungen, Rückversicherungen und Pensionskassen…
Rechts- und Steuerberatung, Wirtschaftsprüfung
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Betrieb
operation
152
129
Investitionen
investment
115
111
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Overall Results
Which branches profit from sport ?
a) in terms of “gross value added”
b) in terms of “jobs created”
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Overall Results SAS – European comparison
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OverallResults SAS –
Composition of the sport-related gross domestic products in
Germany (2008) with regard to its demand side related
components, in bill. EUR
households
clubs & associations
government
exports
imports
Source: Calculation of GWS GmbH, G. Ahlert
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OverallResults SAS –
Contribution of individual industries to the sport-related
employment in Germany in 2008
Sport
Trade
State service
Transport /
Hotel
Source: Calculation of GWS GmbH, G. Ahlert
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OverallResults SAS –
Contribution of individual industries to the sport-related gross
value added in Germany in 2008
Sport
State service
Information
Trade
Source: Calculation of GWS GmbH, G. Ahlert
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Conclusion
 In comparison to other European SAS the German SAS is based on primary data
collection because public statistics cannot be used. An overall new concept to
evaluate these data was developed.
 Despite limited research budgets the data were:
• calculated on sufficient samples of the most important categories
• validated by differentiating organisation (e.g. revenue of one entity must be expenditure of
the other)
 The 3 studies evaluated the primary economic impact of sport (reference year
2008) for Germany targeting a detailed base of 88 industry branches
 Overall findings show:
 Sport related consumer consumption is a huge amount (6.6% of all private consumption)
 Sponsorships and advertisements in grassroots sports contribute more than that of high performance
sport
 Most investments for sport venues and their operation is spent for central sport facilities and stems from
public resources
 Many different industries benefits from sport expenditures and create 4.4% of all jobs in GER
 Sport related gross value added 2008 in GER was 3.3%
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Thank you for your attention
Prof. Dr. Holger Preuß
Johannes Gutenberg-Universität Mainz
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Studies coordinators:
Household Consumption:
Sponsoring and Media :
Sport venues:
Satellite Account Sport:
Christian Alfs
Iris an der Heiden, Frank Meyrahn (2hm)
Iris an der Heiden, Frank Meyrahn (2hm)
Gerd Ahlert (GWS)
all projects in cooperation with Gerd Ahlert (GWS)
financed by BMWi, BMI, BISp
Villnius, 01.10.2013
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