The contribution sport makes to the
New South Wales economy
The Value of Sport
Calculating the economic
contribution of sport in NSW
‘In addition to providing significant health and social benefits,
sport and physical recreation has considerable economic
importance which is reflected in the latest household expenditure,
production and international trade data’
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Andrew Middleton, Australian Bureau of Statistics (ABS), 24/10/2013
Economic benefits*
 NSW households spent on average $18.94 per week in 2009-10 on
sport & recreation resulting in $7.4 billion annual expenditure.
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 Sport and recreation economic contribution is approximately 2.1%
of gross state product (GSP) equating to $9 billion annual
contribution *
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 In the 2011 Census, ABS reports 28,969 persons were employed in
sport and physical recreation occupations in New South Wales
Individual value
Improved;
 Significant economic benefits through events, infrastructure,
visitations, expenditure, goodwill and raising the profile of the region
and state.
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Reduced health care costs and improved productivity*
Community level sport promotes regular moderate and vigorous
physical activity (MVPA) within an organised competitive and social
environment.
 Health costs are escalating to unsustainable levels. Physical inactivity
contributes 6.6% of the overall health burden in Australia and 10% of
all deaths.
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 The NSW Government reported that in 2012 obesity costs the state
$19 billion. Sport is part of the solution.
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 It is estimated that 5,177 people die each year due to physical
inactivity.
 Health-care costs could be reduced in NSW, in gross terms $477
million per annum savings if more people were actively involved in
sport
 Productivity loss due to physical inactivity equates to 1.8 working
days per year per worker.
 4% sustainable increase in productivity could be achieved for
workers who commenced regular sport and physical activity.
 A 10% increase in sport participation would result in $375 million
worth of productivity gains for NSW.
Volunteer contribution*
In New South Wales there are approximately 736,000 volunteers in
sport and recreation. In economic terms volunteers act as an input of
labour into the conduct of community sport and elite sport
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Sport volunteers provide a minimum of $3 billion worth of labour
per annum for New South Wales
Volunteers play a significant part in bringing about the benefits
imputed by sports such as health in community sport and in
sustaining the structure that leads to elite sport.
Direct industry contribution
Reduction in health costs
Workforce productivity increases
Direct and intangible contribution to
social capital
Improved quality of life and feeling of
wellbeing in the community
Contribution via consumption and
taxation¹
Physical literacy,
self-esteem,
fitness/health,
self-efficacy,
cognitive function and
social ties
Civic benefits
Social capital, strong community networks
and social cohesion
 Reduction of anti-social behavior and crimes
through diversionary sport programs
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 Positive impact on well-being and
local/state pride through elite athletic, team
and event success
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 Elite sport increased Australian Unity
Wellness Index by $60mil in NSW in 2008.
About Sport NSW
NSW Sports Federation Inc. operates under the
name of Sport NSW and is the active voice and
peak body for sport in NSW. A small, not for
profit organisation with a membership
representing over 15,000 community sport
clubs and associations and 2.5 million
participants, volunteers and workers in NSW.
Cheryl Battaerd, CEO Sport NSW,
Cheryl.battaerd@sportnsw.com.au
Inhibitors of the Growth of Sport and the NSW Economy
The NSW State Government’s 2021 Plan states in goals 24 & 27;
 To increase participation in sport
 To increase opportunities for young people, people with
disabilities and disadvantaged members of society to
connect with their communities through sport, and
 To increase the proportion of the NSW population involved
in volunteering, to exceed the national average by 2016.
The reality is that community sport in NSW is under threat due
to the lack of government investment and the absence of
recognition of the value sport contributes to the NSW economy
and the health of our state.
Never before has the need to increase social inclusion,
to bind communities and to increase physical activity
to improve health and wellbeing in New South Wales
been so important - than now!
Sports Development Program Core Funding
(per head of state/territory population)
NSW
$36.38
VIC
 Cost of participation in sport
increasing in NSW
 Core funding for NSW state sporting
organisations (SSO) lowest in Australia
per capita and per participant
 No change in core funding levels of
SSOs since the year 2000 not even CPI
adjustment
 Funding recently has been on 12
month basis inhibiting strategic and
forward planning for increasing
participation and delivering significant
sporting events
 Employment in NSW sport stagnant
$104.00
WA
$199.60
QLD
$202.67
TAS
 Participation in organised club sport
declining in NSW – close to the lowest
rate in Australia
 Volunteer participation in sport has
fallen in NSW and is outpacing the
national decline
$210.95
ACT
$349.00
Core Operating Funding for State Sport Peak Bodies
$400,000
 Poorly targeted government funding,
structures and red tape missing mark
for sport and negatively impacting on
economic, health and social
outcomes for the state
$300,000
 NSW representation in Australian
Olympic and Commonwealth Games
teams has dropped significantly in the
past 10 years from 32% Athens 2004 to
23.5% London 2012, Glasgow 23.4%
$200,000
$100,000
$0
Qsport
WA Sports
Federation
VIC Sport
Sport NSW
Sport in NSW has well-developed club networks providing a highly
efficient and effective way of providing levels of moderate and
vigorous physical activity for the people of New South Wales.
Government investment can increase the participation in organised
sport by ensuring the availability of infrastructure and reducing the
cost of participation. With appropriately targeted investments, the
additional benefits attributable to increased participation would
outweigh additional costs associated with the investment (e.g.
construction and operational costs and subsidies).
Cheryl Battaerd, CEO Sport NSW
www.sportnsw.com.au
* Economic impact data estimates derived from
recent reviews such as ABS Value of Sport,
4156.0.55.002, 24/10/13 and ratios established from
earlier NSW studies and cross-checked against
standard multipliers and economic data, ABS Aust.
National Accounts – State Accounts 2013-14, 5220.0.
All references provided in support documentation;
‘Investing in Community Sport’ – Sport NSW 2014-15.
¹Maximising the Potential of Australian Sport,
Confederation of Australian Sport ACT 2014.