Britain is a nation passionate about sport, yet its approach to financing it is fundamentally broken, according to a leading industry figure. While significant sums are poured into pitches, clubs, and community programmes, too much of this investment disappears into a black hole of short-term fixes.
The Charity Trap: Why Current Sports Investment Fails
Andrew Smith, founder and chief executive of Sporta, argues the core issue is that funding is seen as an act of charity rather than a strategic investment for growth. Sport England estimates that every £1 invested in community sport yields around £4 in social value, through healthier populations and reduced pressure on the NHS. While this justifies public spending, it leaves private investors asking a more direct question: what is the tangible return?
Companies and wealthy patrons often contribute for love of the game or brand exposure, but their money frequently just plugs budget gaps in clubs. This creates a fragile model where sports funding is often the first casualty during an economic downturn.
Building Sustainability: From Handouts to Seed Capital
The solution, Smith contends, is a relentless focus on financial sustainability. Investment must transition from covering last season's losses to creating new, durable revenue streams. A sustainable club can reinvest in its own growth—for example, by upgrading facilities to attract paying members or launching programmes that draw sponsors. This turns each pound into long-term income, not a one-off donation.
For investors, this changes the game. Instead of throwing good money after bad, they can build lasting ventures with real return potential. This model opens up opportunities beyond Premier League giants, allowing capital to back viable lower-league and grassroots projects.
Practical Steps Towards Smarter Investment
The good news is that new models are emerging to help sports organisations operate more like businesses. One major opportunity lies in unlocking nearly £500 million a year in unclaimed Gift Aid, to which community clubs are entitled but often cannot access. Firms like Grassroots Sports Funding are working on this.
Operational efficiencies are also key. Schemes like aggregated kit purchasing through platforms such as My Club can slash costs by up to 40%, freeing crucial funds for clubs to reinvest in their own development.
In short, Britain cannot continue to simply throw money at sport. The call is to invest smarter, demanding sustainability and backing clubs that treat every pound as seed capital for growth. This shift will build resilient clubs, strengthen communities, and finally deliver the lasting legacy that sport deserves.
Andrew Smith is the founder of Sporta, an organisation seeking to become a fully licensed UK bank.
