News

25/01/2021

Sports facilities - the necessary urban infrastructure or the proverbial endless mooch?

Doing sports has become a very popular activity over the last few years. Being fit is fashionable and desirable. The local authorities realized this, hence, like mushrooms after the rain, all kinds of sports halls and other such facilities began to grow. How is their financing carried out? Are they profitable? We decided to gather information on this topic in one place. Below you will find the results of our research.

Sports facilities  – definition 

According to the encyclopaedic definition, a sports facility can be defined as an independent or complex group of fields and buildings intended for sports purposes. The sports facilities, among all the others, include:

  • sports halls
  • swimming pools
  • gyms
  • tennis courts
  • race courts
  • ski jumps
  • stadiums

Their costs vary widely. However, the issue of their financing, i.e. construction and subsequent maintenance, is very interesting topic that we have developed below.

Financing of sports facilities

It cannot be denied that since Poland's accession to the European Union, our entire infrastructure has improved significantly. The roads and centres of the largest cities are not the laughing stock for the rest of Europe. The changes can be seen basically everywhere. Even in small towns and villages that until recently were remains of  the times of the Polish People's Republic.

The funds for the implementation of one of the most popular projects in recent years, i.e. Orlik-2012, were in large part coming from local government funds. Only a small part was financed by the European Union.

The aim of the aforementioned program was to build "Orlik" (local football pitch) in every borough in Poland by 2012. In December of the same year, five years after the start of the project, it was completed with half success. It is true that more pitches were built than planned (2600 instead of 2012), but 811 municipalities were left without the promised facility.

As for the current situation, in 2020 the Ministry of Sport allocated PLN 200 million from the Physical Culture Development Fund to co-finance local sports infrastructure. Another edition of this program is planned for this year.

However, maintenance of facilities seems to be bigger problem than the construction. So let's seriously consider how you can earn on them? Is it even possible or not at all?

How to earn on sports facilities ?

This question probably arises in the mind of every mayor or president who is responsible for the management of sports facilities. However, in order to reap financial benefits from such places, you need a solid business plan and the ability to hit a niche. That is why we recommend observation of regional preferences.

In Biłgoraj, located around 50 km away from Zamość, the local team Łada 1945 Biłgoraj plays its matches. Although the stadium in Bilgoraj is one of the most modern facilities in the voivodeship, the club itself does not have extensive training facilities. The owners of one of the hotel facilities located near Biłgoraj came up with the idea of building an indoor Sports Center, which would include, things like a heated air hall, a natural grass pitch and many others.

Less than six years after the official opening of the aforementioned Center, it turned out that its creation was a bull's eye. The facility has already developed a solid and reliable brand. fFootball teams from all over Poland visit it during pre-season training camps and tournaments. Therefore, it was enough to check exactly what was the region lacking. Success and profits came by themselves.

Advertising is a trade lever

An inseparable element of every football stadium and sports hall are advertising banners placed around the pitch. When observing a sporting event, we involuntarily look in their direction as they are within our sight. It is similar with the name of the object.

Energa Stadion in Gdańsk, Inea Stadion in Poznań and finally the Warsaw PGE Narodowy are only a few of Polish stadiums which names refer to sponsors.

So it cannot be denied that the existence of any type of sports facility is not possible without the proverbial "selling out" to external entities. It is only up to you, as its manager, on what terms such cooperation will take place and how much you can squeeze out of it

Reality seen through rose-colored glasses

There is sad and painful truth that in various regions of Poland, we can, unfortunately, meet objects that, only a few years after the uprising, remain unused and fall into ruin. Unfortunately, the lack of a proper analysis of the demand in the region and leaving the responsibility for the implementation of the project in the wrong hands may bring negative consequences.

Old, Polish proverb which says "think first, then do" should apply in such cases as well. However, there is lot of tangible evidence that the opposite turns out to be true.

Comments: