More sport, less crime and a healthier society, it seems so simple. But the problem: there is not always enough money.
Sport and culture (theaters, concerts, and other form of artistic performances) often exist by the fortune of people who put their spare time into it. Culture more than sport is seen as a luxury and not a primary “business” need. In this context we shouldn’t underestimate the role of sponsorships.
In the provincial life this – sponsorship – is sometimes the main source of income for clubs and societies. During an economic crisis and a possible recession, (regional) governments will face lower income due to less tax revenues and will cut budgets which will affect sport.
The missing or extra source of income is achieved by the aid of sponsors who use sponsorship as an additional marketing campaign. It is however not the main priority but more an extra activity for the companies who can afford sponsorship during growth. A lot more difficult it becomes for both the company as for the club who needs the money when a recession is expected. The company’s management is the first to cut unnecessary budgets. Clubs on the other hand do not always manage their budget as efficient as possible.
During the growth-cycle clubs spend all their income, whereas they could save for less prosperous times. It also happens that they over-ask their sponsors at times when they can afford it. This leads to an inefficient management of resources. It is often not the clubs priority to manage sport and business at the same time. Even for professional clubs this is often a problem.
Balancing seems to be the keyword. And like the experiences of the financial crisis: a longer term view on (sports and club business) results would certainly help.