The North East sports economy could contribute even more millions into the region if it boosted investment in women's professional sport, a study suggests.
A new report from law firm Irwin Mitchell and the Centre for Economics and Business Research showed Newcastle and Sunderland contributed £118m gross value added and supported 5,160 jobs between 2019-2020. The authors also say more is possible, making several recommendations including boosting investment in women’s professional sport, the creation of guidelines and funding to support environmental objectives and calls for Government to prioritise the introduction of new legislation for a new independent regulator for English Football.
The study - which defined the sports economy as the operation of sports and fitness facilities, clubs, the manufacturing of sporting goods and retailing of sporting equipment - used Office for National Statistics data to estimate the economic activity directly generated by sports activities for each city.
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Its findings put Newcastle among the country's top 10 cities for the percentage of sports GVA as a share of the city’s economy. The 'Competing for Growth' report also pointed to a fan-led review of football governance, published by the Government earlier this year. The authors support the review's call for an independent regulator for English football and urged the Government to follow through on a pledge to legislate and published a White Paper on the issue.
Thomas Barnard, partner and national head of Irwin Mitchell’s Sports sector team, said: "Sport, and particularly football, plays a huge part in the economies of the North East. Our report found a positive relationship between the number of teams in high-tier sports leagues and a city’s level of sports GVA and it was no surprise that the region is a hotspot for sport related economic activity. The Government’s fan-led review of football governance prompted recommendations for a new independent regulator for English Football.
"This would involve clubs having a license to operate and this license would be conditional on assessments of finances, fan engagement, protecting club heritage and corporate governance. A suggestion from the report includes ‘real time finance monitoring’ which would require constant up-to-date data on clubs to clarify their financial situation. This would ensure liquidity and reserve requirements are met and early signs of financial instability could be identified before they become a detriment to the club, the fans and ultimately the local economy.
"The Government accepted or supported all 10 recommendations included and agreed to legislate and bring forward a White Paper during the Summer. We look forward to seeing it soon as the Government says it’s committed to making football more sustainable."
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