LO5 Flashcards
What are the 8 types of funding?
- Sponsorship deals
- Loans
- Grants
- Membership deals
- Debentures
- Philanthropic donations
- Selling shares
- Fundraising
Sponsorship deals (advantages and disadvantages)
Positives
- Consistent income
- Recognition with advertisement/exposure for company
- Potential free kit/equipment
Negatives
- Over rely on sponsorships (Sky cycling team discontinued after sky pulled out)
- Rely on each other for reputation (Mason Greenwood and Adidas)
Loans (advantages and disadvantages)
Positives
- Quick money for the business
Negatives
- Have to pay it back
- Interest on the payment
- May put strain on relationship (if loaning from friends or family)
Grants (advantages and disadvantages)
- Government
- NGB’s
- Sport England
Positives
- Don’t have to pay it back afterwards
- Deliver government agendas
Negatives
- Rules as to how you spend it
- Can be hard to get access to
Membership deals (advantages and disadvantages)
- Season tickets
- Gym memberships
Positives
- Regular money for the business
- Good reputation if can cancel
- Get discounts
Negatives
- Customer can cancel (lose money)
Philanthropic donations (advantages and disadvantages)
Positives
- Less rules
- Don’t have to give/pay anything back
Negatives
- Not reliable
- Not consistent
- Can be hard to get
Selling shares (advantages and disadvantages)
Positives
- No rules as to how you spend it
Negatives
- Risk losing control of some of your company
- Not reliable
- Have to have the money to pay back the shares if they want to cash out
Fundraising (advantages and disadvantages)
Positives
- Raise awareness
- Networking to meet suitable people
Negatives
- Not consistent income
- Might not make enough money
- High commitment levels
Who can grant funding? (5)
- Government = DCMS
- Quangos = Sport England and UK Sport
- NGB’s
- Sponsorships
Who can request funding?
- Sports clubs
- Community based organisations
- Schools and colleges
- Individual athletes
- Initiatives
What might sports clubs use funding for?
Put back into the club
- Equipment, facilities, coaches, officials and training
What might community based organisations use funding for?
Provide kit, equipment and facilities for sports based activities
- Scouts and guides using sports hall
What might schools and colleges use funding for?
Improve facilities, provide kit, equipment, cover external coaches and training sessions
- Barton requests funding for external coaches
What might individual athletes use funding for?
Cover costs of training, travel and equipment
What might initiatives use funding for?
Marketing, delivering, evaluating events
- Park sport (£1 local sports events)
- This Girl Can
- Mars Just Play
- Allstars cricket
