How the Budget could make your day at the football worse
In the countdown to the Budget, it’s hard to escape concern from industries ranging from hospitality and retail to fintech or leisure. However, one sector which should not be overlooked is sport.
Still feeling the impact from last Autumn, the sport world is readying for further impact come 26 November. And, as with any changes, the buck won’t stop with the clubs and employers themselves, but will ripple out to fans, communities, and talent alike.
Budget concerns
The books of any club go far beyond its on-pitch talent. Last year’s hikes to employer national insurance and above-inflation changes to national minimum/living wage levels have been hitting clubs hard. The latter, for instance, is like a stealth tax for clubs, increasing wages for matchday roles including bar staff, ticket/programme sellers, and stewards. There are also knock-on effects on wage bands for these roles’ supervisors, their managers, and so on.
The feeling now is any further announcements on Wednesday will only exacerbate difficulties. Rumoured changes to pension salary sacrifice schemes, currently a tactic for tackling national Insurance spend, just increase concerns.
Pressures will reach even the biggest Premier League outfits. However, impact could be critical for smaller clubs and sports – and their followers and matchdays.
Cutbacks and compromises
Since the first wave of changes last Autumn, matchday experiences have suffered. A snapshot survey of the sport sector in March found 45 per cent of respondents were already planning to increase ticket prices, while 35 per cent planned a headcount reduction.
Clubs are also increasing food and drink prices, reducing spend on elite and/or grassroots programmes, and slowing infrastructure spending. Some are even increasing technology spend to supercharge efficiency savings and reduce employment costs.
Fans should expect these trends to intensify if – or when – further policy changes come into play following the Budget. Even if increases to the minimum wage mean fans theoretically have more to spend on games, price increases in the cost of living – and sport – are more than offsetting these.
Community impact
Effects won’t be felt equally across the board. Clubs and sports with bigger balance sheets can absorb cost rises more easily, and those with followers who are typically more affluent can more readily count on passing on matchday costs to fans.
However, there are countless clubs in less lucrative sports, or even within the same sport but based in less affluent regions, which simply cannot take the hit themselves or pass it to local fans. Changes are affecting these clubs disproportionately. And where grassroot/wider facility cuts are concerned, this will only amplify differences long term.
Budget beyond matchdays
The matchday experience – spanning costs for fans, staffing levels, facilities, and investment in on-pitch performance to name but a few factors – is an essential case study showing the impact across the sporting world of recent and expected Budget changes.
However, it doesn’t end there. No aspects of the sport ecosystem will go untouched. Grassroots, emerging and women’s sport are looking to continue growing their profile and may now have less to put into commercialisation and marketing. Or Sport England’s recent study on the value of community sport and physical activity for the economy and wellbeing.
If 2024’s Budget was a punishing first round for clubs, the 2025 rematch looks to be no easier – but for fans, athletes, and wider communities, it’s essential they receive as much support as possible to cope with the new challenges.