The Funding Goals of Triathlon Scotland - Term Paper Example

Funding Triathlon Scotland Introduction Triathlon Scotland is the Scottish national governing body (NGB) that is responsible for the multi-sport triathlon in which participants compete in swimming, cycling, and running at a single event. Like most NGBs, Triathlon Scotland relies heavily on public funding, disbursed through the National Agency of Sport in Scotland. According to its latest strategic plan, the sports body has the vision to contribute to the world-class success and inspire participation, by encouraging new people to join sports, to improve gender balance in the sport, and to encourage people to engage in sport throughout their lives through clubs. To do so requires financial sufficiency which is waning with each passing year. In recent years, the Government of the United Kingdom, like most governments, has found itself financially constricted. As such, the government has been forced to initiate a number of recession-induced austerity measures. As such, there are ongoing considerations to transfer the burden of funding to national sports governing bodies such as Triathlon Scotland which currently operate under government financing. Strengths of the Current Funding Model There are numerous benefits that sports management bodies derive from their dependence on public financing and support. Foremost, this financing approach enables the organizations to have in place national leadership structures which include clubs, workforce, and promotions (Parnell, Spracklen, & Millward, 2017). As such, the body becomes more focused on the game because the finances are forever catered for. Secondly, the role of the government is important in ensuring sustainable international linkages and affiliations. This is important for the organization to be part of the external competitive environment and the adherence with international standards. The role of government in ensuring the availability of sports facilities also plays an important part in ensuring that talent is continuously nurtured at all level (Berry & Manoli, 2018). The lack of conflict of interest makes leadership transition in such organizations to have no significant impact on the overall financial performance. Additionally, there is no single custodian of the vision of the organization and the shared view of what the organization intends to achieve makes it easy to manage. Also, there is the advantage of public support and the willingness to get such organizations out of financial mess. Public financing, therefore, not only provides the organization with financial stability but also exposes it to numerous other opportunities. Challenges of Current Funding Model to Triathlon Scotland For Triathlon Scotland to meet its long-term objectives, it has to increase its capacity, an undertaking that requires consistent capital investment. However, with its current financing model, the financial performance of the sports body is tied to that of the national government. It is noteworthy that government financing is a function of both the micro and macroeconomics. Following the global financial recession of 2008/2009, governments resorted to austerity measures, the impact of which continues to be felt. As a result of reduced funding, sport management bodies are increasingly under pressure to deliver high capacity, high-quality services within budget constraints. Parnell, Spracklen & Millward, (2017) also note that austerity measures aim to reduce overall expenditure while ensuring competitiveness. Non-profit sports management bodies, such as Triathlon Scotland, are required to demonstrate short-term value for money when the success of such bodies lie in their sustainability and posterity. Apart from the direct impact of the austerity measures on the performance of Triathlon Scotland, there are long-term effects. Austerity measures imply that the accessibility and delivery provided by community facilities and clubs are reducing. As a result, the sports body cannot keep up with its promise to expand and maintain a steady growth of its membership. In encouraging sports entities to do more with less, they have to trade their focus on community-wide participation with the need for individual competitiveness. This is in line with the suggestion of Clausen et al., (2018). Organizational capacity is tied to resource dependency, meaning that sports bodies have reduced capacity when their resources are reducing. It is the intention of the sports management body to record progress incrementally in terms of participants and performance in tournaments. However, the uncertainty that comes with austerity measures is likely to bring in management confusions and reduced capacity (Clausen et al., 2018). Recommendations on How to Diversify Revenue Streams In the wake of increasing austerity measures which hamper the capacity of sports management bodies, it is needful for these bodies to consider the diversification of their revenue streams. Going by the suggestions of Clausen et al., (2018), Triathlon Scotland needs to put in place strategies that will enable it to attract commercial sponsorship income. This will help to cushion the body against the negative impact of macroeconomics on government expenditure (Parnell, May, Widdop, Cope, & Bailey, 2018). Gradually, Triathlon Scotland should consider marketization, commodification, and commercialization as avenues for revenue generation. These three strategies target to involve the private sector into sports funding while maintaining the independence of the sports bodies as national governing bodies that uniformly regulate the sport. Through commercialization, sports management bodies are able to diversify their revenue streams beyond government funding. The first strategy to ensure commercialization is through continued diversification. This differentiation should extend to both competitive and recreational professional and amateur sports. The research conducted by the Parnell, May, Widdop, Cope, & Bailey, (2018) revealed that the second way is to promote individualization in which case participants are encouraged to pay a little amount as part of their commitment and appreciation for the management of the game. Allowing for commercial actors to set up and be accommodated within the national management structure will attract the corporate world into the sporting industries thereby injecting the much-needed financing (Wicker, Feiler, & Breuer, 2013). Offering sports as a commodity to the consumer can help enable convenience to the athlete while providing revenues to the sports management body. Incorporating a consumerist approach to sports should take the form of time convenience. The user should be served with training regime offers that take into consideration their daily schedules according to financing Wicker, Feiler, & Breuer, (2013), this approach involves bringing together various health players in the economy to deliver products and structures that promote healthy living and attract the user in form of subscriptions. While doing so, it is important that the quality of service is standardized and provides the user with value for their money. With regards to marketization, sports management bodies have a number of approaches to offer their services while securing financial stability. Apart from regulated commercial revenue generation, Triathlon Scotland can also consider social entrepreneurship and contract competition. In the research conducted by Parnell, May, Widdop, Cope, & Bailey, (2018), it was ascertained that becoming market-oriented, the sports body can open up facilities for renovations and upgrade by private sector organizations at a fee. While doing so, the body also provides strict operational rules which ensure that the managing entities adhere to standards that maintain the quality and competitiveness of the game. Challenges Whereas these recommendations are workable, a number of challenges arise. Foremost, commercialization abuses have been noted and their impact on sports can be detrimental. Care must be taken so that in the process of commercialization, sports values and goals are not traded off with the profits. From the opinion given by Wicker, Feiler, & Breuer, (2013), commercialization can deny the game the fun, socialization, exercise, and community which it intends to strengthen. Inasmuch as commercialization promises to expand the capacity of the sport, the priorities should not be reversed such that commercial interests are put first. Doing so would be counterproductive for the sport. Conclusion The funding goals of Triathlon Scotland, the Scottish national governing body (NGB) must meet certain standards, policies, and regulations, it must, therefore, look forward to ensuring that it mobilizes sufficient resources to enable it to discharge its responsibilities for the multi-sport triathlon in which participants compete in swimming, cycling, and running at a single event. It is evident that Triathlon Scotland relies heavily on public funding, just like it is the case with other National Governing Bodies. This report has provided a detailed analysis of how the funds mobilized through the various process. Therefore, it is recommended that the funds collected be disbursed through the National Agency of Sport in Scotland in accordance with its latest strategic plan. References Berry, R., & Manoli, A. E. (2018). Alternative revenue streams for centrally funded sport governing bodies. International Journal of Sports Policy and Politics, 1-22. Clausen, J., Bayle, E., Giauque, D., Ruoranen, K., Lang, G., Schlesinger, T., ... & Nagel, S. (2018). International sport federations’ commercialisation: a qualitative comparative analysis. European Sport Management Quarterly, 1-20. Parnell, D., May, A., Widdop, P., Cope, E., & Bailey, R. (2018). Management strategies of non-profit community sports facilities in an era of austerity. European Sports Management Quarterly, 1-19. Parnell, D., Spracklen, K., & Millward, P. (2017). Sport management issues in an era of austerity. Wicker, P., Feiler, S., & Breuer, C. (2013). Organizational mission and revenue diversification among non-profit sports clubs. International Journal of Financial Studies, 1(4), 119-136. Read More