The study, conducted by Sheffield Hallam’s Sports Industry Research Centre, Sports Economics Austria (SpEA), and Econmove, shows that in 2021, the sports sector contributed £99.6 billion in direct economic output to the UK economy, equivalent to 2.5% of total UK economic output. Additionally, sport-related activities generated £53.6 billion in direct Gross Value Added (GVA), representing 2.6% of the total UK GVA in 2021.
The research, commissioned by the Department for Digital Culture, Media and Sport, also highlights the sector's significant impact on employment, directly supporting approximately 1.25 million jobs, accounting for 3.9% of total UK employment in 2021. Moreover, £34.8 billion in wages were paid in sport-related occupations, equivalent to 3.1% of all wages in the UK economy.
Despite the challenges posed by the COVID-19 pandemic, the sports sector demonstrated remarkable resilience. Between 2019 and 2021, sport-related GVA decreased by only 2% in real terms, compared with a 7% decline in the UK's overall GVA. The sector's contribution to total UK GVA increased from 2.44% in 2016 to 2.6% in 2021, showcasing its growing importance to the economy.
The study considers both characteristic sporting goods (e.g., sports facility operations) and connected goods (e.g., sportswear manufacturing, sports media). Results are broken down by each Home Country and local authority, measuring both active (87% of direct output) and passive sports (13% of direct output). Active sport encompasses all expenditures associated with individuals actively participating in sport. Passive sport refers to the consumption of sport without active participation.
The research also reveals a significant multiplier effect, with every £1 spent in sport generating an additional 55p in GVA elsewhere in the economy.
Notably, the sports sector's £53.6 billion GVA contribution in 2021 surpassed several other significant industries, including construction of buildings (£40.2 billion), food and beverage services (£36.5 billion), and telecoms (£33.3 billion).
Dr Themis Kokolakakis, who led the research, said: “This research is the most comprehensive Sport Satellite Account ever conducted in the UK. It was a groundbreaking achievement to disaggregate the UK data down to Home Country level. As a team we are hugely proud of the technical skill we brought to the process and hope that our work will have a positive impact on the sport industry.”
This research underscores the vital role of the sport sector in the UK economy and its contribution to the Government's Growth mission. The findings will enable policymakers to make more informed decisions about supporting and developing this crucial industry.
For more information and to access the full report, including local authority estimates, please visit Sport Satellite Account for the UK 2024: Research into a new measure for estimating the value of sport - GOV.UK (www.gov.uk)
