1. The Economic Dimension of Sport for a National Economy - Germany | Economic Dimension of Sport | 1 © Prof. Dr. H. Preuß Prof. Dr. Holger Preuß Johannes Gutenberg-Universität Mainz Vilnius, 01.10.2013

2. | Economic Dimension of Sport | 2 © Prof. Dr. H. Preuß Aim of this presentation EU White Paper on Sport requests satellite accounts sport (SAS) in all member states. 1)How did Germany construct this SAS ? _____________________________ 2)What is the importance of private consumption on the economy? 3)What is the importance of sponsor / advertisements / media rights consumption on the economy? 4)What is the importance of construction on the economy? ______________________________ 5)Which branches profit from sport ? a) in terms of gross value added b) in terms of jobs created

3. | Economic Dimension of Sport | 3 © Prof. Dr. H. Preuß Methods How did Germany construct this SAS ?

4. | Economic Dimension of Sport | 4 © Prof. Dr. H. Preuß The Sport Sector – Overview sport consumption 1.for participation 2.for passive sport sport consumption 1.for participation 2.for passive sport sport consumption and its effect on … 1.Volunteering 2.Happiness & well-being 3.Education 4.Integration 5. … sport consumption and its effect on … 1.Volunteering 2.Happiness & well-being 3.Education 4.Integration 5. … monetarily 1.Sponsoring 2.Media Rights 3.Sports Venues 4.Club Subsidies 5.High-Performance Sports 6.Sport-Related Injuries 1.Sponsoring 2.Media Rights 3.Sports Venues 4.Club Subsidies 5.High-Performance Sports 6.Sport-Related Injuries 1.National sport success - image 2.International relations 3.Crime prevention 4.… 1.National sport success - image 2.International relations 3.Crime prevention 4.… not monetarily household others

5. | Economic Dimension of Sport | 5 © Prof. Dr. H. Preuß sport consumption 1.for participation 2.for passive sport sport consumption 1.for participation 2.for passive sport monetarily 1.Sponsoring 2.Media Rights 3.Sports Venues 4.Club Subsidies 5.High-Performance Sports 6.Sport-Related Injuries 1.Sponsoring 2.Media Rights 3.Sports Venues 4.Club Subsidies 5.High-Performance Sports 6.Sport-Related Injuries household others Study 1 Study 2 Study 3 Private Consumption of Sport Advertisement, Sponsoring & Media Rights Sport Venues Construction & Operation Sport Venues Construction & Operation Secondary Analysis Secondary Analysis The Sport Sector – Overview

6. | Economic Dimension of Sport | 6 © Prof. Dr. H. Preuß The Sport Account Satellite– Overview Source: Calculation of GWS Gmbh, G. Ahlert Private Consumption of Sport Advertisement, Sponsoring & Media Rights Sport Venues Construction & Operation Sport Venues Construction & Operation

7. | Economic Dimension of Sport | 7 © Prof. Dr. H. Preuß Data collection Studies 2) What is the importance of private consumption on the economy? 3) What is the importance of sponsor / advertisements / media rights consumption on the economy? 4) What is the importance of construction on the economy?

8. | Economic Dimension of Sport | 8 © Prof. Dr. H. Preuß Studies conducted … Private Consumption of Sport Advertisement, Sponsoring & Media Rights Sport Venues Construction & Operation Sport Venues Construction & Operation n = 7,031 CATI consumers n = 10,424 CAWI consumers in 3 waves 2009-2011 n = 7,031 CATI consumers n = 10,424 CAWI consumers in 3 waves 2009-2011 n = 1,500 CATI industry n = 508 CATI sport organisations n = 74/59 CATI agencies/experts 2011 n = 1,500 CATI industry n = 508 CATI sport organisations n = 74/59 CATI agencies/experts 2011 n = 455 CATI community level n = 204 CATI expert interviews + secondary data 2012 n = 455 CATI community level n = 204 CATI expert interviews + secondary data 2012 Study 1 Study 2 Study 3

9. | Economic Dimension of Sport | 9 © Prof. Dr. H. Preuß Overall target of the 3 studies What is the monetary primary impact of sport in our reference year (2008) for the German economy? by consumers, companies and sport organizations as detailed as by differentiating 88 industry branches. … consider imports / exports

10. | Economic Dimension of Sport | 10 © Prof. Dr. H. Preuß Overall method of the 3 studies Methodological steps 1.Categorization (definition of all sports / advertising / rights / sport venues) 2.data collection numbers by a representative samples 3.data collection monetary expenditures / investments by unit 4.calculation of overall expenditures (input) in categories of the 88 branches to be used for the German Input-Output Model

11. | Economic Dimension of Sport | 11 © Prof. Dr. H. Preuß Studies conducted … Private Consumption of Sport Advertisement, Sponsoring & Media Rights Sport Venues Construction & Operation Sport Venues Construction & Operation n = 7,031 CATI consumers n = 10,424 CAWI consumers in 3 waves 2009-2011 n = 7,031 CATI consumers n = 10,424 CAWI consumers in 3 waves 2009-2011 n = 1,203 CATI industry n = 308 CATI sport organisations n = 74/59 CATI agencies/experts 2011 n = 1,203 CATI industry n = 308 CATI sport organisations n = 74/59 CATI agencies/experts 2011 n = 455 CATI community level n = 204 CATI expert interviews + secondary data 2012 n = 455 CATI community level n = 204 CATI expert interviews + secondary data 2012 Study 1 Study 2 Study 3

12. | Economic Dimension of Sport | 12 © Prof. Dr. H. Preuß Study 1: Consumption of households Definitions 1)Sport = 71 types of sport (clustered by consumption) 2)Consumption = based on the broad Vilnius Definition, which includes all categories of consumption included in the statistical and narrow Vilnius definition plus all activities and consumption categories that need sport as an input ( SpEA, 2006 ) Active participation: 32 consumption categories Interest-related: 18 consumption categories

13. | Economic Dimension of Sport | 13 © Prof. Dr. H. Preuß Study 1: Consumption of households

14. | Economic Dimension of Sport | 14 © Prof. Dr. H. Preuß Study 1: Consumption of households Consumption stimulates industry branches… Industy Trade Transport Information Finance Government Services Source: Calculation of GWS GmbH, G. Ahlert

15. | Economic Dimension of Sport | 15 © Prof. Dr. H. Preuß Studies conducted … Private Consumption of Sport Advertisement, Sponsoring & Media Rights Sport Venues Construction & Operation Sport Venues Construction & Operation n = 7,031 CATI consumers n = 10,424 CAWI consumers in 3 waves 2009-2011 n = 7,031 CATI consumers n = 10,424 CAWI consumers in 3 waves 2009-2011 n = 1,500 CATI industry n = 508 CATI sport organisations n = 74/59 CATI agencies/experts 2011 n = 1,500 CATI industry n = 508 CATI sport organisations n = 74/59 CATI agencies/experts 2011 n = 455 CATI community level n = 204 CATI expert interviews + secondary data 2012 n = 455 CATI community level n = 204 CATI expert interviews + secondary data 2012 Study 1 Study 2 Study 3

16. | Economic Dimension of Sport | 16 © Prof. Dr. H. Preuß Study 2: Advertisement, Sponsoring and Media Rights project guidance Definitions 1)Sport = 71 types of sport 2) Sport-related = advertising, sponsoring and media rights defined by criteria. 3) Sponsoring = contracted exchange (and not donations) 4) Advertising = real market communication (and not just information (internet))

17. | Economic Dimension of Sport | 17 © Prof. Dr. H. Preuß Study 2: Advertisement, Sponsoring and Media Rights High performance sport Grassroots Sports Trade Manufacturing Construction Hospitality industry Scientific and technical service Finance and Insurance Information and Communication Energy Health and Social service Other services Input for SAS in mill. by industry branch: In million Euro

18. | Economic Dimension of Sport | 18 © Prof. Dr. H. Preuß Studies conducted … Private Consumption of Sport Advertisement, Sponsoring & Media Rights Sport Venues Construction & Operation Sport Venues Construction & Operation n = 7,031 CATI consumers n = 10,424 CAWI consumers in 3 waves 2009-2011 n = 7,031 CATI consumers n = 10,424 CAWI consumers in 3 waves 2009-2011 n = 1,203 CATI industry n = 308 CATI sport organisations n = 74/59 CATI agencies/experts 2011 n = 1,203 CATI industry n = 308 CATI sport organisations n = 74/59 CATI agencies/experts 2011 n = 455 CATI community level n = 204 CATI expert interviews + secondary data 2012 n = 455 CATI community level n = 204 CATI expert interviews + secondary data 2012 Study 1 Study 2 Study 3

19. | Economic Dimension of Sport | 19 © Prof. Dr. H. Preuß Definitions 1)Sport Venue = location where the 71 sports are performed translates into 59 sport venues 2)Differentiation of costs to be considered investments | operation/maintenance 3)Investor/carrier of costs public | non-profit organisation | for-profit organisation Study 3: Sport venues, construction and operation project guidance

20. | Economic Dimension of Sport | 20 © Prof. Dr. H. Preuß Construction of sport venues, modernisation, maintenance and operation: 22,6 bn., 74% are paid by public authorities For all together 231.441 sport venues and 366.795 km tracks Study 3: Sport venues, construction and operation

21. | Economic Dimension of Sport | 21 © Prof. Dr. H. Preuß => for SSA compilation transformation of the costs into 88 industry branches Study 3: Sport venues, construction and operation operation investment Building construction Bulding operation and Gardening Preparations of construction Civil engeneering Energy …

22. | Economic Dimension of Sport | 22 © Prof. Dr. H. Preuß Overall Results Which branches profit from sport ? a) in terms of gross value added b) in terms of jobs created

23. | Economic Dimension of Sport | 23 © Prof. Dr. H. Preuß Overall Results SAS – European comparison

24. | Economic Dimension of Sport | 24 © Prof. Dr. H. Preuß Overall Results SAS – Composition of the sport-related gross domestic products in Germany (2008) with regard to its demand side related components, in bill. EUR Source: Calculation of GWS GmbH, G. Ahlert households clubs & associations government exports imports

25. | Economic Dimension of Sport | 25 © Prof. Dr. H. Preuß Overall Results SAS – Contribution of individual industries to the sport-related employment in Germany in 2008 Source: Calculation of GWS GmbH, G. Ahlert Industry Construction Trade Transport / Hotel Information Finance State service Sport

26. | Economic Dimension of Sport | 26 © Prof. Dr. H. Preuß Overall Results SAS – Contribution of individual industries to the sport-related gross value added in Germany in 2008 Source: Calculation of GWS GmbH, G. Ahlert Industry Construction Trade Transport / Hotel Information Finance State service Sport

27. | Economic Dimension of Sport | 27 © Prof. Dr. H. Preuß Conclusion In comparison to other European SAS the German SAS is based on primary data collection because public statistics cannot be used. An overall new concept to evaluate these data was developed. Despite limited research budgets the data were: calculated on sufficient samples of the most important categories validated by differentiating organisation (e.g. revenue of one entity must be expenditure of the other) The 3 studies evaluated the primary economic impact of sport (reference year 2008) for Germany targeting a detailed base of 88 industry branches Overall findings show: Sport related consumer consumption is a huge amount (6.6% of all private consumption) Sponsorships and advertisements in grassroots sports contribute more than that of high performance sport Most investments for sport venues and their operation is spent for central sport facilities and stems from public resources Many different industries benefits from sport expenditures and create 4.4% of all jobs in GER Sport related gross value added 2008 in GER was 3.3%

28. 5 Thank you for your attention | Economic Dimension of Sport | 28 © Prof. Dr. H. Preuß Prof. Dr. Holger Preuß Johannes Gutenberg-Universität Mainz Studies coordinators: Household Consumption:Christian Alfs Sponsoring and Media : Iris an der Heiden, Frank Meyrahn (2hm) Sport venues: Iris an der Heiden, Frank Meyrahn (2hm) Satellite Account Sport:Gerd Ahlert (GWS) all projects in cooperation with Gerd Ahlert (GWS) financed by BMWi, BMI, BISp Villnius, 01.10.2013