Melbourne sports clubs tipped to go bust in weeks
Victoria’s community sporting clubs are on the verge of folding if they don’t receive emergency funding after the coronavirus pandemic left a $1.6 billion black hole in the finances of the country’s 70,000 clubs.
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A quarter of grassroots Australian sports clubs are fighting for survival and need funding to avoid folding after being financially crippled by the coronavirus pandemic.
The virus has ripped a $1.6 billion blackhole in Australia’s 70,000 community sporting clubs, sparking fears some Victorian groups could go bust within weeks.
A national study by the Australian Sports Foundation found 1600 clubs were at risk of folding in the next six months unless they secure emergency funding.
The report, to be released Wednesday, warns “hundreds – maybe even thousands’’ of community clubs will not have the funds to survive the current six week lockdown in Melbourne.
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With revenue dried up, the report declared “community sport could take years to fully recover’’ and $1.2 billion of national funding was needed to help clubs survive.
More than $250 million in funding was needed in Victoria to resume club activities.
Australian Sports Foundation chief executive Patrick Walker said: “it’s not good news’’.
“You’ve got a six week lockdown in Victoria which has led to the total cancellation of winter competitions, statistically there must be many Melbourne clubs that are going to be close to the wall,’’ he said.
He said the problem was equally bad in regional and rural areas already hit by bushfires, floods and droughts.
“The fear is without help they will disappear and that would be a devastating blow to the Aussie way of life and to towns,’’ he said.
“There are towns saying ‘our sports club is all we’ve got, this is it and if that club goes under the community is potentially going to die’.
“So we cannot as a nation allow thousands of community clubs to go under because they fill a huge and important social role.’’
The report found about $300 million was needed nationally for clubs “most at risk’’ in the next three months and a further $400 million required to keep those at risk in the next six months afloat.
Small Victorian clubs needed $10,000 on average to survive but larger groups required a $30,000 lifeline.
The national average was $12,600 for small clubs and $26,800 for bigger groups.
The report also raised concerns about mental and physical health and forecast a drop in participant and volunteer numbers.
Mr Walker said clubs had lost revenue such as member fees, sponsorships, canteen and bar takings and fundraising drives but still had costs such as rent, insurance, maintenance and power bills.
He said donations, government funding, rent and bill discounts or extensions could help clubs out of hard times.
“We’re not expecting a $1 billion cheque from anybody, the world doesn’t work that way, but we do really need everybody that cares about this to come together.’’
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