SERVICE INDUSTRIES SURVEY 2004-05

A survey of businesses/organisations engaged in sports and physical recreation services was conducted in respect of the 2004-05 financial year. It is expected that it will be conducted again in 2014.

At the end of June 2005, Sports and physical recreation clubs, teams and sports professionals (ACLC Class 332) was the industry which had the greatest number of organisations (2,649). It also had the highest employment (22,216 persons) and the highest level of income ($1,884.1m). However, it was one of two sports industries which recorded the lowest profit / surplus margin for 2004-05 (3.7%), the other being Horse and dog racing (2.7%, ACLC Class 311).

The industry with the largest operating profit / surplus margin was Sports and physical recreation support services (ACLC Class 334) with 15%. The next highest profit/surplus levels were recorded by Other sports and physical recreation venues, grounds and facilities (ACLC Class 322) with 8.1%. This industry reported an operating loss of $18.9m for 2000-01, however, this was turned around into a profit of $90.1m in 2004-05.

The number of males employed exceeded the number of females for Horse and dog racing (ACLC Class 311), Sports and physical recreation administrative organisations (ACLC Class 331) and Sports and physical recreation clubs, teams and sports professionals (ACLC Class 332). The number of females employed exceeded the number of males for Health and fitness centres and gymnasia (ACLC Class 321), Other sports and physical recreation venues, grounds and facilities (ACLC Class 322) and Sports and physical recreation support services (ACLC Class 334). The industry with the highest employment for males at the end of June 2005 was Sports and physical recreation clubs, teams and sports professionals (ACLC Class 332) with 12,890 persons. Health and fitness centres and gymnasia (ACLC Class 321) had the highest employment for females with 11,362 persons.

11.1 SPORTS AND PHYSICAL RECREATION SERVICES, Summary of operations by industry and profit status - 2004-05
		Horse and dog racing	Health and fitness centres and gymnasia	Other sports and physical recreation venues, grounds and facilities	Sports and physical recreation administrative organisations	Sports and physical recreation clubs, teams and sports professionals	Sports and physical recreation support services
Businesses / organisations
	For profit (no.)	759.0	*777.0	872.0	-	825.0	1 774.0
	Not for profit (no.)	359.0	47.0	145.0	1 147.0	1 824.0	*127.0
	Total (no.)	1 119.0	*824.0	1 016.0	1 147.0	2 649.0	1 900.0
Employment at the end of 2005(a)
	Males (no.)	*9 826.0	5 509.0	*9 309.0	6 084.0	12 890.0	6 333.0
	Females (no.)	6 719.0	11 362.0	10 005.0	4 535.0	9 326.0	*8 571.0
	Persons (no.)	*16 544.0	16 871.0	19 341.0	10 619.0	22 216.0	14 904.0
Total income ($m)		1 556.3	679.4	1 109.8	1 531.0	1 884.1	582.0
Total expenditure ($m)		1 515.5	649.4	1 020.3	1 461.7	1 815.1	496.6
Operating profit for before tax(b) ($m)		*41.3	*30.3	90.1	*70.9	70.6	*85.7
Operating profit margin(b) (%)		2.7	4.5	8.1	4.6	3.7	14.7
* estimate has a relative standard error of 25% to 50% and should be used with caution
- nil or rounded to zero (including null cells)
(a) During the last pay period ending month indicated.
(b) Includes capital funding.
Source: Sports and Physical Recreation Services, 2004-05 (cat. no. 8686.0)

Net distributions from TAB authorities to horse and dog racing organisations were $689.0m which was 44% of their total income for 2004-05 of $1,556.3m. Training fees contributed a further $211.5m (14%) to this total.

For health and fitness centres and gymnasia, the main income source was membership and competition fees of $535.1m. This was 79% of the $679.4m total income. A further $46.4m (6.8%) came from casual playing fees.

Casual playing fees were the largest source of income for other sports and physical recreation venues, grounds and facilities. These fees contributed $216.1.m or 20% to the total income of $1109.8m. At $185.8m (17%), Membership and competition fees was the next largest income source for other sports and physical recreation venues, grounds and facilities followed by rent, leasing and hiring ($104.9m or 9.4%).

The total expenses of horse and dog racing organisations for 2004-05 were $1,019.9m. Prize money and trophy expenses of $491.8m accounted for the largest share (48%) of this figure. Labour costs of $315.3m contributed another 31%.

For health and fitness centres and gymnasia, labour costs were the biggest expense. They contributed $270.5m (42%) to total expenses of $649.4m. Labour costs were also the largest expense for other sports and physical recreation venues, grounds and facilities. At $321.2m, these costs accounted for 32% of total expenses.

11.2 HORSE AND DOG RACING AND SPORTS AND PHYSICAL RECREATION VENUES, Summary of income and expenses - 2004-05
		Horse and dog racing	Health and fitness centres and gymnasia	Other sports and physical recreation venues, grounds and facilities
		$m	$m	$m
INCOME
	Net distribution from TAB authorities	689.0	-	-
	Training fees	211.5	-	-
	Admission charges	36.2	0.8	29.8
	Membership fees	27.4	535.1	185.8
	Casual playing fees	-	*46.4	216.1
	Sales of food and beverages	145.1	*15.8	*132.5
	Rent, leasing and hiring	35.2	*16.5	*104.9
	Other income	411.9	64.8	440.7
	Total	1 556.3	679.4	1 109.8
EXPENSES
	Wage and salaries	266.9	237.9	278.7
	Other labour costs	48.4	42.6	42.5
	Total	315.3	270.5	321.2
	Purchases	108.3	23.3	97.6
	Prize money and trophy expenses	491.8	-	-
	Rent, leasing and hiring expenses	28.4	110.6	114.7
	Depreciation and amortisation	-	36.1	84.2
	Other expenses	76.1	218.9	402.6
	Total	1 019.9	649.4	1 020.3
Operating profit		41.3	30.0	90.1
Operating profit margin (%)		2.7	4.5	8.1
* estimate has a relative standard error of 25% to 50% and should be used with caution
- nil or rounded to zero (including null cells)
Source: Sports and Physical Recreation Services, 2004-05 (cat. no. 8686.0)

Together, the three main income sources of sports and physical recreation administrative organisations contributed nearly half (49%) of their total income. Television and other broadcasting rights ($255.1m); sponsorship and fundraising ($248.8m); and membership and competition fees ($238.6m) accounted for 17%, 16% and 16% respectively of total income of $1,531.0m.

The three main sources of income for sports and physical recreation clubs, teams and sports professionals were sponsorship and fundraising, membership fees, and sales of food and beverages. Sponsorship and fundraising income of $422.4m contributed 22% to total income of $1,884.1m. This was followed by membership fees with $360.2m (19%) and sales of food and beverages with $241.6m (18%).

Important sources of income for sports and physical recreation support services were sports and physical recreation coaching, training or instructing ($325.3m) and casual playing fees ($90.6m). These contributed 56% and 16% respectively to the total income of $582.0m.

The largest expense item for sports and physical recreation administrative organisations was $352.4m in labour costs. This contributed 24% to the total expenses of $1,461.7m. At $310.9m (21%), grants, distributions and affiliation fees paid to other organisations were also a major expense.

The largest expense item for sports and physical recreation clubs, teams and sports professionals was labour costs. At $688.2m, these costs contributed 38% to total expenses of $1,815.1m. Purchases were the second largest expense item at $208.3m or 12%.

Labour costs were also the largest expense item for sports and physical recreation support services. At $198.1m they accounted for 40% of total expenses of $496.6m. Another major expense was rent, leasing and hiring of $48.8m (9.8%).

11.3 ADMINISTRATION AND SERVICES TO SPORT, Summary of income and expenses - 2004-05
		Sports and physical recreation administration	Sports and physical recreation clubs, teams and sports professionals	Sports and physical recreation support services
		$m	$m	$m
INCOME
	Admission charges	165.8	177.4	0.2
	Membership fees	238.6	360.2	10.6
	Casual playing fees	-	92.5	90.6
	Sales of food and beverages	33.7	241.6	18.1
	Rent, leasing and hiring	23.0	45.5	20.4
	Sponsorship and fundraising income	248.8	422.4	11.3
	Sports and physical recreation coaching, training or instructing	-	31.2	325.3
	Television and other broadcasting rights	255.1	-	-
	Funding from government	188.1	25.2	17.1
	Other grants, distributions and affiliation fees	175.3	188.8	5.4
	Other income	202.6	299.3	83.0
	Total	1 531.0	1 884.0	582.0
EXPENSES
	Wage and salaries	310.8	594.5	171.3
	Other labour costs	41.6	93.7	26.8
	Total	352.4	688.2	198.1
	Purchases	49.2	208.3	29.1
	Prize money and trophy expenses	61.0	20.0	2.1
	Rent, leasing and hiring expenses	49.0	57.3	48.8
	Depreciation and amortisation	45.0	92.2	23.5
	Grants, distributions and affiliation fees paid to other organisations	310.9	31.8	21.6
	Other expenses	594.2	717.3	173.4
	Total	1 461.7	1 815.1	496.6
	Operating profit	70.9	70.6	85.7
	Operating profit margin (%)	4.6	3.7	14.7
- nil or rounded to zero (including null cells)
Source: Sports and Physical Recreation Services, 2004-05 (cat. no. 8686.0)

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