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SPLS 1 04 Assessment Task 1 Essay
business such as hairdressers, and mostly large
production businesses such as hardware and
technological manufacturers. (Left Image.)

Any organisation including sports clubs such as
WPCC can be a for-profit organisation. It just
simply comes down to the true purpose of the
business’s intentions i.e. For profit or not for profit
as well as their long-term goals.

Moving onto the characteristics of for-profit
organisations, how do they compare to non-profit
especially in terms of sporting structures such as
WPCC? The following article is exceptionally
This Photo by Unknown Author is licensed under CC BY-SA helpful in comparing the two types of sporting
structures through the use of a table I have recreated below. ((PDF) Profit and Nonprofit Sports
Clubs: Financial and Organizational Comparison in Poland, n.d.).

The Characteristics of Non-
Profit and For-Profit Sporting NON-PROFIT FOR-PROFIT
Structures
Sources of Revenue Subsidies, donations, and fees Merchandising, commercial
services
Goals Social and sports related Successful business results/
profit driven
Type of employment volunteers Contracts, employment
agreements
Financing Institutions Public and Private Private

Gathering from all the above-mentioned information on the classification of the two sporting
entities, I would like to open up a topic of discussion by means of a short opiniated essay based
on which of the above type of business is deemed “better” In terms of providing sporting services
to the public? How do these two sporting structures compare and what are their advantages and
disadvantages?

From an internal perspective, a massive risk factor exists for Non-Profit sporting structures. Due to
the fact they receive grants and subsidies in order to set up their facilities and business structure,
they are liable to make sure the money given by the government is well spent and not filtered out
illegally in the process. If the organisation finds themselves in debt and cannot cope with
expenses, because non-profit businesses have unlimited liability, all the assets pertaining to the
organisation can be liquidated including those of the owners to pay back the costs of production.
(Nurudin, 2019) Whereas a For-Profit organisation makes sure that they are covered legally by
terms of a limited liability waiver that protects the individual stakeholders from potential business
failure. This is highly likely as to why non-profit facilities are not state of the art because they have
to watch their cash expenditure to ensure they do not overspend! However, on the flip side, it is
easier for a non-profit sports facility to start up as capitol is granted to them by the government, as
opposed to private businesses who need to source capitol on their own or from investors who in
turn, receive interest.

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