Page 4 - SPLS 104, Assessment Task 1, Essay 1, DG

has liquidity options and less regulations to follow than a non-profit sport structure. (Advantages
and Disadvantages of For-Profit Companies, 2021)

Examples of profit driven sport structures are things such as Virgin Active, SuperSport, Nike,
Liverpool FC, etc. Although a few of these businesses are accessible by the public, there is a fee that
needs to be paid in order to obtain access, i.e.) a membership fee.
Overall, this does not mean that these two types of sport structures are completely different. They
do have their similarities, especially in terms of the structure of the organization and their
operations. Non-profit sport structures require funding to implement their development or all-
inclusive plans which only requires SROI, similarly to how profit driven sport structures require
revenue as their return on investment. Profit driven sport structures also have non-profit
foundations within the organization, meaning that they can do all of the “non-profit sport structure
activities with that pure intention” but do so at their own expense. (Contemporary Sport
Management (CSM) Sport Industry Sectors Model, 2021)

This is seen within sporting clubs in which the club is operated by the government, but the public is
capable of obtaining access through a membership fee but can develop their skills or be coached.
For example: The Western Province Cricket Club
It would be absurd to fully see these two structures as complete opposites as there are many
operational activities and intentions behind it that lead to development for the sport, athletes and
create an interest for the public but also generates a revenue. Ultimately allowing for more
opportunity for non-profit development projects to be implemented and profit to be made for profit
driven sport structures. The most ideal example would be broadcasting the Olympics. By doing so
you generate profit from broadcasting rights, but you also generate public attention and opportunity
for the sport to be developed in your country through demand.

Therefore, they may be different in nature, the similarities lie closely with the final product of
developing the sporting industry. Sport will not exist without any spectators or competitors.