Public, Private and Voluntary sector…

? ? ? ? Public, Private and Voluntary sector… ? ? What does it all mean? ? ? ? ? ?

There are lots of facilities in your area Each will be owned and run in one of three different ways You will learn what these three types of ownership are and how they relate to one another

Private Organisations • A company or organisation owned by a single person or a group of people • The main aim of these types of organisations is to make money for the owners or people who have invested in the company • These organisations are “demand-led” because they usually only provide activities that are likely to generate a profit.

Continued… • Examples of Private Sporting organisations include health clubs and gyms – look at the “Esporta” case study on page 14 of the text book • Memberships and fees at these clubs can be expensive • Private organisations are less likely to provide “minority sports” or cater for groups of people who are unlikely to generate much profit for them • This is called “operating in specific markets with specific user groups”

Continued… • Private sector sporting activities include; retail (sports shops), gambling, spectatorsport (professional sports clubs) and sports for participation (Golf clubs for example) • Private sector companies are often “Public-limited companies” (Plc.’s). This means that members of the public can invest in the company by purchasing shares • Depending on how successful the business is, the value of the shares can increase or decrease • These shares are traded on the Stock Exchange

Public Organisations • Public sector facilities are owned and maintained by local councils • The money to pay for this system comes mainly from taxes • People pay a “subsidised rate” to use the facilities – this means that the charge they pay only covers part of the cost of facility’s running costs. The rest of the cost is paid (subsidised) by council money from taxes

Continued… • Councils do not legally have to provide sports facilities for a community • The main aim is not to make profit, but facilities are usually expected to “break-even” • If facilities lose money, or no money is available councils can decide to close a facility

Continued… • So the main aim is not to make profit – but to provide a service for the community • Many different activities will be catered for, in order to suit as many groups of people as possible • “Extended usage” of facilities involves opening longer hours, at weekends and during school holidays to provide for as many users as possible

Voluntary Organisations • These are often clubs, set up by unpaid volunteers to provide sporting opportunities for people in the local community • A club will usually have a committee to make decisions about the running of the club • Voluntary clubs usually have to hire facilities as they do not have their own; they often rely on Public and Private organisations for this

Continued… • Members pay fees to keep the club running • This might be in the form of weekly/monthly subscriptions • The aim is for “social inclusion” – helping all groups to have access to sports provision

Are there any partnerships between the sectors? • A coach who runs their own private business might be hired by a voluntary club or a public sports centre • A voluntary club might hire facilities from a public organisation • A public sports centre might have a Bar which is operated as a private business

Public, Private and Voluntary sector…