The Business of Sport and Recreation in Canada

There are 33,650 community sport and recreation Organizations in Canada. The majority are not-for-profit organizations. Almost all are actively engaged in the coaching and training of sports and recreational activities and events.

It would appear that almost all Canadian organizations are of not-for-profit formed for the purpose of qualifying to use, sports and recreation facilities and infrastructure belonging to municipalities, provinces and territories, schools colleges and universities. Other incentives they are seeking is to be allowed to receive donations, government grants and players’ subsidies.

The following are highlights of the business model of most not-for-profit sport and recreation organizations in Canada:

1. Annually they receive approximately $400 million plus in direct financial supports and grants from federal, provincial, territories and municipal government
2. They generate revenues from a variety of seasonal membership fees and casual players rates commensurate with private sector commercial business fees and rates.
3. More than 73% of employees working for organizations (coaches, trainers, managers) are volunteers and are not paid for their services
4. They lease existing community sports and recreation facilities mostly from municipalities, provincial parks, schools and universities.
5. They enjoy non-commercial rental consideration for the use of sport and recreation facilities.
6. They do not pay for maintenance of the sport and recreation facilities they are using.
7. They maintain regular business offices and operations
8. The executives and staff are paid (almost) regular commercial level salaries and benefits for their services