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Financial barriers for sports consumption: the dynamics of the income–expenditure relation

Erik Thibaut (Policy in Sports & Physical Activity Research Group, KU Leuven, Leuven, Belgium) (Sport@ThomasMore, Thomas More Kempen–Campus Turnhout, Turnhout, Belgium)
John Eakins (School of Economics, Aras na Laoi (Lee House), University College Cork, Cork, Ireland)
Annick Willem (Department of Movement and Sports Sciences, Ghent University, Ghent, Belgium)
Jeroen Scheerder (Policy in Sports & Physical Activity Research Group, KU Leuven, Leuven, Belgium)

Sport, Business and Management

ISSN: 2042-678X

Article publication date: 13 May 2020

Issue publication date: 2 July 2020

449

Abstract

Purpose

First, the income elasticities are calculated for different levels of income, for both the decision to spend money on sports and the amount of money that is spent. Second, the study researches whether different operationalisations of income (i.e. family versus personal) result in different elasticity values. Third, the effect of sports-specific and non-sports leisure variables on sports participation is investigated.

Design/methodology/approach

A representative dataset of 3,775 adults is used containing a wide variety of leisure characteristics, gathered by means of a face-to-face survey. By means of a Tobit regression model both the determining factors of sports expenditure and the income elasticities are analysed.

Findings

For lower income individuals, a rise in income has a relatively bigger influence on the probability to spend money on sports participation, than is the case for higher income individuals. A positive relationship is found with sex (male), education, number of minutes and disciplines of sports and membership of a socio-cultural organisation, while age, watching TV and attending cultural events have a negative effect.

Social implications

The study provides evidence that income-based segmentation of sports participants could turn out to be an efficient policy tool. By lowering the monetary-burden for lower incomes, it can be expected that participation rates can be raised efficiently.

Originality/value

For the first time the relationship between income and expenditure is explored for different levels of income and for two operationalisations of income. Moreover, the inclusion of non-sports leisure variables allows investigating relationships between sports consumption and other leisure activities.

Keywords

Acknowledgements

This study was funded by the Flemish government, with a focus on sports participation as part of the Policy Research Centre on Sport 2017-2022.

Citation

Thibaut, E., Eakins, J., Willem, A. and Scheerder, J. (2020), "Financial barriers for sports consumption: the dynamics of the income–expenditure relation", Sport, Business and Management, Vol. 10 No. 3, pp. 245-261. https://doi.org/10.1108/SBM-04-2019-0026

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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