KEY POINTS:
Sports administrators are concerned the effects of the economic downturn could see fewer people participating on parks and fields next year.
Despite the easing of the Official Cash Rate, looming tax cuts and the declining cost of petrol, there are concerns the downturn could have a detrimental effect
on sports clubs, schools and patronage at matches.
Yesterday, the National Basketball League's 10-team competition was on tenterhooks as Otago, Canterbury and Hawke's Bay were all struggling to secure the funding they needed to guarantee their futures next year.
Basketball New Zealand chief executive Dale Stephens said the national body could not fund professional teams, each of which requires roughly between $300,000 and $400,000 to operate in the league.
"It's a combination of yes it's hard to get sponsors, it's hard to forecast what their revenue for their gate takings is going to be, and we also have a downturn in money coming from the charitable trust because of the downturn in the use of pokies.
"People won't have the money to spend to take out the partner and kids, pay for parking, pay for burgers, it's not just the ticket to get through the doors," said Mr Stephens.
"In my view, when times are tough financially the first thing that goes in people's spending is on entertainment.
"They pay their mortgage, food and petrol and stick to those core household requirements, and discretionary money isn't spent on sport."
Auckland Hockey Association executive manager Rob Baron was also wary of the flow-on effect that less discretionary income would have. He said the association received funding from SPARC but it also relied heavily on funds from charitable trusts.
"I am very fearful that next year we are going to have some difficulties," said Mr Baron. "ASB Trust was anticipating a 40 per cent decrease for distribution. It has a significant effect on organisations like ourselves."
It costs between $300 and $400 for a year's membership at one of Auckland's nine affiliated clubs.
Most of the region's 4000 players have to front up with the cash and also face the cost of uniforms, hockey equipment, shoes and travel.
Auckland Secondary Schools Principals association president, Peter Gall, said while it was too early to say if school sports were seeing children dropping out because of costs, it would be interesting to see how expensive sports such as rowing would fare.
SPARC chief executive Peter Miskimmin conceded that sport and recreation were a "discretionary spend" but he was hopeful people would see their value.
