If there’s one thing that is certain in life, it’s that this region loves sport. Whether that’s team sports such as Football, Rugby or Cricket, or solo endeavours like running or golf, we love to see our teams competing at the highest level or our friends and colleagues putting their best foot forward. But what many fail to think about is the value of these sporting events to the North East economy and particularly the leisure economy.
It’s hard to put definitive figures on just what the leisure industry gains from these events, but research and analysis for some of the biggest events and clubs have shown some significant numbers. Over just one weekend, the Great North Run generates somewhere in the region of £30M of additional revenue in the region, including increased hotel occupancy at 94% and an increased ARR of £166. The Rugby League Magic Weekend, which returns to Newcastle this year for an unprecedented 7th year, is expected to generate over £8M and has a similar impact on occupancy and ARR for the hotel sector. From the games hosted in the region in last year’s Rugby League World Cup, revenue of circa £13M was estimated. Much of this spend is taken by the wider leisure economy from accommodation and food and beverage sales.
Football is of course the biggest sporting money spinner for the region (after all who doesn’t love the beautiful game, C’mon the Toon). A report in 2019 from accountants EY estimated that Newcastle United alone provided £236M of gross value added (GVA) to the region’s economy and this number is likely to have increased since the club’s recent takeover and success in the Premier League. When you add to this the contributions from Sunderland AFC and Middlesbrough FC, the money generated in the region from football is not insubstantial, and a large slice of that will be matchday revenue for licensed premises around the grounds and in town centres.
Cricket is a much smaller player in this game, but still adds a significant number to the total. Figures collated by Durham County Cricket Club in 2013 suggested that the hosting of ODI games (and at that time Test Matches), together with County games, one day cup games, and Twenty20 Cricket generated about £20M for the regional economy.
Whilst team sports no doubt create a great atmosphere and significant matchday revenue, they’re not the only sporting contributors. With over 110 golf courses in the region, including Championship Courses such as Close House and The Northumberland Club and hotel courses such as Matfen, Slaley and Rockliffe Halls, the North East is a great place for golfing holidays and corporate events, which add a significant contribution in terms of hotel nights sold and food and beverage sales.
It’s not just about live sport, though. Televised sport plays a huge part in generating revenue for licensed premises. Recent research by app Fanzo (which allows users to find pubs that are showing live sport on TV) indicates that the Six Nations Rugby is the second most popular event (with 44% of respondents saying they planned to watch a match in the pub). Second only to the FIFA World Cup. The survey found that despite football’s dominance, the Six Nations is a bigger draw to the pub than the Champions League Final (43%), the FA Cup Final (39%) and the Premier League (33%). The FIFA World Cup is still undoubtedly the biggest player, especially last year’s unusual winter world cup. On the first matchday featuring England and Wales, sales in pubs rocketed by 60%, which was bettered by the figures for England Vs Wales, where sales were up 70%. The biggest payday however was for England’s last 16 match against Senegal, where 28.5M pints were sold across the UK, equating to an average additional 166 pints per venue compared to a typical weekend.
So, lets raise a cheer for our sporting heroes and celebrate the revenue they generate for the industry, as well as the medals and trophies they win.