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The Active Leisure Industry

Commercial funding of active leisure

  • 3 things to know
  • AS 2

Overview

How private clubs raise income, secondary spend, sponsorship and naming rights, professional clubs, franchises, public–private partnerships, corporate memberships and the growth of budget gyms.

What you need to know

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Key term

What is commercial funding in active leisure?

Key term

How does a private health club raise income?

Key term

What is secondary spend?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is commercial funding in active leisure?

    Model answer

    Commercial funding comes from private businesses and paying customers rather than taxation. Commercial providers invest in order to make a profit.

  2. 2

    How does a private health club raise income?

    Model answer

    A private health club charges joining fees and monthly memberships. Extra income comes from personal training, café sales and treatments such as massage.

  3. 3

    What is secondary spend?

    Model answer

    Secondary spend is money customers spend beyond their entry fee or membership, such as on food, drinks and merchandise. Secondary spend can add greatly to a facility's profit.

  4. 4

    How does sponsorship fund active leisure?

    Model answer

    A sponsor gives money, equipment or services in return for publicity for its brand. Sponsorship funds kits, events, teams and facilities.

  5. 5

    What are naming rights? Give a Northern Ireland example.

    Model answer

    A naming rights deal lets a company pay to put its name on a venue. Ulster Rugby's Ravenhill ground was named Kingspan Stadium under a naming rights deal in 2014, and since 2025 it has been the Affidea Stadium under a new deal.

  6. 6

    How do professional sports clubs raise money commercially?

    Model answer

    Professional clubs earn income from ticket sales, broadcasting rights, sponsorship and merchandise. Successful clubs also earn prize money and player transfer fees.

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