Olympic summer keeps sports clubs afloat as insolvencies fall

 
Kasmira Jefford
Follow Kasmira
THE NUMBER of sports clubs and facilities collapsing into administration has fallen by a third in the year since the 2012 Olympic summer, figures out today show.

Research from R3, the insolvency trade body, found that the number of companies – from tennis clubs to snooker halls and gyms – that entered into insolvency procedures fell to 82 in the year to June, down from 123 the previous year.

Sports-related insolvencies are now 42 per cent lower than they were five years ago, when the UK entered recession.

Liz Bingham, president of R3 said: “Regular British sporting success, as well as the feel-good glow of the Olympics, may well have encouraged both children and adults to try new sports, join local teams, or keep on going with their gym membership.”

However she added that despite the drop in corporate failures, many clubs are still under pressure as consumers continue to cut back on discretionary spending.

“In this context, any boost that clubs have received from the Olympics is particularly welcome,” she said.