Financial sustainability and profitability of high performance training centres

Abstract

High Performance Centres (HPCs) in South Africa are seen as a fairly new discipline, although these centres have been in operation internationally for much longer. In the South African SPORT context, the Sport Science Institute of South Africa (SSISA) opened its door in 1995, being the first of its kind in South Africa. Furthermore, universities in South Africa are under immense pressure to be self- sustainable and to rely less on government funding and generate more third-stream revenues. University HPCs are seen as strategic assets to the university, but generally do not receive continuous direct funding from the universities. The onus rest on these HPCs to be sustainable and even profitable, with retained earnings being used for capital improvements and additions, as well as general operational expenses of the centres. The aim of this research is to establish whether commercial, private, government-operated and university HPCs can be financially sustainable and profitable. To reach the aim, variance analyses were completed of the financial ratios of university HPCs compared to non-university (consisting of commercial and government-supported centres) HPCs, as well as between HPCs in the Northern compared to the Southern Hemisphere.

Keywords: High Performance Centre; University; University Sport; Profitability; Financial Sustainability; Financial Ratios.