The media often describes youth sports as a recession-proof industry. Families facing economic downturns are more likely to cut back in other areas than limit their children’s ability to play and grow.
Participating in youth sports has short and long-term benefits for a child’s physical, mental, and social well-being. Investment in the youth sports industry also has knock-on effects on other economic areas, such as tourism and dining. All these elements combine to create an industry that demonstrates continual growth despite global uncertainty.
With this growing investment, what steps should organizers and clubs holding indoor and outdoor tournaments take to protect from unexpected financial losses?
Unbridled growth
Sports travel and tourism are among the fastest-growing segments in youth and amateur sports and recreation. Investment has led to success stories like the Grand Park Sports Complex in Westfield, Indiana. With a decade of operations, the complex now delivers $3 million in profit annually and attracts more than 3 million visitors per year. Covering 400 acres, it boasts over 30 soccer fields and 26 baseball diamonds, has a massive events center, and serves as a training camp for the Indianapolis Colts.
Schools similarly invest in youth sports, with secured budgets and flourishing local teams that need uniforms or other supplies to keep playing. Families also fund these activities, sacrificing eating out, vacations, and more to ensure their children stay active.
Also read: Protect Your Youth Sporting Event With Cancellation Insurance
Youth sports are a net positive
Parents of athletes understand youth athletics are not just games; they can transform their children’s lives and futures. By participating in youth sports, children experience reduced stress levels, increased confidence and self-esteem, and less anxiety and depression.
They also benefit the local community in unexpected ways. For instance, large sporting facilities:
- Promote physical and mental well-being that results in a reduction of healthcare costs totaling up to $28 billion per year
- Serve as community hubs that drive the hospitality, real estate, and dining sectors in the local area
- Contribute to a strengthening of the local labor market
Understanding physical health benefits
According to the Centers for Disease Control and Prevention (CDC), physical activity has massive benefits for children between 6 and 13. Some include:
- Coordination: Improved hand-eye coordination and other motor skills boost endurance and strength
- Cognition: Improved problem-solving and cognitive performance leads to higher success in education
- Health: Reduced risk of illnesses such as cancer, diabetes, and more
- Bones: Strengthened bone density, muscles, tendons, and ligaments, leading to better mobility in the near term as well as in a child’s future
- Sleep: Better sleeping habits, which children need to recover from activity and perform at their best in school
These factors combined make for a happier child who also sees improvement in their education and future career prospects.
Youth Sports Event Cancellation Insurance
Given the extensive benefits of youth sports, parents and schools will continue to invest heavily in ensuring children can use local facilities for regular exercise.
While this represents a potential for higher revenue for organizers and clubs holding indoor and outdoor tournaments and events, risk is involved. Cancellation of planned events can happen at any moment due to extraneous circumstances such as weather. From simple rainstorms to an early winter, the weather can occasionally make it impossible for outdoor and even indoor activities to continue.
As such, clubs and organizers should invest in McGowan MPA’s Youth Sports Event Cancellation Insurance to prevent financial losses. If an event is unexpectedly canceled, rescheduled, or otherwise disrupted, insurance coverage steps in with support, including:
- Irrevocable expenses (minus any revenues or savings from expensed items that can be used again)
- Additional expenses from rescheduling or those otherwise incurred to reduce losses
- Optionally, any reduction in net profits if the event had taken place
Contact an expert from McGowan to explore your coverage options today.
