Is prioritisation of funding in elite sport effective? An analysis of the investment strategies in 16 countries

Abstract Research question: This paper explores the extent to which nations prioritise elite sport funding; whether such nations are more successful than those whose funding is more diversified; and, if the sports that receive the most funding are also the most successful. Research methods: Data on public expenditure for elite sport programmes (2011/2012) were collected on a sport-specific basis in 16 nations (n=445 funded sports). The Herfindahl index and concentration ratios of the four/eight most funded sports (CR4/CR8) are used as proxies for prioritization. Success was measured using top 3 and top 8 places during the Olympic Games and World Championships. Descriptive analysis and linear regression are applied to identify the relationship between the distribution of funding and success. Results and findings: Generally, all sample nations are prioritisers. Nations with smaller total elite sport budgets tended to prioritise more. There is a slight negative association between the distribution of funding within a country and subsequent success, indicating that the sample countries that prioritise more tended to be less successful. Sample nations that diversify their funding more, are found to be successful in a wider range of sports. In addition, the data illustrated only low allocative efficiency for some nations. Implications: The study produced ambiguous conclusions that prioritisation as a deliberate strategic choice is an efficient way to invest funding. The findings have important implications for high performance managers and suggests that a more diverse resource allocation policy may help to avoid unintended negative consequences. Keywords: Targeted funding; elite sport policy; allocative efficiency; prioritisation; SPLIS