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  • Mitre June 17

Should sponsors receive tax write-offs to benefit grass root sports?

Football News 24/7
Should the Sports Minister responsible for rolling out the Olympics legacy take a leaf out of what is happening in Turkey by giving tax breaks to Sponsors who provide funds for grass roots sports?

A recent Finance Ministry decision on Ziraat Bank Turkey Cup sponsorships in Turkey could lead to tax write-offs of 100 percent for amateur sports organisations and 50 percent for professional organisations. This ruling would cover football at first, but would then also become a benchmark for other sports according to daily Habertürk in Turkey.

The logic is that sponsorship expenditures do not always have a direct correlation with financial gains for the sponsoring company and are more geared toward social benefits; they are therefore deemed separate from commercial branding.

That said, sponsorship spending that contains emblems, logos or brands would not be included in company tax write-offs, as these are viewed as a direct financial benefit to the sponsoring company.

Private funding is essential to build on the Olympic legacy to provide better facilities to improve health and fitness in grass roots sports and this requires consultation between private organisations and the government.

GM

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