Developing Sport Satellite Accounts in Georgia: Methodological Approach, Challenges, and Perspectives

David Oboladze

Developing Sport Satellite Accounts in Georgia: Methodological Approach, Challenges, and Perspectives

David Oboladze

(PhD) Doctor of Business Administration, Associate Professor at the Georgian State University of Sport Chief Specialist at the Staff of the Sports Committee of the Parliament of Georgia

Abstract

The article is focused on examining the limitations and opportunities that affect the comprehensive assessment of the economic and social significance of sport in a country. Satellite accounts in sport represent a method that enables the evaluation of both the direct and indirect effects of the sports sector on the national economy as well as on social life, employment, and healthcare. The article describes the functional composition of sport, identifies sources of information, and sets standards for data collection. It also presents the principles for calculating value added, revenues and expenditures, employment, and other indicators, along with their induced effects (multipliers), as well as a description of the factors that hinder or facilitate the related processes. The importance of creating sports satellite accounts is emphasized for highlighting the economic and social role and significance of a country's sports sector. Proposed next steps are outlined to enhance the transparency and efficiency of sport reporting and planning systems.

The development of Sport Satellite Accounts (SSA) in Georgia represents a critical step towards a comprehensive understanding of the economic impact of sport within the national economy. SSA offers a specialized statistical framework aligned with the System of National Accounts (SNA), enabling the distinct measurement of sport’s contribution to GDP, employment, and macroeconomic indicators. Globally, the sports industry accounts for approximately 2% of GDP and contributes substantially to employment, yet this sector remains underexplored in Georgia due to the absence of an SSA model. Recent increases in state investment in sport infrastructure and development accentuate the need for robust economic measurement tools such as SSA.

This paper outlines the methodological approach for SSA development, emphasizing multi-sector integration, compliance with international standards (including the Vilnius definition of sport), and the use of diverse data sources ranging from national statistics to administrative and survey data. The creation of SSA involves careful classification of sport-related activities, products, and services, alongside estimating their shares within overlapping economic sectors.

Key challenges identified for Georgia include limited detailed data, the complexity of defining sport intensity within broader economic activities, and resource constraints. Recommendations include international collaboration with experienced SSA-implementing countries, pilot projects on specific sport economic segments, and enhanced data collection methods.

The establishment of SSA in Georgia will enable evidence-based policymaking, effective resource allocation, and strategic promotion of the sports economy, reinforcing sport as a growing mainstream economic sector and valuable contributor to national development. SSA is a vital instrument for quantifying the full contribution of sport across all economic areas to inform policy and investment decisions effectively.

Keywords: Sports Economics; Economic Impact of Sport; Sport Satellite Accounts (SSA); System of National Accounts (SNA)

References

1) European Commission. (2012). Study on the Economic Impact of Sport through Sport Satellite Accounts. DG Education and Culture. (While not the absolute latest, this remains a foundational document for SSA methodology in the EU context).

2) European Commission. (2020). The economic impact of COVID-19 on the sport sector in the EU. Publications Office of the European Union.

3) ECORYS for DG EAC. (2023). Study on the European Sport Model. Publications Office of the European Union.

4) Leontief, W. W. (1986). Input-Output Economics. Oxford University Press.

5) Miller, R. E., & Blair, P. D. (2009). Input-Output Analysis: Foundations and Extensions (2nd ed.). Cambridge University Press.

6) United Nations. (2008). System of National Accounts 2008 (2008 SNA). European Commission, International Monetary Fund, Organization for Economic Co-operation and Development, United Nations, World Bank.

7) Hwang, J., & Kim, H. (2019). An analysis of the Input-Output Table in the Sports Industry of Thailand. KUOJS, 27(1). (Specific example of I-O analysis for a country's sports industry).

8) Pigeassou, A. (2004). The economic impact of sport: Review and critical issues. Journal of Sports Economics, 5(2), 163-177. (Broader review of sport economic impact studies).

9) Weed, M., & Taylor, S. (2010). Sport and Leisure Management: A Global Perspective. Routledge. (May contain discussions on economic impact methodologies).

10) Wicker, P., & Breuer, C. (2012). The economic relevance of sports for municipalities. European Sport Management Quarterly, 12(4), 387-402. (Examples of sub-national level analysis that could involve I-O principles).

11) Deloitte Sports Business Group. (Ongoing). Annual Review of Football Finance. (Regularly updated reports with deep financial insights into football, often touching upon wider economic impacts).

12) Deloitte. (Ongoing). Global Sports Industry Outlook. (Annual reports providing an overview of global trends and financial projections in the sports sector).

13) PwC. (Ongoing). Sports Industry Outlook (various regional editions, e.g., North America, Middle East). (Annual reports focusing on industry trends, investment, and market growth).

14) KPMG Football Benchmark. (Ongoing). Football Clubs' Valuation: The European Elite. (Focuses on club valuations, but often includes broader market analysis).

15) Kereselidze, B. (2020). The Impact of the Sport Industry on the Economy. https://shorturl.at/7UHnN [In Georgian]

16) National Statistics Office of Georgia (Geostat) (2021). "Strengthening the Capabilities of the Statistical System of Georgia" (Expert Mission Report to Support Geostat: "Assessment of Geostat's Capabilities and Existing Difficulties in the Direction of Compiling Sports Satellite Accounts") [In Georgian]

17) National Statistics Office of Georgia (Geostat) (2024). Statistics Development Strategy. Strategy for the Development of the National System of Official Statistics for 2024–2027. https://shorturl.at/FAdLs [In Georgian]

18) Government of Georgia (2024). Government Program "Only with Peace, Dignity, and Welfare Towards Europe - 2025-2028" https://shorturl.at/pozH7 [In Georgian]

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11/10/2025

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