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Analysis and Recommendations for the Management of the
Comprehensive Community Sports Club in Japan from a
P
erspective of the Report of MECSST
Yuichi Manda
Department of Applied Japanese, Aletheia University
Abstract
Purpose: "Comprehensive Community Sports Club" is recognized as the key to supporting the development of lifelong sports and is expected to be continuously operated. At present, however, the club management faces various problems, and there is an urgent need for improvement. this article analyzes the club's issues and propose solutions for the development of future lifelong sports. Methods: As a research methodology, the study uses document analysis, and its main documents are research reports by the Ministry of Education in charge of sports promotion policy, research reports, newspaper topics, and other reports. Conclusion: Recommendations for intangible elements: (1) The club should set appropriate participation fees and dues to improve low internal revenue sources. It should also secure such financial resources as business income, grants and subsidies, commissioned business income, and sponsorships. (2) The club should provide varied and attractive sports programs to increase membership. It should actively engage in public relations to raise awareness of sporting clubs. Recommendations of tangible elements: Using the public–private partnership system, the club should manage sports facilities that can be operated stably and continuously to improve lack of space. For these issues and the club’s continued development, the club should become a nonprofit (NPO) organization, which status would provide legal capacity and help raise the club’s social credit.
Keywords: sports promotion policy, sports management, the public– private partnership system
通 訊 作 者 ： 万 田 裕 一
E-mail： [email protected]
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1. Introduction
The system of post-war Japanese sports promotion has been mainly supported by schools, companies, and the government. However, in response to the 1993 bubble collapse, as companies shifted to shareholder-oriented management, they withdrew from part of the system. As a result, the conventional sports promotion system was forced to shift to a new system, centered on local communities (Ishii, 2006). In 1995, the Ministry of Education founded the “Comprehensive Community Sports Club,” which is community-based and aims to be voluntarily and proactively managed by local residents. Aggressive club activities were highly expected to contribute to sustainable promotion of sports and community revitalization. In this situation, the “Sports Promotion Basic Plan (2001–2011),” formulated in 2000 (Ministry of Education, Science and Culture [MESC], 2000), assumed to develop at least one or more clubs in each municipality by 2010. Consequently, the club spread rapidly throughout Japan, and was founded in more than 80% of cities by July 2018 (Ministry of Education, Culture, Sports, Science, and Technology [MECSST], 2019).
On one hand, the club is proceeding in quantitative development, but on the other hand, quality improvement of the clubs is insufficient. At the club’s founding, it received a subsidy for financial support and thereby conducted its activities. However, by the subsidy’s end, many community clubs had financial difficulties (Nagatani, Yanase, & Umegaki, 2005). In addition, clubs that adopted a vertical division administrative work system had difficulty continuing to operate as a result of personnel transfers and placement changes.
For sustainable future development, the club must overcome operational issues. Therefore, this research analyzed problems the club faces, and proposed solutions. To clarify the club’s problems, analysis is divided into intangible and tangible elements. Intangible elements include financial issues, membership, and human resources; tangible elements include physical
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facilities. As research methodology, the study uses document analysis, and its main documents are the report by MECSST. It is an organization that has mainly advanced sports administration. Therefore, in this study, we will mainly analyze the reports created by MECSST.
The following is a brief description of the materials used in this paper. MECSST (2001a, 2001b, 2001c) have been prepared as a guide for reference for people who are planning to create sports clubs nationwide and those who already run the club with the cooperation of people who set up and operate the clubs and academic experts. MECSST (2009) points out the improvements required for the club to develop in the future, which was prepared by an expert council on the clubs. The council was established to examine the current situation and issues of the clubs and to examine the future direction of the clubs. MECSST (2019) surveys the actual conditions and issues of the clubs. a questionnaire survey of the clubs in the country is adopted as the survey method in this survey. The number of clubs surveyed is 3,445, the number of valid responses was 1,867, and the valid response rate was 54.2%.
2. Background of the Comprehensive Community
Sports Club’s establishment
In 2000, MECS (2000) announced the “Basic Sports Promotion Project” with three principles for sports promotion: (a) improvement of the regional sports environment toward realization of a lifelong sports society; (b) comprehensive improvement of international competitiveness; and (c) promotion of cooperation with lifelong sports, competition sports, and school physical education sports. To achieve principle (a), establishment and development of the Comprehensive Community Sports Club was advanced throughout Japan.
The background of the club’s establishment is the change in Japan’s sporting environment and the blocking of community sports. Japan has
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supported four types of sports clubs: school, work, community, and private. Sports in schools and workplaces have so far played a central role in improving the level of competitive sports and the development of sports culture (Ministry of Education, 1998a). However, the sports environment at schools and workplaces began to decline, influenced by social changes, for example, the aging population, aging of school club advisors, and companies’ deteriorating performance during the recession (Matoji, Takemura, & Shirai, 2016). Therefore, as a new entity for sports activities, the importance of sports clubs rooted in communities has increased.
Meanwhile, existing community sports clubs have been in a state of blockage. In the area’s many clubs, which includes juvenile sports teams, only the logic of winning or losing prevailed. For that reason, naturally, the same sport with the same group was conducted throughout the year, so that the club became a practice center for external games (Yamamoto & Nakanishi, 2014). In this way, the community sports club’s activity was extremely closed. As a breakthrough measure in this situation, the Japanese have begun to take notice of Comprehensive Sport Clubs in Europe, where sports enthusiasts with various characteristics, including children, elderly people, and disabled people, can participate in multiple events.
3. Income Structure of the Club
A Comprehensive Community Sports Club is operated on community residents’ initiative. Residents are expected to create an environment for their sports activities in their area, and independent management of operating costs should be conducted without relying excessively on support from governmental administration. In this section, therefore, I analyze issues of clubs’ income structure and propose solutions.
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3.1 Present Situation
The MECSST (2019) survey shows clubs’ operating expenses status as follows. As of 2015, clubs with an annual budget less than $9,400 USD accounted for 35.0%, and those with $27,000 USD or less accounted for about half of all clubs (56.1%). Thus, clubs that operate with small budgets occupy a large percentage of all clubs. Meanwhile, clubs with $90,000 USD, or more, accounted for 19.9%, thus demonstrating clubs’ bipolarization in annual budgets. In addition, 89.4% of clubs collect membership fees; the average monthly fee is $8 USD, and 51.5% of clubs have an average monthly fee of $2 USD or less. Obviously, then, many clubs collect very low membership fees. However, 14.9% of clubs charge $9 USD or more, so that, clearly, membership-fee setting is also polarized.
Because the Comprehensive Community Sports Club is required to be self-sustaining, it should be entirely funded through self-financing: business revenue from the sports program and membership fees (MECSST, 2009). However, the notion of the beneficiary paying—that is, receivers support part or all of supply costs for public goods and services (Mano, 1999)—has not penetrated club members’ thinking, contrary to government expectations. Many club members oppose paying any more than a small facility fee for sports activities (Ryuichiro, 2007). Certainly, this is an obstacle to dues collection.
MECSST (2019) surveys that 39.6% of clubs had a self-finance rate of 91 to 100%; 19.7% had a rate of 71 to 90%; 19.7% had 51 to 71%; and 12.7% had 51 to 70% in 2018. Nearly half, 28.1%, had a self-finance rate of 50% or less. Furthermore, 56.7% of clubs cited “securing financial resources” as an issue. Clearly, many clubs cannot meet their need for income and rely heavily on administrative support. One reason for clubs’ low self-financing rate is low consciousness of the cost burden for sports services (Nagazumi, et al., 2003). Therefore, membership and participation fees are set at very inexpensive levels, and many Comprehensive Community Sports Clubs run on
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subsidies from the administration.
3.2 Recommendations I: Setting appropriate membership
fees
As previously mentioned, an actual decline in clubs’ self-financing rates is an issue. To improve this situation, appropriate membership fees must be established, and the following three methods exist for doing so (Kotler & Andreasen, 2007):
(1) “Cost orientation” means calculating all expenses for the club’s operation and setting the membership fee to cover them. To some extent, estimates must include a surplus for advertising, facilities maintenance and repair, emergencies, and so on.
(2) “Demand orientation” means establishing, through a preliminary questionnaire or interview survey, the amount that users can spend, but attention must be paid to the fact that members often respond with low amounts because they are unaware of actual club costs.
(3) “Competitive orientation” means setting an entry fee by considering the balance between services and prices of other, competing clubs. Because cultural classrooms, for instance, study schools and English conversation classes, can become competitors in addition to private fitness clubs, appropriate price setting based on members’ needs is required.
Which method of setting a membership fee is appropriate? Membership fees are best based on “cost orientation” (Mano, Matsuoka, & Harada, 2010). If fee setting is biased toward demand orientation, members are likely to believe that sports costs are low, and club organizers fear that members’ views on price setting might be correspondingly low. And to some extent when calculating “cost orientation,” a surplus must be added. If income and expenditure are plus or minus zero, club management becomes unstable due to inability to respond adequately in unexpected circumstances. However, club participants are highly likely to oppose pricing based on cost orientation. As previously mentioned, members’ see sports services’ cost burden as very
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low. Therefore, participants must be convinced that members’ bearing the actual financial burden for clubs’ voluntary operation is necessary, and club organizers need to persuade participants enthusiastically.
3.3 Recommendations II: Securing financial resources
other than a membership fee
To operate club activities stably, securing diversified financial resources is important. Considering each community’s actual circumstances and the Comprehensive Community Sports Club is meaningful for establishing membership fees and membership income. For Comprehensive Community Sports Club resources, the following should be considered: business income, grants and subsidies, commissioned projects income, and sponsorship from enterprises in addition to membership income. Each of these financial sources is explained below (Kotler and Andreasen,2007).
(1) Business Income. Voluntary projects include dispatch of leaders to school club activities and administrative programs, sales of original goods for sporting goods, consultation on health and sports technique improvement, welfare services such as elderly persons’ day care, eating and drinking services such as cafes.
(2) Grants and subsidies. To the extent that the club’s independent autonomous management is not impaired, the club can use a variety of grants and subsidies. For instance, “TOTO,” a sports promotion lottery, was introduced in 2001 to secure financial resources necessary for sports promotion. Its objectives are (a) developing of an environment where everyone can be closely involved in sports; (b) improving the environment for enhancing top players’ international competitiveness; (c) support for international sports activities; and (d) improving qualities of training coaches.
According to MECSST (2019) in 2018, 44.6% of clubs “have never received a TOTO grant”; 45.0% “have previously received a TOTO grant”; and 10.5% are “currently receiving a TOTO grant.” In 2017, these percentages
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were 42.8% for never received; 43.7% for have previously received, and 13.5% for currently receiving a grant (MECSST,2018). Thus, about 50% of clubs have not received subsidies. While promoting clubs’ use of TOTO, the government should also improve the TOTO system’s ease of use.
(3) Commissioned projects income. This type of income is obtained by operating and managing public sports facilities (MECSST, 2001a). Not only can income benefits, but also the club’s activity base can be secured. In addition, supporting and operating sports events held by local public bodies and sports organizations is possible (MECSST, 2001a).
(4) Sponsorship from enterprises. In addition to sponsorship money, the offer of sports gear, goods, and human resources can be cited as sponsorship from enterprises. First, we need to understand that both the club and the company experience a win-win situation. However, the difficult economic situation makes obtaining sponsorships very difficult if they are based merely on the club’s contribution to society. In addition to simply seeking donations from companies, club organizers must present them with sponsorship’s concrete benefits, which include: (a) opportunities for sales promotions at club events, (b) preferential use of company names and logos at events, (c) preferential advertising placement in clubs’ public relations magazines and other materials (MECSST, 2001b).
Overall, the main financial problem faced by clubs is the low self-finance rate. If the proportion of self-financed resources is low and clubs receive much government assistance, their voluntary management becomes difficult. To improve such a situation, appropriate resetting of membership fees, probably with a price increase, becomes crucial. Because assurance of stable income is essential for club development, low financial funds present another problem. To that end, securing a variety of financial resources is necessary, for instance, corporate sponsorship money and commissioned projects income.
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4. Club Membership
For clubs to operate continuously and stably, recruiting and retaining members is crucial. If a certain number of members do not gather, realizing the club’s ideals of “multifarious, multi-generational, and multi-oriented activities” becomes impossible (MECSST, 2013). Additionally, if the proportion of club fees to all financial resources decreases and individual financial support rises because of decreased membership, local, autonomous, independent club management becomes difficult. In this section, I analyze clubs’ membership problems and propose solutions.
4.1 Present Situation
According to MECSST (2019) questionnaire, 40.6% of all clubs recognized “recruiting and retaining members” as a future issue. Clearly, many clubs have recruitment problems, and ways to improve membership recruitment include, for example, (a) providing attractive programs based on local residents’ needs, (b) raising their awareness of clubs, and so on.
Attractive club activities actually being performed include the following (MECSST, 2019): (a) child-rearing support: sports activities in which parents and children can participate together, (b) collaboration with schools: providing instructors and facilities for sporting events that the school cannot hold, (c) health guidance: activities to promote local residents’ health, (d) regional revitalization: cooperating with companies and universities to conduct regional revitalization through sports, and (e) collaboration with other clubs and sports organizations: establishing a network with other clubs in neighboring areas and implementing cooperative projects. In this way, organizers work not only within their own clubs, but also collaborate with other clubs, private companies, and universities to open new areas of activity. Next, I consider what other attractive activities are available.
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4.2 Recommendations I: Introducing Attractive Club
Activities
Attractive sports programs depend on the community’s situation— especially residents’ needs—and sports leaders’ competence. For that reason, the Comprehensive Community Sports Club should periodically investigate those needs. Examples of distinctive activities are presented below (MECSST, 2001c).
(1) Providing activity programs appropriate to members’ needs. Once members join a club, it should aim to retain them for a lifetime. Therefore, as ways of life change with age, activity programs should correspond to members’ various ages—in activity purpose, skill level, and needed capabilities, so that members can continue to be active in the club.
(2) Providing activity programs for health and physical fitness. To emphasize the significance of continuous sporting activity and exercise, the club should hold health checks and perform physical fitness measurements. Too, this will lead to club activities’ safety.
(3) Providing programs even for beginners. The club should create an environment where people who do not do sports and exercise on a daily basis also want to participate in activities. For that reason, the club should develop and provide positive programs such as classes and events for beginners, so they do not burden their bodies, but can feel exhilarated by the activity.
(4) Holding intra-club sports competitions. For members who are strongly competitive, plan and hold sports competitions.
(5) Providing intergenerational exchange programs. Intergenerational exchange generally refers to “activities conducted by people of different generations to interact with one another and deepen their understanding of each other’s life culture and values.” Since clubs have members of various ages, they can offer programs that promote, cross, and deepen intergenerational exchanges.
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their members’ sense of belonging and solidarity. To that end, clubs can offer seasonal recreation, for example, skiing, camping, cherry-blossom viewing, and Bon festival attendance programs.
(7) Providing cultural activities programs. To respond to a wide range of residents’ needs, clubs should provide activity programs such as pottery making, cooking, flower arranging, and conducting tea ceremonies. Provision of a wide range of activities, including cultural programs, will lead to increased membership.
(8) Holding activities in which local residents, other than members, can participate. Providing activities in which local residents, other than club members, can easily participate will not only further activate the club, but also help local residents understand its activities and perhaps desire to become members.
(9) Holding seminars and workshops. To nurture residents’ feelings of club ownership, organizers should hold lectures that can deepen knowledge and understanding of the club’s ideas.
Local residents have various hobbies, tastes, ages, genders, and physical conditions, so the club’s activities must appeal and be easily accessible to everyone in the area. In particular, proposing activities interesting to those not currently participating in any sport or sports program is necessary. Furthermore, proposing activities and programs that disabled people and those with illness can enjoy is also important.
4.3 Recommendations II: Improving Awareness of Clubs
According to a 2008 survey on recognition of the Comprehensive Community Sports Club conducted by the Sasagawa Sports Foundation, 2.7% of people “well know” about the clubs; 12.5% “know”; and 15.8% have “heard” about them; but well over half the respondents 59.1% did “not know” about them (MECSST, 2009). Clearly, the general public’s awareness of clubs is not very high.
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encouraging participation. Therefore, continuing activities to increase club awareness is important. Furthermore, to gain local residents’ social trust and to ensure the club’s stable management, citizens must widely recognize the club’s purpose and activities. Public relations activities to increase awareness of clubs include the following.
(1) Publication of a club magazine or newsletter. Regularly issuing a
newsletter will help provide repeated information to members and to local residents, and this will lead to raising social trust in clubs. In 2010, as a commemorative project for the 100th anniversary of the founding of the Japanese Sports Association, contests for club “activity landscape” and “information magazine” were held. This activity reaffirmed the importance to clubs of public relations activities.
(2) Publication of a club brochure. A club brochure can introduce clubs’ purposes, activities, methods of enrollment, and so on, particularly for residents who wish to join.
(3) Use of electronic media. On the Internet, a club’s homepage can provide information, including its annual schedule and events, and recruitment of sports leaders and volunteer staff. In addition, the page should make it possible to apply for membership, transfer the membership fee, reserve the facility, and register for activities, among other functions.
According to a study analyzing awareness of the Comprehensive Community Sports Club, many residents knew of clubs’ existence through informational magazines and information from friends (Matsunaga, 2005). Going forward, it will be necessary to continue raising awareness, while also paying attention to media. Furthermore, lectures and explanations should be provided to local residents, often through various local organizations. Conveying information on clubs through such direct communication activities is very important.
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5. Activity Facilities of the Club
To succeed, clubs need a secure, comfortable sports environment for their members. They also need space that can be operated steadily and continuously to help ensure the club’s development. If the club cannot secure a location to house its activities, increasing the number of members and enjoying club activities will be difficult, if not impossible. In addition to such sports facilities as a pool, playing fields, and a gymnasium, club activities require a clubhouse and an office. In this section, I analyze physical facility problems confronted by the club and propose ways to ameliorate them.
5.1 Present Situation
According to 2018 survey (MECSST, 2019) on types of club facilities, first, 37.9% used school physical education facilities; second, 49.8% used public sports facilities; 2.6% used private sports facilities; but only 1.9% used self-owned facilities. In 2017, these percentages were similar: 48.2% used school facilities; 40.4%, public facilities; 2.8%, school and leisure facilities; 1.8%, private sports facilities; and, again, 1.7% owned their facilities. Clearly, many clubs rely heavily on school physical education facilities, but, of course, school sports clubs also use these facilities, so community clubs have difficulty scheduling activity times (Ministry of Education, 2009a).
5.2 Recommendations: Entering into the Designated
Manager System
To secure facilities, a club may become the sports facility’s operator. Prior to September 2003, the management and operation of public sports facilities was a “management consignment system” limited to local governments, foundations, and public corporations funded by local governments (Mano, et al., 2010). However, in 2003, the public–private partnership system was introduced. This system allows a group, such as a commercial corporation or a nonprofit organization (NPO) to manage and
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operate public facilities (Andreasen & Kotler, 2007). In 2006, the government issued notice that, according to local circumstances, local governments can designate the Comprehensive Community Sports Club a manager of a public sports facility (Ministry of Education, 2000). Since arbitrary organizations and individuals cannot become designated managers of sports facilities, the Comprehensive Community Sports Club also needs to obtain legal personality, similar to that of NPOs, corporations, associations, and foundations.
If the club becomes a designated manager of a public facility, it can receive a consignment fee (administrative fee of the facility) from the local government. Furthermore, fees for the gymnasium and conference room can be collected from users.
The merit of the club introducing the designated manager system is not just securing offices and activity locations. In addition, the club can ensure voluntary financial resources and steadily implement profitable business by hosting club-sponsored events and classrooms. The club can also employ full-time staff, and this leads to securing management resources required by the club. Therefore, the designated manager system will likely be utilized for club development.
6. Qualifying for Legal Personality
Issues faced by clubs are both tangible and intangible, but one solution drawing attention is the possibility of becoming an NPO. For cost reduction, national and local governments are expecting NPOs as new players supplying public services. As a corporation based on the Specified Nonprofit Activity Promotion Act (NPO Act), an NPO conducts public utility business for non-commercial purposes, gains government approval, and then is registered as an NPO (Cabinet Office, 2012). In recent years, the government has been hoping that becoming NPOs can help resolve clubs’ various issues. As we see below, however, clubs are not very actively becoming NPOs.
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6.1 Present Situation
According to MECSST (2019), the clubs with NPO status accounted for 34.0％ of the total, and 66.6% do not have NPO status in 2018. In 2017, these percentages were 32.8% and 67.2%, respectively. Thus, More than half of clubs do not have obtained NPO status. Regarding intention to qualify for NPO legal personality in 2018, 957 (941 in 2017) clubs were “not willing to qualify”; 232 (272 in 2017) clubs are “willing, but mostly unscheduled”. Thus, many clubs are not aggressive in obtaining NPO status, and acquisition is not expected to increase.
However, acquisition of legal personality would likely contribute to raising clubs’ social credibility, continuity, and transparency of activities. In addition, advantages include easy acquisition of management resources— leaders, management staff, activity facilities, and offices. In the next section, I analyze these advantages in detail.
6.2 Recommendations: Qualifying for NPO legal
personality
The advantage of qualifying for an NPO legal personality include the following.
(1) Social credit. Clubs without NPO status are not required to disclose
income and expenditure statements or business reports; both the organization’s decision-making process and financial management are vague. However, when the club qualifies as an NPO corporation, the club must publish these operational records. Therefore, the contents of club management can be publicly clarified, and the club obtains social credibility (Economic Planning Agency, 2000). The club’s purpose is to contribute to community development, and social credibility is very important for developing activities smoothly.
(2) Legal capacity. If the club itself gains legal capacity, it can conduct contracting acts (Economic Planning Agency, 2000). If the club does not have
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legal personality, it must register its real estate or open a bank account under a club representative’s name. However, if the club has legal status, it can conduct such procedures not by the club representative’s name, but by the club’s name, and because the corporation manages the property, it can operate continuously.
When the club becomes an NPO, its organizers should pay attention to the following points. Yukizane and Shimizu (2003) indicate risks arising from clubs’ acquiring NPO status. First, to obtain NPO status, clubs must often reorganize their structure, which then leads to a distinction between a “regular” member responsible for management and a “general” member who is merely a service user. Consequently, the club’s decision-making can occur quickly, and, at the same time, have the effect of raising regular members’ sense of responsibility and independent management. However, the possibility also exists of increasing the proportion of “customers” who only enjoy the club’s services and take no responsibility. This situation risks deviation from the club’s goal of “all members [being] beneficiaries and suppliers of services.” Thus, reorganization might be necessary for club management’s development, but paying sufficient attention is also necessary, so the problem above does not happen.
7. Conclusion
The Comprehensive Community Sports Club policy began fundamentally to reform provision of sports promotion systems and sports services in the region. And, the policy provides community residents the opportunity to
manage their own club, while aiming to promote sports in the area. So far, many clubs have been established, and their numbers are expected to increase. However, as this research indicates, for clubs to be rooted in the community, many issues still need to be resolved.
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solving intangible issues, clubs should consider diversification of revenue, that is, securing grant money, corporate sponsorships, and as much business income as possible. Too, clubs should establish appropriate participation fees and dues to improve low internal revenue sources. Clubs should also provide attractive sports programs to increase membership, and, in addition, actively engage in public relations to raise residents’ awareness of their existence and offerings.
Tangible issues involve physical activity facilities. Many clubs share public facilities with other sports clubs, so they have limited time for activities. Therefore, using the public–private partnership system, the club should become a manager of sports facilities. Unfortunately, however, solving the problem just by switching club management methods will be difficult. As this study indicates, many club participants have the fixed idea that “sports are free” and lack understanding of the beneficiaries’ burden. Thus, these participants can become a fundamental cause of club issues. In the future, clubs should nourish a sense of ownership among all club members, along with a change in the management method. How can we encourage members to change their consciousness? The answer to this question is a subject for my future research.
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