Membership in Nonprofit Sport Clubs: A Dynamic Panel Analysis of External Organizational Factors

Investments in elite sport and sport events are often justified by governments with the trickle-down effect. Theoretically, this effect implies that people are inspired by sporting success, the personality of athletes, and hosting elite sport events to practice sport. However, previous research had difficulties in measuring, modeling, and providing evidence of this effect. The purpose of this study is to examine such external drivers of membership numbers in German sport clubs. This study uses unique data on male memberships from 1970 to 2011 in 12 Olympic sports. Under the control of economic variables (income, work time, gross domestic product [GDP]), the results of dynamic panel regression models show a significant positive effect of hosting a major sport event on the growth rate in memberships in the same year and several lagged effects for stars and sporting success. The results have implications for policy makers and the capacity management of nonprofit sport clubs.