How To Find the Right Funding for Local Sports Clubs and Leisure Projects

​The benefits of quality sport and leisure facilities, and access to them, are innumerable for public health and community cohesion. But we live in financially challenging times and the sector is facing one of the most difficult periods in decades.

Across the UK, local councils remain the largest funders and operators of public sport and leisure services, responsible for thousands of leisure centres, pools and community sports venues.

Yet with energy costs still significantly higher than pre-pandemic levels and public sector borrowing at sustained highs through mid-2025, many authorities are struggling to balance rising operational costs with the need to keep vital community facilities open.

The question on the minds of many decision makers is where will the next wave of investment come from?

The Funding Landscape In 2025

Sport England continues to play a leading role in distributing capital funding for sports facilities through its Uniting the Movement strategy and Place Needs Classification (PNC) model, which prioritises investment in areas with the lowest activity levels and greatest need. Sport England’s place-based investment is delivered through three complementary strands:

1. Place Deepening (intensive, long-term support in selected local systems to tackle inactivity and inequalities);
2. Place Expansion (scaling what works into more areas with tailored resource and facilitation); and
3. Place Universal (open access to tools, guidance and lighter-touch funding for all places).

On capital specifically, Sport England supports both new build and refurbishment, covering modernisation of ageing stock, accessibility improvements, compliance and safety, energy efficiency and decarbonisation (including pools and plant), adaptation of spaces for multiple uses, and activation of outdoor environments. Awards are typically co-invested with local authorities and partners, with expectations around match funding, robust need and demand evidence (informed by the PNC), strong community engagement, inclusive design, and measurable health and community outcomes.

Alongside Sport England, the UK Shared Prosperity Fund (UKSPF) remains active for 2025–2026, offering local investment opportunities linked to wellbeing, regeneration and community resilience. Although the Levelling Up Fund has closed for new bids, existing allocations, which must be spent by March 2026, are still shaping projects nationwide, particularly in towns where sport and leisure provision aligns with broader placemaking goals.

To ease short-term financial strain, the Retail, Hospitality and Leisure Business Rates Relief Scheme (2025/26) is also providing temporary support for eligible properties, helping councils and operators manage costs while developing longer-term funding strategies.

What Funding Options Are Available?

Funding for leisure centres and sporting projects essentially falls into the following categories:

1. Public Works Loan Board - The majority of local authority leisure projects are still predominantly funded by Council borrowing, financed as a result of savings from improved revenue performance as a result of the investment. However, in recent years increased borrowing rates have made this investment route more challenging.
2. National grants and capital funds – These include Sport England, the Football Foundation and National Lottery Community Fund programmes
3. Community Investment Levy (CIL) - A fixed charge on new developments, collected by local authorities to fund local infrastructure such as leisure facilities
4. Section 106 Agreements – Site specific agreements where developers fund or provide infrastructure to mitigate the impact of new investment
5. Local government and devolved national funds – Funds such as UKSPF allocations, Pride in Place and Public Health budgets which support wellbeing outcomes
6. Partnership and Co-Investment Models – Where local authorities partner with leisure trusts, universities or private sector investors to share delivery risk and generate community benefit

In addition to the above, Local Government Re-organisation presents opportunities for authorities to invest in a rationalised leisure estate to help the new unitary and combined authorities to meet their new statutory objectives.

In many cases, successful funding applications are underpinned by clear evidence of social value, economic impact and community need. This triumvirate of elements is needed to demonstrate how investment supports wider policy outcomes such as public health improvement or local regeneration.

What’s Needed To Secure Funding

Competition for leisure investment or funding for local sports clubs is intense and success requires more than enthusiasm for the project. Funders expect to see:

1. A strong business case grounded in data and evidence
2. Clear demonstration of community need and inclusivity
3. Strong alignment with national and regional strategies (e.g., Sport England’s Uniting the Movement)
4. Financial sustainability, showing how facilities will remain viable post-funding

Preparing these elements requires a combination of technical, financial and strategic expertise to ensure the proposal is not only compelling but compliant with funding frameworks.

How FMG Consulting Can Help

Navigating the sports funding landscape can be complex. At FMG Consulting, we work with local authorities, Active Partnerships, leisure operators and sports clubs to identify the most suitable funding routes and build credible, evidence-led submissions.

Our team supports every stage of the process, from producing detailed business cases and feasibility studies, to writing and coordinating full funding applications. We ensure that each proposal demonstrates measurable social and economic outcomes, maximising the chance of success and long-term community benefit.

Let us help you understand and navigate the complex world of funding for leisure centres, funding for local sports clubs, and capital funding for sports facilities and ensure your next project secures the investment it deserves. Contact us today!

​Image source - Canva