Thinking of Buying a Sports Centre in Australia? Here Are 3 Vital Questions to Ask
Australia’s sports and recreation facilities industry, which includes sports centres, gyms, arenas, and community venues, generated $2.4 billion in revenue in 2025 across more than 1,500 enterprises, employing over 22,800 people nationwide.
The sector has rebounded strongly after pandemic disruptions, fuelled by record attendances, women’s sport expansion, and major infrastructure investment ahead of the 2032 Brisbane Olympics. Demand continues to grow from both spectators and participants, with venue operators embracing digital innovation and multipurpose programming to boost profitability and community engagement.
1. How Diverse and Reliable Are the Centre’s Revenue Streams?
Why It Matters:
Sports centres thrive on a combination of membership fees, event bookings, and casual participation. Centres with diversified revenue sources can better manage seasonal variations and maintain steady cash flow.
What to Check:
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Revenue composition – Spectator events account for 40.6% of total industry income, while sports participants and members contribute around 44% combined, showing the importance of multi-segment engagement.
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Facility utilisation – Operators increasing community bookings, corporate events, and casual sports usage report more stable income.
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Non-sporting activities – Many venues now host concerts, festivals, and community events to maximise annual utilisation.
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Government contracts – Centres managed through local councils or public-private partnerships often have reliable funding support.
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Seasonal balance – A good mix of indoor and outdoor facilities helps smooth usage throughout the year, particularly in regions affected by climate or school terms.
2. What Level of Investment or Upgrade Will Be Needed to Stay Competitive?
Why It Matters:
Facility quality and modernisation determine customer satisfaction, safety compliance, and the ability to host larger-scale events. The most successful sports centres integrate technology, sustainability, and user experience into their operations.
What to Check:
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Digital infrastructure – Smart systems for ticketing, lighting, and booking management are now standard. Major venues are introducing facial recognition access and app-based ordering to enhance convenience.
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Facility condition – Check for recent refurbishments and compliance with the National Construction Code (NCC), which governs safety, accessibility, and energy standards.
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Sustainability measures – Energy-efficient lighting, water recycling, and solar installations can significantly cut operating costs.
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Maintenance costs – Depreciation expenses have been easing as the sector moves from expansion to maintenance-focused operations, though upkeep remains critical for profitability.
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Future projects – Areas like Western Sydney and South-East Queensland are attracting large-scale investment due to population growth and sports demand. Centres located near these precincts can benefit from new infrastructure.
3. How Stable Is the Business’s Relationship with Local Councils and Sporting Bodies?
Why It Matters:
Government and community partnerships underpin much of the sector’s financial stability. Many facilities are operated under lease or management agreements with councils or trusts that influence pricing, access, and long-term planning.
What to Check:
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Ownership and lease terms – Many centres operate on public land or under subsidised council arrangements with low or nominal rent, keeping costs manageable.
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Funding support – Government grants remain vital for upgrades and operational sustainability, especially for community-run facilities.
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Local engagement – Strong ties with sports clubs, schools, and associations ensure consistent usage and grassroots participation.
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Regulatory compliance – Confirm adherence to the Work Health and Safety Act 2011 and the Disability Discrimination Act 1992, which cover safety, accessibility, and inclusion requirements.
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Event hosting relationships – Connections with major sports organisations or entertainment promoters can unlock premium bookings and long-term contracts.
Ready to Invest in a Thriving Sports Centre Business?
With strong government backing, rising health awareness, and expanding demand for community and event spaces, sports centres remain a resilient investment opportunity in Australia.
Success depends on diversified income, facility modernisation, and strong partnerships that align with local community and sporting priorities.
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