Following the Prime Minister’s confirmation that the UK will leave not only the EU, but also the single market and most likely the customs union, those in the sport have been analysing the potential impact of Brexit on the sector as a whole.
In particular, the trade of sporting goods looks set to be hit in the short term by currency depreciation when the immediate effects of Brexit are expected to see the pound fall while prices of imported goods rise. Then, in the long term, by additional trade barriers and tariffs on imported products such as clothing and footwear.
For participants and clubs, who already spend a large amount of money on imported goods, this could be a big hit. However, for UK producers, the fall in the pound may provide opportunities elsewhere. As UK goods become more price competitive in external markets, we could see more exporting of home grown sports products.
Outside of trade, it is likely that sports services will also be impacted negatively by Brexit. The intention to leave the EU and the Single Market means UK service providers will find it hard to offer sports services in the EU, and similarly, UK sports organisations may find it more difficult to find service providers with EU specific expertise.
Much of this is still speculative and will depend on how negotiations for Brexit (due to start in March this year) are handled. However, the recent assertion by Halfords that buying a bike will be more expensive due to Brexit seems like a precursor to the overall changes we can expect going forward.
If you have any queries on what the changes will mean in practice for your club, please call our dedicated helplines below:
- Call 08448 240 432 for our dedicated helpline; or
- email us at [email protected]
Chartered Standard Clubs
- Call 0191 211 7799; or
email us at [email protected]