The UK is a global powerhouse for sport, home to world-class competitions like the Premier League and Formula 1. To better understand the opportunities and challenges shaping the sector, we spoke to 50 sports organisations, including leading football clubs and motorsport teams.

Talent and workforce challenges in UK sport

Recruitment pressures and skills shortages

Workforce challenges are front of mind, with 90% of the businesses we spoke to  finding it challenging to recruit new staff over the last 12 months, a concern echoed in our Media Industry Outlook.  The reasons are familiar: a limited talent pool, widening skills gaps, tighter regulations and financial constraints. These challenges aren’t unique to sport, but they’re felt acutely in a sector where performance and precision matter.

As mentioned in our first UK Sports Industry Outlook article , the majority of sports industry leaders reported feeling optimistic. Despite a sense of caution and trepidation short-term, there is a clear belief that as conditions stabilise, confidence will continue to grow. But optimism alone won’t solve the talent challenge. The competition for skilled professionals is intensifying, especially in areas like data analytics and event operations, as clubs look to diversify and meet evolving Profit and Sustainability Rules (PSR).

Diversity and representation in sports leadership

Attracting diverse talent remains a challenge for many organisations. A workforce that reflects a range of backgrounds and perspectives fosters diversity of thought, drives innovation, and ultimately leads to stronger business outcomes. Encouragingly, organisations reported an average of 33.88% female representation on their leadership teams, but more can be done to address this imbalance.

STAT: 24% reported that only 1-10% of their leadership team identifies as female.

Freelancers, contractors and compliance risks

Technology is reshaping the industry faster than skills can keep up, especially in areas like fan engagement platforms, sustainability practices and data-driven decision-making. Our survey found that 82% of respondents are already using Artificial Intelligence (AI) and its wider adoption will likely have a vast impact on the employment landscape.

To meet these demands, sports organisations  we spoke to are turning to mixed workforce models:

• 66% of organisations plan to engage off-payroll workers
• 56% expect to recruit permanent staff

This balance reflects the seasonal nature of sport, where scaling up and down quickly is essential. However, to sustain this model, the industry must remain an attractive destination for top talent.

Specialist freelancers and contractors offer flexibility and expertise, but they also bring challenges. Employment status remains a grey area, with risks around tax compliance, regulation and legal exposure. For individuals, the lack of benefits such as pensions, paid leave and job security can make roles less appealing, particularly in a competitive market. These pressures often drive organisations to look abroad for talent, introducing further complexities around right-to-work and tax.

Redundancies and financial pressures

The search for balance between flexibility and stability isn’t without consequences. Alongside greater reliance on freelancers and seasonal staff, many organisations have also turned to redundancies. Of the 50 organisations surveyed, only one reported avoiding job cuts in the past year, a clear signal of the financial and operational pressures shaping the sector, from fluctuating revenues to shifting sponsorship landscapes. While adjustments to workforce size may be unavoidable, repeated redundancies can damage morale and weaken the industry’s ability to attract and retain top talent. It is imperative that sports organisations balance short-term cost management with long-term sustainability.

Seasonal and casual employees can also lead to other challenges, such as National Minimum Wage (NMW) compliance. Event staff (such as security and hospitality) are often paid at NMW, but risks such as unpaid working time, uniform requirements and deductions from pay are evident within these populations. HMRC has named multiple professional football clubs for NMW breaches.

The tough landscape for R&D claims  in sport

Research and Development  (R&D) is increasingly vital for sports organisations, not just at the top level but across the entire sector. However, the industry appears to be facing growing challenges when it comes to eligible claims.

Our recent survey found that the majority of respondents who submitted an R&D claim to HMRC in the past 12 months had these retrospectively challenged, resulting in repayment. In fact, only 27% of respondents had their claims approved, a contrast to the results in our Media Industry Outlook.

There is scepticism around sports clubs claiming R&D, with recent media coverage ‘naming and shaming’ football clubs over non-eligible claims. The message is clear: organisations need to tighten their documentation, clarify the eligibility of activities and seek specialist advice to navigate an increasingly complex regulatory landscape.

That said, there are strong and legitimate grounds for R&D claims in sport. Innovations in medical and recovery techniques, digital fan engagement and stadium and pitch infrastructure can all qualify, provided they meet HMRC’s eligibility criteria. Crucially, the work must be carried out by the club itself rather than outsourced to third parties, ensuring compliance and credibility.

Looking beyond football, Formula 1 and motorsport showcase the UK as a global hub for technological innovation. The majority of teams are based in ‘Motorsport Valley’, the South East and Midlands regions of England, where cutting-edge R&D is driving advancements in engineering, performance and sustainability. The arrival of new entrants such as Audi and Cadillac, who are investing in UK development centres, further cements this position while delivering significant economic benefits to local communities.

How quality information shapes decision-making in sports organisations

Accurate, up-to-date management information is vital for any business to understand its true financial position, and sport is no exception. Having reliable data at hand allows clubs and organisations to move quickly on investment opportunities, manage risks and make informed operational decisions.

Yet many struggle. Our survey found that over 60% of respondents face challenges maintaining timely accounting records, leading to missed deadlines and poor decision-making. In fast-paced sectors such as football and motorsport, having the right support for the finance function, whether in-house or external, is not a luxury but a necessity.

The increasing scrutiny of PSR has also reshaped the timing of player trading and club transactions. Robust management information is essential to ensure compliance and avoid breaching thresholds. At the same time, rising investment, particularly from the US, which now accounts for ownership in more than half of Premier League clubs and is growing across the EFL, makes forward-looking financial planning more important than ever. Clubs need to forecast 2, 5, even 10 years ahead to understand their growth trajectory and protect long-term value.

Whether you’re exploring workforce models, maximising eligible R&D claims or building a sustainable growth strategy, our specialist team can help you navigate the complexities of today’s sports industry.