Chapter 15: Building the future: investing in sport and physical activity
On this page
- Sources of funding for sport and physical activity in Canada
- Federal government funding
- Sport Canada
- Public Health Agency of Canada
- Other sources of federal funding for sport organizations
- Housing, Infrastructure and Communities Canada
- Participants perspectives on federal funding
- Participants’ perspectives on the funding crisis
- Participants’ perspectives on short-term funding
- Participants’ perspectives on funding priorities
- Participants’ perspectives on National Sport Organizations’ evaluation criteria
- Participants’ perspectives on National Multisport Service Organizations’ funding
- Participants’ perspectives on the Community Sport for All Initiative
- Participants’ perspectives on funding to support Indigenous-led sport
- Participants’ perspectives on the application process
- Participants’ perspectives on a lack of oversight
- Participants’ perspectives on support for athletes
- Participants’ perspectives on support for hosting
- Participants’ perspectives on diversifying federal government funding sources
- Participants’ perspectives on diversifying sport organizations’ funding sources
- Provincial, territorial, and municipal government funding
- Sport funding in other countries
- Reminder of the Commission’s preliminary recommendations
- Creating a stable and sustainable approach to funding Canada’s sport system
- The need to invest in the sport system
- The need to diversify funding for sport and physical activity
- The need to centralize federal funding for sport and physical activity
- The need to improve the application process
- The need to improve the monitoring and auditing of sport organizations
- The need to develop a new funding strategy for sport and physical activity
This chapter examines funding in the sport system. We begin with an overview of the sources of funding for sport in Canada. As previously noted in Chapter 5, amateur sport in Canada receives funding from all levels of government. Here, we examine Sport Canada’s funding programs created to support sport organizations, their athletes and the hosting of sporting events. Next, we describe programs delivered by the Public Health Agency of Canada and Housing, Infrastructure and Communities Canada. We also provide a brief overview of how provincial, territorial, and municipal governments fund sport, and consider how sport is supported in other nations.
Finally, we provide a reminder of the Commission’s preliminary recommendations before outlining our Calls to Action to enhance and improve the funding of the sport system. Throughout this chapter, we share participants’ perspectives gathered before and after the publication of the Preliminary Report, including the feedback received during the National Summit organized by the Commission.
Sources of funding for sport and physical activity in Canada
The Canadian sport system is a complex ecosystem that relies on various sources of funding to support athletes, organizations, events, and infrastructure. Funding for sport and physical activity organizations and programs comes from a variety of government and non-governmental sources.
As we noted in Chapter 5, all levels of government provide funding to support Canada’s sport system. The federal government, through Sport Canada, invests primarily in national-level sport organizations. It also invests in projects and initiatives that promote physical activity through the Public Health Agency of Canada.
The funding that provincial and territorial governments allocate for sport and physical activity varies considerably across the country, as do the mechanisms that are used to distribute these funds. Municipal governments play an equally important role in providing funding and maintaining community infrastructure like arenas, pools, and recreation centres, while often also subsidizing local programming.
Beyond public funding, the Canadian sport system also relies on a variety of non-governmental funding sources. Some National, Provincial, Territorial, and Community Sport Organizations, and some athletes have been effective in securing private funding from sponsorships, merchandising agreements, and corporate and individual donations. Some sport organizations issue tax receipts, which can be helpful in securing donations. Others levy registration fees.
Despite these additional sources of funding, many National Sport Organizations depend on government funding from Sport Canada.Footnote 1755 According to a Deloitte study commissioned by the Canadian Olympic Committee and the Canadian Paralympic Committee, 90% of National Sport Organizations depend on federal government funding as their primary source of revenue.Footnote 1756 On average, government funding represents between 47% and 50% of the revenue of National Sport Organizations receiving government funds.
According to the same study, only a few larger National Sport Organizations operate with minimal reliance on government funding. This is possible because they have other substantial sources of revenue, including membership fees, donations and sponsorships, event revenue, and merchandising agreements. On average, government funding accounts for approximately only 9% of these larger National Sport Organizations’ total annual revenue.
In what follows, we explore in more detail the various sources of funding for sport, starting with the federal government’s funding.
Federal government funding
The Government of Canada supports sport and physical activity through various grants and contribution programs. These grants and contributions are the two principal instruments through which it transfers money to funding recipients, whether individuals or organizations. A grant is generally used for recurring funding, provided the recipient remains in good standing. It is not normally subject to an audit by the department.Footnote 1757 A contribution, on the other hand, is a conditional payment for a specific purpose. It is often larger and comes with a funding agreement, a payment schedule, reporting requirements, and is subject to an audit.Footnote 1758 Whether a funding program issues a grant or a contribution is determined by the terms and conditions of the program as approved by the Treasury Board.Footnote 1759
Federal government funding for sport flows primarily through the Department of Canadian Heritage, via Sport Canada. The Minister responsible for the Department of Canadian Heritage is traditionally accountable for making funding decisions. They can delegate the authority for sport to the Minister responsible for Sport if there is one.
In addition to the funding available through Sport Canada, the Public Health Agency of Canada provides funding for some physical activity and sport participation programs. Through other federal departments and agencies, sport organizations may also obtain project-specific or supplementary funding for initiatives that, while not directly related to sport, assist their organization. This could include, for example, the Canada Summer Jobs wage subsidy that supports the creation of employment opportunities for youth.Footnote 1760
The following sections review Sport Canada’s three funding programs as well as key funding programs from the Public Health Agency of Canada and Housing, Infrastructure and Communities Canada. Charts illustrating these primary sources of federal funding for sport and physical activity can be found in Appendix 12.
Sport Canada
Sport Canada has three funding programs that primarily target sport organizations and individuals operating at the national level of Canadian sport.
- The Sport Support Program supports the development of the Canadian sport system, in alignment with the goals of the Canadian Sport Policy.Footnote 1761
- The Athlete Assistance Program provides direct financial assistance to Canadian high-performance athletes to assist with the financial pressures of training and competition.Footnote 1762
- The Hosting Program assists sport organizations with hosting the Canada Games as well as international multisport and single-sport events in Canada.Footnote 1763
Through these three programs, the Government of Canada has invested a total of $1,383,783,509 over the past five years, with an average of $276,756,702 per fiscal year.Footnote 1764 The Sport Support Program makes up much of this funding. Appendix 13 contains a breakdown of Sport Canada funding since the 2020–2021 fiscal year for each of its programs.
We note that in 2023–2024, approximately 0.016% ($264.5 million) of the Government of Canada’s budget was allocated to sport.Footnote 1765 In 2023, sport represented only a 0.3% share of the Canadian total Gross Domestic Product.Footnote 1766
Sport Support Program ($193.6 million in 2024–2025)Footnote 1767
The Sport Support Program is intended to support the Canadian sport system’s development. It is the most significant Sport Canada funding program for National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes. It also supports grassroots sport through its Community Sport for All Initiative, and Indigenous communities through the Sport for Social Development in Indigenous Communities component. The program aims to support the Canadian Sport Policy’s goals and achieve four objectives:
- increase opportunities to participate in quality sport activities for all Canadians, including under-represented groups
- increase the capacity of the Canadian sport system to systematically achieve world-class results at the highest international competitions
- contribute to the provision of technical sport leadership within the Canadian sport system
- advance Canadian interests, values, and ethics in sport at home and abroad.Footnote 1768
The Sport Support Program is delivered through various components:
- the National Sport Organization component
- the National Multisport Service Organization component
- the Canadian Sport Centre component
- the Community Sport for All Initiative
- the Sport for Social Development in Indigenous Communities component.Footnote 1769
The requirements and expectations of National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes under the Sport Support Program are similar. Therefore, we discuss them together. Following this, we examine the Community Sport for All Initiative and the Sport for Social Development in Indigenous Communities component.
Funding for National Sport Organizations, National Multisport Service Organizations and Canadian Sport Centres and Institutes
The federal government developed a Sport Funding and Accountability Framework to determine which National Sport Organizations, Multisport Service Organizations and Canadian Sport Centres and Institutes were eligible for funding from the Sport Support Program. The first framework was introduced in 1995–1996, with updates being introduced approximately every four years thereafter.Footnote 1770 Version 5 of this framework (2016–2020) incorporated the goals of the Canadian Sport Policy 2012.Footnote 1771
In November 2024, Sport Canada’s new application guidelines for the Sport Support Program were released in conjunction with the Sport Integrity Framework,Footnote 1772 which we address earlier in the section on policies. These new guidelines replaced the Sport Funding and Accountability Framework and were subsequently revised in 2025.Footnote 1773
The Sport Support Program provides both core and project funding to eligible National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes.Footnote 1774
- Core funding supports organizations’ day-to-day operations. It includes amounts provided to targeted National Sport Organizations and Canadian Sport Centres and Institutes based on Own the Podium’s recommendations through the “Enhanced Excellence” and “Next Generation” initiatives.Footnote 1775
- Project funding for organizations covers the cost of one-time activities that support the Canadian sport system and do not require ongoing funding.
Funding received through the Sport Support Program can be applied to a variety of eligible expenses, including those related to the delivery of services and programs like coaching, facility rentals, and equipment purchases. Other eligible expenses include costs related to administration, salaries, translation and language training, travel, legal costs, and the advancement of safe sport. However, there are limits to some of the eligible expenses. For example, funding for a full-time employee’s salary is capped at $115,000 unless the employee is a coach or high-performance director recommended by Own the Podium.Footnote 1776
The current application guidelines state that multi-year funding for organizations will be available to support day-to-day operations.Footnote 1777
Funding through the Sport Support Program is limited to organizations that meet Sport Canada’s definition of a National Sport Organization, National Multisport Service Organization, or Canadian Sport Centre and Institutes.Footnote 1778 For example:
- National Sport Organizations must be either recognized by their International Federation or the International Paralympic Committee, or be a part of a Canadian organization recognized by their International Federation.Footnote 1779
- National Multisport Service Organizations are required to offer programs or services that are nationwide, extending beyond a province or territory.Footnote 1780
- Canadian Sport Centres and Institutes must be members of the Canadian Olympic and Paralympic Sport Institute Network.Footnote 1781
National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes also need to be federally, provincially, or territorially incorporated not-for-profit organizations in good standing.Footnote 1782
Several sports and sport activities are ineligible for Sport Canada funding as per the application guidelines. They include professional or commercial components of sports; motorized sports; games of skill (such as billiards, darts, and electronic games or e-sports); and sports that are related forms, variations or adaptations of recognized sports that are considered as disciplines and not as distinct sports (even if they are organized independently from the recognized National Sport Organization). Competitive activities that are not regulated through a National Sport Organization or governing body are also precluded.Footnote 1783
Since April 1, 2025, all National Sport Organizations must also meet the five governance requirements outlined in the program guidelines to receive funding.Footnote 1784 Under the program guidelines at the time of writing this Final Report, National Multisport Service Organizations are also required to meet these requirements.Footnote 1785 These governance requirements, which Chapter 14 explores in more detail, oblige sport organizations to have the following as a condition of funding:
- a clear business plan and/or strategy
- a diverse, well-trained board of directors that includes athlete representation and oversight committees
- internal financial and risk-management controls
- measures for sharing governance-related documents publicly on their website
- discipline and appeal procedures that include dispute resolution through the Sport Dispute Resolution Centre of Canada.
As a condition of funding, organizations must also adopt the Canadian Safe Sport Program, among other requirements.Footnote 1786 We discuss the Canadian Safe Sport Program in more detail in Chapter 10.
Before considering funding, Sport Canada reviews applications to ensure that the organization, its projects, and project-related expenses meet all the required criteria. Each application is evaluated based on specific criteria by a review committee that compares it with other applications and prioritizes applications according to the funding available.Footnote 1787 This involves an evaluation of:
- the impact of the organization’s activities on the Canadian sport system
- the organizational capacity to undertake the activities
- the requested budget in relation to the expected outcomes.Footnote 1788
These evaluation criteria are further detailed in the application guidelines.Footnote 1789 For example, the guidelines specify that the evaluation committee considers the extent to which the organization’s activities are likely to achieve one or more of the Sport Support Program’s objectives. For National Sport Organizations, this includes a consideration of the extent to which the organization has “a National Team Program to systematically achieve world class results at the highest international competitions” and “a systemic approach to develop and support participants that will positively impact the development of the Canadian Sport system.”Footnote 1790
The extent to which an organization has “reach across Canada’s sport system”Footnote 1791 is a criterion to measure the impact of its activities on the Canadian sport system. However, it is not clear how an organization’s “reach” is defined or measured.
Sport Canada considers several other factors when it prioritizes which organizations and projects receive funding. These include:
- whether a sport or one of its disciplines is part of an upcoming Major Games program (the Olympic and Paralympic Games, the Commonwealth Games, or the Pan American and Parapan American Games)Footnote 1792
- whether sports programming is being delivered to a specific under-represented groupFootnote 1793
- whether sports programming can help to achieve other Government of Canada priorities, as articulated, for example, through the Budget or Speech from the Throne.Footnote 1794
As we discuss in Chapter 5, Own the Podium makes funding recommendations to Sport Canada.Footnote 1795 These recommendations are based on podium probabilities, athlete progress tracking, and identifying the next generation of podium-potential athletes.Footnote 1796 Although it is a common misperception, Own the Podium does not itself fund high-performance sport.
Sport organizations are required to submit a final report detailing the results of their activities to Sport Canada at the end of their project.Footnote 1797 Depending on the conditions of the funding agreement, some must also submit interim reports.Footnote 1798 We understand that Sport Canada reviews previous reports that sport organizations have submitted in accordance with their contribution agreements before releasing funds.
We were told that there are ongoing conversations between Sport Canada and sport organizations as a part of the funding cycle regarding their compliance with their agreements. Additionally, since 2023, Sport Canada has a compliance and accountability function. It is responsible for the enhanced monitoring of funded National Sport Organizations to ensure compliance with the requirements of their funding contribution agreements.Footnote 1799 This includes the implementation of good governance practices and safe sport requirements.Footnote 1800 Failing to comply with the conditions of funding can have escalating repercussions for National Sport Organizations, from additional reporting obligations to financial consequences.
We were advised that a sport organization that is subject to enhanced monitoring must demonstrate improvement by reporting throughout the term of their contribution agreement as an ongoing condition of funding. This process allows clear objectives and expectations to be set for National Sport Organizations when Sport Canada has identified shortcomings and monitors the progress of the corrective actions’ implementation.
Recipients of federal funds may be audited in accordance with their contribution agreement. We understand that the Department of Canadian Heritage may undertake a review or a recipient compliance audit when it deems it appropriate.
In addition to the core funding, the federal government provides time-limited funding for special targeted initiatives. This project-based funding is generally for three to five years. These initiatives have addressed, among other matters, safe sport, inclusion, diversity, and accessibility. This type of funding has also increased funding for Indigenous sport.
For example, in October 2022, the Government of Canada announced renewed funding of $25 million over three years for specific project funding. This was for initiatives aiming to achieve gender equity, diversity, and inclusion at all levels of sport through the Sport Support Program.Footnote 1801 The priority populations for this funding included girls and women, persons with disabilities, Indigenous Peoples, people from Black, racialized, and religious minority communities, 2SLGBTQI+ populations, and newcomers to Canada.Footnote 1802
Community Sport for All Initiative ($10.5 million over 2024–2026)Footnote 1803
As a component of the Sport Support Program, the Community Sport for All Initiative that was announced in the 2021 Budget aims to remove barriers and increase under-represented groups’ participation rates in sport.Footnote 1804 In particular, the initiative supports community programming for Black, Indigenous, racialized, 2SLGBTQI+, low-income people, persons with a disability, newcomers, and seniors.Footnote 1805
Its funding goes to organizations that then administer and disburse project funding to community sport initiatives that advance the program’s objectives.Footnote 1806 To be eligible for funding under the Community Sport for All Initiative, organizations are assessed at both the organizational and project level. Among other criteria, an organization must operate at the national level or have the capacity to reach under-represented groups in multiple jurisdictions.Footnote 1807 This means that an organization does not have to operate in or reach every province and territory to be eligible for funding.Footnote 1808
Projects funded under the initiative are expected to be:
- affordable
- results-oriented (i.e., increasing participation and retention for underrepresented communities)
- focused on organized sport
- green (i.e. have minimal or positive environmental impacts)
- accessible
- available in underserved communities.Footnote 1809
Sport Canada also stated that they would prioritize projects focused on persons with a disability, ensuring that a minimum of 20% of the overall Community Sport for All Initiative budget was allocated to this under-represented group.Footnote 1810
At the time of writing this Final Report, funding for the initiative was expected to end in 2026.Footnote 1811
Sport for Social Development in Indigenous Communities ($24.2 million over 2024–2026)Footnote 1812
Sport for Social Development in Indigenous Communities is a component of the Sport Support Program. Launched in 2019, this component was created by the federal government in response to the Truth and Reconciliation Commission’s Calls to Action. Chapter 6 explores the federal government’s response to the Truth and Reconciliation Commission’s Calls to Action 87 to 91 in further detail.
The three streams of the Sport for Social Development in Indigenous Communities component aim to achieve various social development goals.Footnote 1813 Streams One and Two are targeted toward initiatives that improve health and education, increase employability, and reduce at-risk behaviour in Indigenous communities. The third stream is also known as the Reconciliation and Strength for Indigenous Women, Girls, and 2SLGBTQI+ People through Sport fund. It was created in response to the Calls for Justice from the National Inquiry into Missing and Murdered Indigenous Women and Girls.Footnote 1814
Stream Three has five social development goals: physical and mental health, suicide prevention, sexual trafficking awareness and prevention, safe and healthy relationships, and sexual positivity (2SLGBTQI+).Footnote 1815 Through this stream, Indigenous organizations receive funding to deliver sport and recreation projects in Indigenous communities in Canada.Footnote 1816
The Sport for Social Development in Indigenous Communities component aims to achieve its goals by supporting a variety of sports and physical activities. These can include traditional and cultural sports, as well as physical activities that have a recreational or wellness component.Footnote 1817 Ultimately, it is up to the Indigenous organizations and communities receiving project funding to determine what is appropriate for their needs.Footnote 1818
Funding under Stream One is reserved for the Aboriginal Sport Circle and the 13 Provincial and Territorial Aboriginal Sport Bodies, which are discussed in more detail in Chapter 6. The amount of funding allocated to each is determined based on a funding formula. Appendix 14 provides a breakdown of this funding.
Streams Two and Three are available to Indigenous governments, communities, and not-for-profit Indigenous organizations (either Indigenous owned or operated).
Athlete Assistance Program ($39.5 million in 2024–2025)Footnote 1819
The Athlete Assistance Program is a federal government grant program that provides financial assistance directly to high-performance athletes. It aims to alleviate some of the financial pressures that athletes experience when preparing for and competing in international events while maintaining their academic pursuits or professional careers.Footnote 1820
The support provided through the Athlete Assistance Program can take the form of a living and training allowance, tuition support, or supplementary support.Footnote 1821 Every year, approximately 1,900 high-performance athletes in 90 sport disciplines receive support through this program.Footnote 1822 The amount that an athlete receives for their living and training allowance varies between $1,305 and $2,175 per month.Footnote 1823 With respect to tuition support, a carded athlete (i.e., one eligible for receiving athlete assistance, as we explain below) may receive up to $5,500 per carding cycle with a $27,500 lifetime maximum amount.Footnote 1824 Supplementary support, limited to a maximum of $16,410 per carding cycle,Footnote 1825 may also be provided:
- to athletes who win medals at Major Games
- for Paralympic athletes with high support needs
- to support child dependents
- for moving
- to support new parents
- to assist in the transition to retirement.Footnote 1826
There are two sets of criteria applicable to determine eligibility for funding under the Athlete Assistance Program.Footnote 1827 The first applies to National Sport Organizations and the second applies to athletes. National Sport Organizations must generally receive funding through the Sport Support Program for their high-performance athletes to be eligible for the Athlete Assistance Program.Footnote 1828 The high-performance sport program must meet the national team and high-performance minimum delivery or performance standards evaluation criteria. It must also be receiving funding from Sport Canada through the Sport Support Program.Footnote 1829
To be eligible, athletes must be Canadian citizens or permanent residents. They must also be eligible (as determined by International Sport Federations) and available to represent Canada in international competitions and participate in national team training programs.Footnote 1830 They must also be part of a National Sport Organization’s high-performance program.Footnote 1831
Athletes attending foreign postsecondary educational institutions, including National Collegiate Athletic Association (NCAA) institutions, who are receiving an athletic scholarship, are not eligible for Athlete Assistance Program funding for the months they attend these institutions. This also applies if the National Collegiate Athletic Association affiliated institution is in Canada.Footnote 1832 However, these athletes can still receive living and training support when involved in national team training and competition activities and are not attending the foreign postsecondary institution.Footnote 1833
Athletes in Olympic and Paralympic sports who do not meet National Sport Organizations’ eligibility requirements may still qualify for Athlete Assistance Program support. This is possible if they rank in the top 16 at the World Championships, Olympics, or Paralympics and if their event is in the program of upcoming Olympic or Paralympic Games.Footnote 1834
Some athletes are ineligible for Athlete Assistance Program support.Footnote 1835 This includes those who have signed contracts with professional leagues. However, athletes on contract or who regularly compete in leagues other than the National Basketball Association (NBA), the National Hockey League (NHL), and Major League Baseball (MLB) may be eligible for program support under specific circumstances.Footnote 1836
Funding under the Athlete Assistance Program is available to athletes who meet what is referred to as “carding criteria.”Footnote 1837 The carding process involves the following steps:
- Sport Canada approves eligible National Sport Organizations for funding under the Sport Support Program, then allocates “cards” to these organizations based on sport-specific carding criteria developed and published by the National Sport Organization.
- Athletes who meet the carding criteria are then nominated (or renominated) by their organization for support.
- Sport Canada reviews and approves the nominations, based on the National Sport Organization’s carding criteria and the Athlete Assistance Program policies.
- The nominated athlete completes the application form and signs an Athlete/National Sport Organization Agreement. This agreement must include certain information prescribed by Sport Canada, including:
- benefits available to the carded athlete
- obligations and commitments of the carded athlete and the National Sport Organization
- the duration of the agreement
- the specific Sport Canada and federal government policies that the National Sport Organization and carded athlete must comply with
- the hearing and appeal procedure that will be used in any dispute between the carded athlete and the National Sporting Organization.
The carding cycles are normally 12 months long. Sometimes, the timing of major events might require that the carding cycle be shorter or longer than 12 months. In these cases, an organization may negotiate a shorter or longer carding cycle with Sport Canada.Footnote 1838
Hosting Program ($67.8 million in 2024–2025)Footnote 1839
The Hosting Program provides financial support to sport organizations hosting international sport events and the Canada Games. Its objectives are:
- to strengthen the sport excellence and sport development impacts of bidding on and hosting the Canada Games and targeted international sport events
- to increase access and equity for designated underrepresented groups through contributions to international bidding and hosting events
- to strengthen the economic, social, cultural, and community impacts of supported bidding and hosting projects.Footnote 1840
The Hosting Program supports four different types of Major games:
- International Major Multisport Games like the Olympics and Paralympics, the Pan American and Parapan American Games, and the Commonwealth Games
- International single-sport events like the upcoming 2026 FIFA World Cup or World Championships
- International Multisport Games for Aboriginal Peoples and Persons with a Disability like the North American Indigenous Games or the Deaflympics
- the Canada Games.Footnote 1841
The Federal Policy for Hosting International Sport Events provides the guiding principles of the Hosting Program. Subject to the budget of the Hosting Program and the necessary approvals, the Government of Canada may provide support for:
- two International Major Multisport Games every 10 years
- one large international single-sport event every two years
- 30 or more small international single-sport events each year
- International Multisport Games for Aboriginal Peoples and Persons with a Disability.Footnote 1842
The application process and requirements for each type of event vary. For example, funding applications for International Major Multisport Games must be submitted prior to initiating a hosting bid.Footnote 1843 This requirement does not apply for other international events.
Similarly, general applications can usually be made on an ongoing basis.Footnote 1844 However, for International Multisport Games for Aboriginal Peoples and Persons with a Disability, funding applications must be received by December 31 if payments are sought for April 1 of the following calendar year.Footnote 1845
Eligibility for funding for the North American Indigenous Games is based on a federal–provincial/territorial hosting rotation and a bid process, typically run by the North American Indigenous Games Council or the Aboriginal Sport Circle.Footnote 1846 The level of federal funding is based on a federal–provincial/territorial framework.Footnote 1847 This funding is typically provided to Canadian participants in the North American Indigenous Games, whether hosted inside or outside of Canada. This is normally done under bilateral agreements with provinces and territories through the Sport Support Program.Footnote 1848
In the same way, funding for the Canada Games is based on a federal–provincial/territorial hosting rotation and a bid process, typically run by the Canada Games Council or the host provincial or territorial government.Footnote 1849 The level of funding provided is also based on a federal–provincial/territorial framework.Footnote 1850 Sport Canada provides funding to the Canada Games Council for participants’ travel costs, except for those from the host province or territory.Footnote 1851
Bilateral agreements with the provinces and territories
As we explored in Chapter 5, the federal government supports provinces and territories through bilateral agreements. These are cost-sharing agreements, meaning that provinces and territories match the federal funds. This support is generally provided under the Sport Support Program and the Hosting Program.Footnote 1852
These agreements aim to encourage sport participation and physical activity among children and youth.Footnote 1853 They also provide support to provincial/territorial sport organizations responsible for Indigenous sport and physical activity and seek to increase culturally relevant sport programming for Indigenous children and youth at the community level. These agreements also support travel for Indigenous games such as the North American Indigenous Games.Footnote 1854
Appendix 15 provides a breakdown of the funding amounts that provinces and territories received under the Sport Support Program and the Hosting Program from the 2020–2021 fiscal year to 2024–2025.
Public Health Agency of Canada
As Chapter 5 discussed, the Public Health Agency of Canada’s mandate, as it relates to physical activity, is to share information about and promote the benefits of being active. It also develops guidelines for physical activity and provides information about injury prevention and management in sport and physical activity, including concussion prevention.Footnote 1855 The Public Health Agency of Canada funds initiatives that encourage healthy living behaviours such as physical activity.Footnote 1856
ParticipACTION
The Public Health Agency of Canada provides direct funding to ParticipACTION, a National Multisport Service Organization for the Let’s Get Moving and ParticiPARKS initiatives.Footnote 1857
Since 2018, the Agency has provided $5 million per year to support ParticipACTION’s Let’s Get Moving Initiative. The initiative promotes the benefits of physical activity through public education campaigns, research, and the development of tools and programs to help Canadians become more active.Footnote 1858 We understand that this represents the Agency’s only grants and contributions program fully dedicated to physical activity. At the time of writing this report, this funding is set to sunset in March 2026.
ParticipACTION also received support for its ParticiPARKs program. The program sought to help create a Canada where communities have free access to inclusive and accessible community outdoor spaces.Footnote 1859 The design phase of four outdoor parks was completed in 2024. These parks are located in La Ronge (Saskatchewan), Winnipeg (Manitoba), Brampton (Ontario), and Fredericton (New Brunswick).Footnote 1860
Healthy Canadians and Communities Fund
The Healthy Canadians and Communities Fund supports specific initiatives that address the risk factors for chronic disease.Footnote 1861 Physical inactivity is one of three behavioural risk factors targeted by this program.Footnote 1862 Funding is offered to a wide variety of organizations, including private and non-profit organizations, governments and agencies, Indigenous organizations, health authorities, and schools and universities. Organizations can request $200,000 to $3,000,000 in funding for projects that address these risk factors that are between two and four years in length.
A key condition of the Healthy Canadians and Communities Fund is the requirement to secure “matched funding.”Footnote 1863 This means that applicant organizations must secure an amount equal to their funding request from at least two other sources, either through cash or in-kind contributions.Footnote 1864 While this matched funding does not have to be confirmed at the time of application, 50% of the total matched funding has to be secured before a funding agreement can be signed. The remaining 50% is required before the project’s final year.Footnote 1865
Funding decisions are also based on other requirements, such as the quality of applications, the potential of the project to improve health outcomes, evidence of the need for intervention, and alignment with the program objectives.Footnote 1866
The program also aims to fund a diversity of projects, meaning that decisions take into consideration the project’s location, the communities and populations it will serve, the funding stream,Footnote 1867 and the size of the organization.Footnote 1868
An example of an initiative funded under the Healthy Canadians and Communities Fund is the Canadian 24-Hour Movement Guidelines Impact Project by the Canadian Society for Exercise Physiology. Building on the 24-Hour Movement Guidelines, this initiative intends to help Canadians lead more active lives by increasing awareness and adoption of the guidelines.Footnote 1869 Total Public Health Agency of Canada funding for this project from December 2024 to March 2026 is $551,619.Footnote 1870
Another example is the Physical Literacy for Communities initiative of the Public Health Agency of Canada, which is delivered by the Sport for Life Society (referred to as Sport for Life). The project is designed to support the development of physical literacy in 150,000 children and youth aged 2 to 18 across Canada, beginning in 2022.Footnote 1871 The total Public Health Agency of Canada’s funding for this project from September 2021 to March 2025 was $4,070,663.Footnote 1872
Intersectoral Action Fund
The Intersectoral Action Fund supports policy-level initiatives that target the social determinants of health, including access to environments that promote active living.Footnote 1873
School Health Grant for Youth
The School Health Grant for Youth was a special program designed for young people aged 13 to 19, enrolled in grades 9 to 12. Its purpose was to support students’ ideas to improve healthy living in their school, notably through physical activity.Footnote 1874
Under the School Health Grant for Youth, micro-grants of $1,000 were awarded on a first-come, first-served basis.Footnote 1875 To receive funding, projects needed to meet specific program eligibility criteria.Footnote 1876 Examples of physical activity-related projects funded under this program include a women’s weightlifting club, a school workout club, and a Youth Reconnecting Round Dance (“a school day event that reconnected youth to Indigenous cultures and promoted physical activity with special guests including community Elders and drummers”).Footnote 1877
We were advised that from February 2022 to June 2025, the Public Health Agency of Canada invested $340,000 to support 188 youth-led projects through the School Health Grant for Youth, and that approximately 39% of these projects included a focus on physical activity. We learned that this program received more applications than could be supported.
Other sources of federal funding for sport organizations
In addition to funding through Sport Canada and the Public Health Agency of Canada, sport organizations may secure project or supplementary funding from other federal government departments, such as Women and Gender Equality Canada and Employment and Social Development Canada.Footnote 1878
Housing, Infrastructure and Communities Canada
While funding for athletes and sport organizations is critical, infrastructure funding is another important component of government support for sport and physical activity. It allows for the provision and renewal of the facilities necessary for Canadians to participate in sport and physical activity. These facilities play a vital role at all levels from grassroots community programming to high-performance training and competition.
As we noted in Chapter 7, federal, provincial, and territorial governments, as well as many municipalities, invest in sport and recreation infrastructure. These investments involve funds for the development, construction, repair, or maintenance of sport and recreation facilities, and for purchasing necessary equipment. The federal government provides funding for sport and recreation infrastructure primarily through the Department of Housing, Infrastructure and Communities Canada. What follows is an overview of key infrastructure programs as they relate to sport. Other programs at the federal level also provide funding for sport infrastructure, including programs administered by Indigenous Services Canada.Footnote 1879
Canada Community-Building Fund
The Canada Community Building Fund is a transfer-based program that delivers over $2.5 billion each year to communities across Canada. The federal government transfers funds to the provinces and territories, who, in turn, redistribute it to their communities, who then decide how to invest these funds. Each community has the flexibility to make investments across 19 different project categories. Sport and recreation form 2 of the 19 eligible project categories.Footnote 1880
The renewed Canada Community-Building Fund administrative agreements between the Government of Canada and the provinces and territories came into effect on April 1, 2025, and will be in place until March 31, 2034.Footnote 1881 Across the country, a wide range of sport and recreation infrastructure projects have been supported by the Canada Community-Building Fund. In recent years, the fund has supported initiatives such as building new sport facilities; upgrading arenas or skating rinks; building new multipurpose pads for basketball, volleyball, badminton and pickleball; and replacing turf on soccer fields.Footnote 1882
Investing in Canada Infrastructure Program
The Investing in Canada Infrastructure Program is administered by Housing, Infrastructure and Communities Canada. Under this program, the Department delivers funding to communities through bilateral agreements with provinces and territories. This program uses a cost-sharing model — the federal government contributes up to a specified percentage of costs depending on the type of project.Footnote 1883
The program encompasses several streams, including:
- public transit infrastructure
- green infrastructure
- community, culture, and recreation infrastructure
- rural and Northen communities Infrastructure.Footnote 1884
The program’s Community, Culture and Recreation Infrastructure stream allows the federal government to invest in projects that support upgrades to recreational facilities like arenas, pools, multipurpose sport facilities, and both indoor and outdoor recreational spaces.Footnote 1885 As part of the program, the federal government is expected to provide $1.3 billion through bilateral agreements for community, cultural, and recreational infrastructure.Footnote 1886
Green and Inclusive Community Buildings Program
Although the Green and Inclusive Community Buildings Program is not specifically designed to support sport or recreation infrastructure, it has still provided support for such projects. In 2024, a $500 million top-up was provided to the program, and it was extended until March 2029.Footnote 1887 The program aims to improve the availability and condition of community buildings in Canadian communities experiencing higher needs and who are currently underserved. The program aims to improve energy efficiency, reduce greenhouse gas emissions, and enhance buildings’ climate resilience.
For example, in 2025, it was announced that an arena in Papineauville, Quebec, will undergo significant upgrades with support from the Green and Inclusive Community Buildings Program. This will transform the arena into a modern and eco-friendly multifunctional centre dedicated to a variety of sport disciplines.Footnote 1888
We explore sport infrastructure as it relates to access to sport and physical activity in further detail in Chapter 7. In that chapter, we conclude that the lack of appropriate sport infrastructure in Canada is a barrier to increasing participation and we call on the Government of Canada to increase the funding it allocates to the development and revitalization of sport infrastructure. Our Calls to Action on sport infrastructure can be found in Chapter 7.
Participants perspectives on federal funding
Participants’ perspectives on the funding crisis
There is a broad consensus that the sport system is underfunded. Time and time again, we heard the same thing: the core federal funding for National Sport Organizations has not increased since 2005. All participants agreed that National Sport Organizations are facing growing demands.
We were told that National Sport Organizations require a $104 million increase in annual federal government funding.Footnote 1889 According to the Canadian Olympic Committee and Canadian Paralympic Committee Budget 2024 Request, a five-year forecast shows that National Sport Organizations will accumulate a collective deficit of roughly $134 million attempting to meet their core mandates.Footnote 1890 Some have suggested that the deficit is much higher.
There have been many calls for the federal government to increase funding for National Sport Organizations. This need gained public attention when the media briefly reported on the funding crisis in 2024 and 2025.Footnote 1891 In 2024, for instance, media stories covered the Canadian Olympic Committee and the Canadian Paralympic Committee’s call for an additional $104 million in federal funding. These organizations also released results from a study conducted by Deloitte on the financial health of Canadian National Sport Organizations, which illustrated the extent of the funding crisis impacting these organizations.Footnote 1892 The Deloitte report indicates that even after factoring in non-government revenue sources, the sector faces a cumulative deficit of approximately $140 million.
In their 2024 budget request, the Canadian Olympic Committee and the Canadian Paralympic Committee outlined the challenges facing National Sport Organizations. They noted that purchasing power has decreased by 33% since the last funding increase in 2005.Footnote 1893 They emphasized that a new injection of funds was critical to address funding shortfalls.Footnote 1894 The 2024 budget request also outlined some of sport and physical activity’s economic benefits for Canada. Two of the benefits it identified were that sport tourism generated $7.4 billion for Canada’s economy in 2019 and that a 1% increase in physical activity has been estimated to save $20 billion in healthcare costs over 20 years.Footnote 1895
In 2025, the Canadian Olympic Committee and the Canadian Paralympic Committee appeared before the House of Commons Standing Committee on Finance. In advance of the 2025 budget, they requested an increase of $144 million to the core funding for National Sport Organizations.Footnote 1896 The Standing Committee subsequently recommended that the core funding allocated to National Sport Organizations be increased to adjust for the inflation that has occurred since 2005.Footnote 1897
The Canadian Olympic Committee and the Canadian Paralympic Committee were not alone in expressing concerns about the enormous funding shortfall that all sport organizations face. Throughout our engagement activities, we were consistently told of the funding crisis and the urgent need to increase funding for sport in Canada. Many also emphasized the need for increased funding for Indigenous sport organizations and Para sport organizations.
We were advised that the freeze on core federal funding imposes immense inflationary pressures on everyone involved in sport in Canada, including rising costs for facilities, equipment, insurance, and staffing. Participants also noted that the costs of participating and the cost of international competitions have significantly increased since the COVID-19 pandemic. Participants explained that travelling for competitions is expensive. They attributed the increase in costs, at least in part, to the higher cost of living since the pandemic.
We were told that adequate funding is essential in the sport sector because it directly influences the quality of facilities, access to training resources, and overall athletic performance. Participants highlighted on numerous occasions that the chronic lack of funding creates pressure on sport organizations who are no longer able to deliver appropriate programs and services.
Public reports have also highlighted the impact of these funding shortfalls on National Sport Organizations:
- 80% are skipping competitions that athletes would normally attend
- 70% have paused, scaled back, or eliminated programming
- 90% have reduced or eliminated training camps
- 80% have increased athlete fees.Footnote 1898
Many National Sport Organizations and Multisport Service Organizations shared with us that they often worry that they will not be able to meet their payroll obligations. Some National Sport Organizations have suggested they may be forced to shut down if the funding gaps are not addressed. Most of these organizations cannot fulfill their mandates without incurring significant deficits.
We were told bluntly that an underfunded sport system is an unsafe sport system. Many emphasized that adequate funding is essential to create safe and inclusive sport environments and that sport organizations cannot ensure such environments without an increase in funding.
Mechanisms to prevent and address maltreatment require appropriate resources. Funding also enables the maintenance and enhancement of sports infrastructure, ensuring athletes have access to safe and well-equipped environments for training and competition. Moreover, sufficient funding allows for qualified coaches and support staff to be hired, contributing to improved athlete development and performance.
Participants’ perspectives on short-term funding
A critical issue that participants flagged throughout our engagement process was the need for greater certainty in funding. There was a clear consensus that government funding needs to be less focused on project funding and move to long-term, multi-year base funding.
The Commission was informed of significant concerns about the temporary nature of targeted or special project funding. Although sport organizations welcomed receiving funding to address diversity, equity, and inclusion, Indigenous sport, or safe sport, many noted that short-term funding was an inappropriate way to address these issues which are long-term priorities. They require sustained, core funding so organizations can make and maintain meaningful changes.
We were also advised of delays in the payment for certain programs. We heard numerous examples of National Sport Organizations and Multisport Service Organizations being uncertain about their funding status. Often, they were told that new funds were available only shortly before the fiscal year end, and that they were required to spend the money in a matter of weeks. This practice undercuts any organization’s ability to plan and to spend funds responsibly.
We heard that a clear, long-term strategic funding policy is needed to provide greater certainty and stability in the sport system. Participants commented that this policy should include clearly articulated funding criteria to support core, multi-year funding. They further emphasized that a regular funding schedule should be established to ensure that sport organizations receive funding on a consistent and timely basis. Others recommended that funding schedules for high-performance sport support should be delivered in four-year cycles.
Participants’ perspectives on funding priorities
The value of high-performance sport was reiterated throughout our engagement activities. Many participants shared that national and international sporting achievements inspired Canadians and fostered national pride. However, we were frequently reminded that federal government funding allocation disproportionately prioritizes winning medals and high-performance athletes, as opposed to increasing sport participation.
Participants emphasized that a performance-based model creates ongoing instability for sport organizations, which face continual risks of funding cuts when medal expectations are not met. They noted that the loss of funding resulting from not meeting medal targets had serious consequences for sport organizations, including staff reductions and a heightened pressure to win. These conditions, participants explained, create unhealthy environments and reinforce the win-at-all-cost mentality, as funding continues to depend on short-term performance rather than long-term development or the well-being of athletes and staff.
Critics of a performance-based model for funding noted that when winning is the focus, it becomes the only measure of success. This can come at the expense of other values. It can also affect people’s willingness to report and address allegations of maltreatment. Many we spoke with expressed concern that the culture of “winning at all costs” fostered an environment in which victims, survivors, and witnesses of maltreatment were silenced. We were advised that many were afraid to report maltreatment to Sport Canada and Own the Podium, fearing they would lose their funding.
Similarly, as we described in Chapter 5, many participants in our engagement process were critical of Own the Podium, the organization that makes recommendations on funding to the federal government. Despite having only an advisory role and not making any decisions on funding allocation, we were told that Own the Podium has an inordinate influence and authority over National Sport Organizations. A common sentiment was that Own the Podium is responsible for the emphasis on medals and winning for funding, and the culture of “winning at all costs.” However, some we spoke to felt that the focus on winning was the result of the federal government’s decisions.
Although Own the Podium has shifted their focus to supporting Olympic and Paralympic athletes in “winning well,” many were skeptical that its priorities had truly shifted.
Many acknowledged that Own the Podium was created for the very specific purpose of winning more medals and that it is simply fulfilling its mandate. However, some told us that the core issue was that no one asked whether “winning” should continue to be the primary focus. Others noted that winning in and of itself is not a bad goal. The true concern is when the pursuit of winning comes at the expense of athletes’ well-being.
With this in mind, we heard a broad consensus that it was time for the federal government to shift funding priorities to be more inclusive and focused on increasing participation in sport. Many explained that the goal was not to exclude high-performance sport but to recalibrate funding priorities to more accurately reflect the values and wishes of Canadians who are increasingly valuing fun, respect, safety, access, and inclusion.
Participants’ perspectives on National Sport Organizations’ evaluation criteria
As we noted earlier, the number of National Sport Organizations in Canada continues to increase and the funding envelope for the Sport Support Program remains unchanged. Some participants suggested that the federal government may need to become more selective in the organizations it chooses to support because federal funds could be more effective if fewer organizations were funded more fully.
Participants agreed that federal funding for National Sport Organizations should be based on transparent and objective criteria. Although some participants expressed support for Sport Canada’s current criteria for support in the application guidelines (which focus on activities’ impact on the sport system, organizational capacity, and requested budget), they noted that the relative weight or importance assigned to each criterion remained unclear. Additionally, participants voiced concerns about the apparent lack of consistency in how these criteria are applied. For example, we heard that some National Sport Organizations that have large participant bases received relatively little or no funding, while others received significantly more.
For many participants, a National Sport Organization’s impact on the sport system was the most important factor in determining funding allocation. While excelling on the international stage was valued by participants who acknowledged that it fosters a great sense of national pride, they emphasized that the sport’s inclusion in the Olympic or Paralympic program should not be the sole criterion for funding decisions.
Participants proposed that the impact of a National Sport Organization could be assessed through several measures, including:
- the strength of the national team program based on performance and rankings
- proof of participant development pathways from the community level to the national level
- numbers of registered participants at each level of the sport.
Many participants saw the introduction of criteria clearly focused on participation levels and the sport’s accessibility as important. They commented that there should be a focus on National Sport Organizations that steward their sport’s growth and development. Some recommended that certain organizations should be supported solely because of the large number of people who participate in the sport. The 2025 Jumpstart State of Play Youth Report noted that soccer, swimming, basketball, biking, and badminton were the top five most played sports among Canadian youth.Footnote 1899
Representatives from Para and Disability sport organizations emphasized how the unique circumstances of Para and Disability sport need to be considered from the outset when designing funding criteria. They cautioned that placing too much emphasis on participant numbers can unfairly disadvantage their organizations because these sports often have smaller participant bases.
Participants put forward several other suggestions for new criteria to guide the allocation of core funding to National Sport Organizations. Some advocated for a criterion based on the organization’s financial need. Others suggested that metrics that assess the quality of the services provided to athletes — such as mental and physical health supports and coaching quality — should be introduced as funding assessment criteria. Participants also suggested that key performance indicators that assess organizational culture should be considered so that organizations that are truly committed to “winning well” can benefit from a funding model that recognizes and rewards this behaviour.
Participants’ perspectives on National Multisport Service Organizations’ funding
Several participants observed that the financial support for National Multisport Service Organizations has continued to grow, while the support for National Sport Organizations has stagnated. We also heard concerns about the apparent high administrative overheads of these Multisport Service Organizations.
Participants commented that too much funding is being invested in Multisport Service Organizations and that an independent review of these organizations to streamline their governance and to reduce government funding ought to be conducted. They suggested that some of the funds allocated to Multisport Service Organizations could be redirected to support National Sport Organizations or athletes.
Participants’ perspectives on the Community Sport for All Initiative
As we noted earlier, a majority of participants expressed strong support for the Community Sport for All Initiative. We were told that community programs were enhanced as a result of this initiative. Several participants, including representatives from provincial and territorial governments, urged the federal government to maintain and increase funding for this program or others that endeavour to make sport more accessible and affordable at the community level.
Some participants criticized the federal government’s current approach to supporting community-level sport. The Community Sport for All Initiative relies on National Sport Organizations, National Multisport Service Organizations, and other large organizations to reach the grassroots. We were informed that distributing funds through these organizations can create instability and administrative burdens without building lasting organizational capacity or awareness of community-level issues within National Sport Organizations. There was also a sense that some organizations were not intentional in the design of their projects.
Rather than continuing through fragmented project funding under the Community Sport for All Initiative, we heard that the sport system needs a clear designation of responsibility for grassroots and community sport development, accompanied by stable, long-term funding.
A minority of participants believed that the federal government should not be responsible for community-level sport or physical activity. They felt that provincial and territorial governments ought to be responsible for funding community-level activities, and that the federal government should invest in national teams and athletes. They stressed that support for high-performance sport is desperately needed at this time, and that the federal government is the only public funder for national-level athletes and sport organizations. There was a strong sentiment that support for the grassroots should not detract attention from high-performance sport.
At the same time, we heard from some participants working in high-performance sport that it is important to invest in community-level sport. They explained that a healthy sport system starts with broad participation and strong community programs. Community-level sport is the starting point for most high-performance athletes.
We were told on numerous occasions that the countries experiencing the greatest success are those that prioritize investment at the grassroots, ensuring broad access to sport and fostering a healthy and inclusive society.
Some participants believed that high-performance athlete success inspires people to participate in sport and physical activity. Others noted that studies suggest otherwise.Footnote 1900 Ultimately, we heard that support for high-performance sport cannot replace targeted and strategic investments in increasing sport and physical activity participation.
Participants’ perspectives on funding to support Indigenous-led sport
Participants shared with the Commission that the funding provided to support Indigenous communities, organizations, and initiatives was insufficient. Specifically, we understand that the federal commitment for hosting the North American Indigenous Games is inadequate given inflation and the increasing cost of hosting the games. It was also noted that provinces and territories should increase their investments to ensure these games’ sustainability. Participants highlighted the importance of continued and increased funding of the Sport for Social Development in Indigenous Communities component of the Sport Support Program.
Participants raised concerns about the current funding formulas used to allocate funding. Stream 1 of this component relies heavily on population metrics, which they argued fails to account for the unique barriers that remote and other rural areas face, such as limited access to sport and high travel costs. Participants advocated for funding models that consider these factors. We were also told that funding is allocated on a yearly basis. The lack of multi-year commitments makes it difficult for recipients to plan and implement long-term strategic initiatives.
More broadly, we were advised that grants that require in-kind financial contributions act as barriers to access for many Indigenous communities. Some of these communities may not have the resources to provide such contributions. Moreover, many were concerned that the current funding programs do not provide adequate support for Indigenous people living in urban areas.
Participants stressed the importance of upholding the principle of free, prior, and informed consent in all sport-related funding decisions and programming involving Indigenous Peoples. Some told us that there should be a separate funding framework for Indigenous sport organizations.
Participants’ perspectives on the application process
Many organizations told the Commission about a variety of administrative burdens and funding challenges that they encountered when applying for funds from Sport Canada. Participants from all levels of sport said that the funding application requirements often changed with minimal notice, imposing additional challenges of time and effort. We also heard on numerous occasions that these applications were frequently repetitive, overly complex, and difficult to navigate.
Participants from many federally funded organizations said that the funding application process could be streamlined and better coordinated. Some commented that there should be a single application and reporting process for all Sport Canada funding for National Sport Organizations (including both core support and all other programs). Many felt that the administrative burden associated with these processes sometimes outweighed the benefits of the funding offered.
Some sport organization representatives explained that they were less concerned with the level of detail and the extensive nature of the application than with the fact that applications were frequently reviewed by individuals without sport expertise.
We were informed that the challenges related to application procedures were conveyed to Sport Canada and that it has made efforts to simplify and streamline the application process. For instance, sport organizations receiving core funding can now apply and receive additional project funding without submitting another application.
We heard similar concerns and frustrations regarding the reporting process for recipients of federal funding. It was noted that reporting procedures varied widely, and they frequently resulted in sport organizations’ unnecessary duplication of efforts.
Participants’ perspectives on a lack of oversight
Participants shared significant concerns about Sport Canada not providing adequate oversight of funding recipients. They called for regular, independent audits and monitoring of National Sport Organizations and other federally funded sport organizations to ensure fiscal responsibility and to build public trust. Many felt that the current compliance and monitoring mechanisms were insufficient. They emphasized the need for robust, transparent checks on how funds are managed and allocated.
Participants recounted instances where Sport Canada cut funding to certain National Sport Organizations following compliance issues, only to later reassure these same organizations that funding would be restored. These actions fostered a perception that sport organizations were colluding with Sport Canada, undermining public confidence in Sport Canada’s ability and willingness to effectively monitor compliance and address ongoing issues.
Participants also noted the limited amount of public information regarding the operational status of Sport Canada’s monitoring and compliance unit. They observed a lack of clarity on the extent of its monitoring activities, or any findings or actions that the unit had taken to date.
Sport Canada is empowered to monitor and audit organizations, and it claims to do so. However, there is a widespread belief among participants that most sport organizations are not being adequately monitored or audited. Participants expressed the view that no one is truly ensuring that organizations comply with their funding conditions unless there is a public scandal, which places pressure on Sport Canada.
Participants’ perspectives on support for athletes
The Commission heard from many athletes who are struggling with insufficient funding. They told us that the funds provided through the Athletes Assistance Program are inadequate to support their needs. We learned that many cannot afford basic necessities and some are living below the poverty line. A common concern was that uncertain funding caused significant stress. Many were considering leaving their sport as a result of inadequate financial support.
Participants pointed to an independent study prepared for the Department of Canadian Heritage that revealed that the average income of national team athletes was $34,945 in 2022, with most of the income derived from the Athletes Assistance Program, followed by provincial assistance. Meanwhile, their average expenses were $39,528 per year.Footnote 1901 We were told that most Team Canada athletes need to have at least one part-time job in addition to receiving Athlete Assistance Program funding to afford the cost of living and training. Many athletes have incurred significant debt in pursuit of their athletic careers.
Additionally, we were told that support for Para athletes is often not top of mind. For example, when there was an increase in the Athletes Assistance Program, there was initially no corresponding increase in supplementary support for athletes with high support needs. This situation was corrected only after persistent advocacy from Para sport organizations.
On various occasions, we were advised that the financial strain placed on sport organizations is being passed on to sport participants. For example, athlete fees have generally increased. We learned that many athletes receiving support are facing significant financial challenges. It was brought to our attention that some athletes are required to provide some of their carding money to their National Sport Organizations. The Commission learned of many athletes having to pay their own travel costs and fees to attend necessary trial events for national and international competitions.Footnote 1902 They also spoke of personally subsidizing their training and nutrition programs. Recent media coverage reveals that numerous high-performance Canadian athletes are turning to crowdfunding and private donations to cover the cost of training, competing, and basic living expenses.Footnote 1903
These realities underscore the significant financial challenges that Canada’s high-performance athletes experience. These are powerful disincentives that impede access to high-quality sporting competition and represent costs that may be prohibitive for many.Footnote 1904
An additional $35 million was invested by the federal government in the Athlete Assistance Program in 2024, with an additional $7 million annually for five years.Footnote 1905 However, significant financial pressures continue to exist for all high-performance athletes, especially for Para athletes. Participants recommended that Athlete Assistance Program funding should be indexed to inflation.
We heard that the terms of the Athletes Assistance Program regarding injured athletes are unfair and need to be reviewed. Some participants suggested that there should be a separate recovery fund for injured national team athletes.
Some participants believed that national team athletes should be classified as employees of the federal government. They noted that national team athletes who represent Canada on the world stage devote themselves entirely to their sport, yet they do not receive the same basic protections offered to other workers. They emphasized that granting athletes employment status would offer benefits such as medical coverage, pension plans, and overall financial stability. Participants told us that athletes also need support after retiring from their athletic careers.
Participants’ perspectives on support for hosting
Participants, including representatives from governments, agreed that hosting domestic and international sport events can generate significant economic and social benefits. Such events were cited as boosting sport’s contribution to the national Gross Domestic Product. They attract meaningful investment in communities and establish lasting infrastructure that benefits both communities and athletes.
We heard that few national, provincial, or territorial sport events are hosted in northern regions of the country. Participants indicated that organizing these events requires substantial financial resources, organizational capacity, and appropriate facilities, which can be challenging to secure in northern regions.
Some participants expressed the view that funding for hosting is currently delivered in a non-strategic manner. We also heard significant frustration with the lack of collaboration between federal, provincial, territorial, and municipal governments in supporting hosting opportunities. Participants recommended that federal, provincial, and territorial governments should commit to developing and adopting an international multisport games hosting strategy to guide strategic investments in hosting.
Participants’ perspectives on diversifying federal government funding sources
Many participants argued that the federal government needs to diversify its sources of funding to sustain federal funding for sport. They shared a variety of proposals during our engagement activities. Some suggested that the existing funds within multiple ministries should be redirected to supporting sport organizations and athletes. Here are some of their suggestions:
- The Department of Justice and the Department of Public Safety could contribute to sport programs that aim to reduce youth offending rates.
- The Department of Immigration, Refugees and Citizenship Canada could contribute to sport programs that facilitate integration and well-being for refugees and newcomers.
- The Department of Crown–Indigenous Relations and Northern Affairs Canada could invest in sport programs that promote reconciliation efforts.
- The Federal Anti-Racism Secretariat could contribute to sport programs that help address barriers that Indigenous Peoples, racialized communities, and religious minorities experience.
- The Black-led Philanthropic Endowment Fund could provide funding to Black-led, Black-focused, or Black-serving sport organizations.
Many participants noted the significant potential of sport-betting taxation revenues as a new source of funding if the revenues were to be dedicated to sport and physical activity. They suggested that such revenue could be specifically allocated to support sport and provide assistance to those who are suffering from the harms of sport betting. It could also support research and educational programs and improve the accessibility of sport programs.
In 2025, the Canadian Olympic Committee and the Canadian Paralympic Committee recommended to the House of Commons Standing Committee on Finance that the federal government use federal tax revenues from single-sport betting to invest in sport and stabilize the Canadian sport system.Footnote 1906 During our engagement activities many reiterated this suggestion.
The Canadian Olympic and Paralympic Committees’ 2024 budget request noted that in 2023, the federal government raised, in Ontario alone, over $60 million in Goods and Services Tax revenue from sport betting. This figure was projected to grow substantially in the coming years.Footnote 1907 We were advised that provincial and territorial governments receive significant revenues from sport betting.
Several participants noted that other countries direct a portion of betting and gambling proceeds to sport. For example, Norway allocates 64% of its national gambling and sports betting proceeds to sport — around USD 400 million annually. These funds support various initiatives, including coach training, equipment upgrades, and facility development. In the United States, sports betting and gambling are state controlled. We were informed that New York uses sports betting to support youth sports.
Lotteries were also often mentioned as a possible dedicated revenue source for sport in Canada. Some participants suggested that a National Sport Lottery could be created. We were advised that Japan designates three quarters of its lottery sales profits toward diverse sports projects, with the Sports Promotion Lottery channelling USD 102 million annually into community sport. In the United States, we were informed that Colorado has allocated lottery proceeds to fund recreation spaces. Participants also noted that many sport organizations in Canada also receive funding from their province or territory’s lottery funds.
We heard a range of opinions about the value and ethics of lottery and sports betting revenues being dedicated to sport and physical activity. Some we spoke to had concerns about the addictive nature of lotteries and betting, and the financial and mental health impact of those activities. Given that governments have chosen to legalize gambling and lotteries, others felt that the tax proceeds derived from such activities could be dedicated to supporting healthy lifestyle programs such as sport and physical activity programming.
Participants noted a wide variety of other potential funding sources. These included revenues from business sponsorships, private donors, and the allocation of the Goods and Services Tax collected on the sale of sport equipment. However, some stated that these revenues would pale in comparison to the revenue-generating potential of sports betting and lotteries.
Participants’ perspectives on diversifying sport organizations’ funding sources
Beyond expanding governmental funding, participants also suggested that sport organizations should be responsible for finding other sources of funding because government spending alone cannot sustain the entire sport system. We understand that sport organizations have attempted to diversify their revenue sources with varying levels of success.
Participants indicated that most sport organizations receive donations and corporate sponsorships, though the level of support varies widely. For National Sport Organizations, these forms of revenue accounted for 10 to 29% of their revenue from 2020 to 2024. Some larger sport organizations, like the Olympic and Paralympic Committees, Hockey Canada, and Canada Soccer, are effective at developing more significant corporate sponsorships, television and marketing rights, and other sources of private funding.
Some sport organization representatives expressed a desire for better support to help them find corporate sponsorships. Participants also emphasized the importance of acknowledging that Disability sport caters to smaller audiences, which inherently limits its revenue streams.
We heard concerns about the degree to which sponsorship dollars are drawn to the Olympic Games. Participants explained that sport organizations that provide athletes and teams for these events are often facing increased challenges in finding sponsors. When sponsors do exist, we were told that sponsorships during the Olympics were often restricted, thereby diminishing the value of sponsors’ involvement with a sport.
Others spoke of declining opportunities for corporate sponsorships. The reputation of sport has suffered in recent years, which has negatively affected sport organizations’ ability to secure sponsorships in an already competitive environment. The proliferation of professional sport leagues was identified as another factor that contributed to difficulties in securing sponsorships.Footnote 1908
Most sport organizations rely largely on government funding and membership fees. And many expressed a deep appreciation for the corporations and donors who currently support sport at all levels. Nevertheless, these other sources of revenue are insufficient for National Sport Organizations to bridge the funding gap caused by the stagnation in federal government contributions.
Provincial, territorial, and municipal government funding
Provincial and territorial government funding for sport and physical activity varies considerably across the country. Each government provides unique programs and funding to support athletes, organizations, and community initiatives. Each program has its own eligibility requirements and conditions for funding. As we discussed earlier in the report, this can include the requirement for sport organizations to adopt safe sport policies (Chapter 9) and good governance practices (Chapter 14).
For example, the Government of Ontario administers the Ontario Amateur Sport Fund which supports recognized Provincial Sport Organizations and Multisport Service Organizations in the province.Footnote 1909 Under the Ontario Sport Recognition Policy for provincial and Multisport Service Organizations, sport organizations are required to implement good governance practices and safe sport policies. These practices can include implementing policies and procedures that define the organization’s democratic governing structure and operational policies.Footnote 1910 Additionally, Provincial Sport Organizations and Multisport Service Organizations need to be endorsed by a National Sport Organization funded by Sport Canada.Footnote 1911 The Ministry of Sport is responsible for granting recognition status to sport organizations, which is a prerequisite to apply for funding. It also monitors their compliance with the recognition criteria and obligations.Footnote 1912
In some provinces and territories, including British Columbia and Saskatchewan, the government delegates to a not-for-profit organization some of the responsibility to coordinate, and sometimes, to fund, amateur sport in their jurisdiction.Footnote 1913 Typically, these organizations become responsible for funding Provincial and Territorial Sport Organizations and Multisport Service Organizations, as well as administering other programs.Footnote 1914
As we noted earlier, provinces and territories are recipients of federal funds provided under bilateral agreements with the federal government.Footnote 1915 Some provinces and territories also rely on third-party funding, like the profits from the sale of lottery tickets, to support their sport sectors.Footnote 1916
It is difficult to accurately analyze the available data on the exact amounts allocated to sports in each province and territory. This is because funding allocations for sport may be classified differently by jurisdiction. For example, amounts allocated to sport can be a part of a broader budget for recreation, culture, tourism, or capital infrastructure.
Aside from providing funding to sport organizations and athletes, provinces and territories can also implement other measures to support participation in sport and physical activity. For example, Quebec and Nova Scotia provide tax credits for children’s activities, including sport and physical activity.Footnote 1917 While not direct government funding for sport, these tax credits are intended to provide financial assistance to parents who enroll children and youth in sport and physical activities. We also note that many provinces and territories invest in capital infrastructure for sport and recreation.
Municipal governments may also offer grants and contributions to support sport and recreation and improve facilities in their communities.
Participants’ perspectives on provincial, territorial and municipal funding
Regarding funding at the provincial, territorial, and grassroots level of sport, many participants raised similar concerns about insufficient and unstable funding. We were advised that the funding provided by the federal government to National Sport Organizations can flow down to the grassroots, but only for members of Provincial and Territorial Sport Organizations. This does not apply to non-member organizations.
Community sport programs face additional funding issues, including funding cuts, a lack of new revenue sources, and limitations on fundraising abilities. This impacts programs’ availability and affordability because additional costs often get passed on to families through memberships and fees.
Provincial and territorial governments noted that sport is becoming increasingly expensive and unattainable for many. Even where registration is affordable, the high costs of equipment can pose challenges to participation.
Participants called for provincial and territorial governments to increase their funding contributions to sport. Representatives of provincial and territorial governments advised us that ongoing collaboration between governments and sport organizations is essential to ensure that funding and programs support the entire spectrum of sport. It was noted that collaboration should recognize and support the pathway between community participation and elite competition.
Sport funding in other countries
We noted in the Preliminary Report that there may be value in considering how Canada compares to other countries in terms of its investment in sport. Many participants had suggested that Canada may not be investing to the same extent as other leading sport nations.
We realize that direct comparisons between countries are not possible because each nation has its own approach to funding sport that reflect its priorities and how it defines sport. Furthermore, different countries have access to distinct funding sources to support sport. In addition, how the figures and data are calculated varies widely and they may not cover the same time periods. Even so, we believe that examining international models remains instructive because it provides insights into how sport is valued and supported internationally.
In the section that follows, we review the approaches of Australia, the United Kingdom, New Zealand, and Norway because these were frequently cited models during our engagement activities. We also describe these models in further detail in Chapter 12.
Australia
Australia’s sport funding is managed by the Australian Sports Commission for mass participation, and the Australian Institute of Sport, an arm of the Australian Sports Commission, for elite sport.Footnote 1918
The Australian Government provides funding to the Australian Sports Commission to invest in sport at all levels.Footnote 1919 Thus, the Australian Sports Commission offers a variety of funding programs. Community sport receives support through targeted grant programs like Play Well Participation and Sporting Schools.Footnote 1920 The commission provides direct support to athletes to enable them to focus on training and competitions to achieve the commission’s strategy targets in Olympic, Paralympic, and Commonwealth Games sports.Footnote 1921 The government also financially supports the hosting of major international sporting events in Australia.Footnote 1922
The Australian Sports Foundation, a national non-profit, raises significant funds for clubs and athletes.Footnote 1923 It is the only organization in Australia to have Deductible Gift Recipient status for sport (any donation of two dollars or more is tax-deductible).Footnote 1924 It distributes hundreds of millions of dollars to sporting organizations, clubs, and athletes.Footnote 1925 Notably, Australia does not use national lottery funds for sport. Instead, government budgets and private sector partnerships are the main sources of funding.
In Australia, sport represented nearly 0.08% (AUD 489 million) of the federal government’s budget in 2023–2024.Footnote 1926 Sport accounts for approximately 1% of the Australian total Gross Domestic Product in the amount of AUD 26 billion.Footnote 1927
United Kingdom
The United Kingdom funds high-performance sport primarily through UK Sport, which invests resources derived from both the National Lottery and the United Kingdom government.Footnote 1928
Direct financial support for athletes comes through Athlete Performance Awards, funded solely by National Lottery income. These funds enable athletes to focus on medal success in the Olympic and Paralympic Games.Footnote 1929 UK Sport also invests in specialized support services via the UK Sports Institute. This institute delivers services to Olympic and Paralympic athletes, including sports science, medicine, and technology support.Footnote 1930
UK Sport has no direct involvement in community or school sport. Instead, community and grassroots sport are funded separately by Sport England, Sport Wales, Sport Scotland, and Sport Northern Ireland.
In 2023, the sport sector generated an estimated £20 billion, accounting for 0.8% of value added to the UK economy that year.Footnote 1931 In the same year, the central government in the United Kingdom spent a total of £522 million on sport, making up 0.04% of the total budget.Footnote 1932
New Zealand
Sport New Zealand receives government funding to promote play, active recreation, and sport. The distribution of funds is guided by four-year strategic plans.Footnote 1933 It strengthens the play, active recreation and sport system by investing in partner organizations like National Sport Organizations and regional organizations. Sport New Zealand also provides targeted funds for groups and organizations for recreation and sport opportunities, including funds for Indigenous populations and a rural travel fund.Footnote 1934 It also delivers programs and initiatives that primarily focus on groups that are less active, such as girls and young women and people with disabilities.Footnote 1935
Government and lottery funds, and revenues from sports betting and gambling, support sport in New Zealand. In 2024–2025, Sport New Zealand’s revenue included $110.5 million from the Crown, $82 million from the New Zealand Lottery Grants Board, and $7 million from the Racing Industry Act revenue.Footnote 1936 (The Racing Industry Act controls and taxes sports betting and gambling in the country.)Footnote 1937
In New Zealand, sport represented 0.09% (NZD 125 million) of the federal government’s total budget in 2024–2025.Footnote 1938 In 2024, sport and recreation accounted for approximately 1.9% of New Zealand’s total GDP in the amount of NZD 8 billion.Footnote 1939
Norway
The Government of Norway funds sport primarily through its state lottery’s surplus and grants from municipalities.Footnote 1940 The Department of Civil Society and Sport, under the Ministry of Culture and Equality, is responsible for distributing the surplus from Norsk Tipping (the national lottery and sports betting mechanism) to sport activities, organizations, and facilities.Footnote 1941 Notably, 64% of the gaming proceeds from Norsk Tipping is allocated to sport.Footnote 1942 In 2025, total sports funding from the lottery was projected to be NOK 4.25 billion (USD 414 million).Footnote 1943
Funding from Norsk Tipping supports sports facilities, national facilities, research, anti-doping, inclusion in sports, outdoor activities, and physical activity and event grants. It also allows for the provision of grants to local clubs and supports sport organizations, including the Norwegian Olympic and Paralympic Committee and Confederation of Sports.Footnote 1944 In turn, the Norwegian Olympic and Paralympic Committee and Confederation of Sports provides funding to support children, adolescents, and recreational sports.Footnote 1945
Participants’ perspectives on international sport funding
Many participants spoke of how Norway, New Zealand, and Australia invest in sport — they invest in the value of sport. Sport is not considered as something “nice to have” but is embedded as a fundamental and central aspect of their society and culture. We learned that these countries understand the value of sport in propelling their society forward, and that public investments in sport follow from that value.
There is a widespread belief among members of the Canadian sport community that Canada needs to do the same. Participants in our engagement activities noted that while governments promote sport participation and its many benefits, such as promoting physical and mental health and bringing communities together, public funding of sport in Canada does not align with this narrative.
The chronic underfunding of sport in this country has prevented us from unlocking the true power of sport.
Reminder of the Commission’s preliminary recommendations
In its Preliminary Report, the Commission made several recommendations intended to address the funding crisis and improve the allocation of federal funds to support sport and physical activity in Canada.
First, we recommended that the Government of Canada urgently increase core funding for National Sport Organizations to account for inflation since 2005. Second, we recommended additional targeted funding for National Para Sport Organizations to address their unique needs. Finally, we recommended that the Government of Canada periodically review the core funding for federally funded sport organizations to ensure it is adequate to support core operational requirements and address long-term priorities.
The Commission recognized that the sport system is severely under-resourced and that existing structures and practices have led to inefficient use of resources. We therefore recommended that National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes be required to conduct operational efficiency reviews.
To promote the sport system’s long-term financial health, the Commission recommended that the Government of Canada study diversifying sources of funding, such as tax revenues from single-sport betting, to support federally funded sport organizations. The Commission also recommended that all National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes explore and diversify their revenue streams and examine processes and practices to enhance efficiency and effectiveness.
Additionally, the Commission recommended that all aspects of federal funding for sport and physical activity funding should be centralized and transferred to the Centralized Sport Entity once it is established (see Chapter 12). This entity would be responsible for developing a long-term funding strategy, setting clear support criteria, making funding decisions, distributing funding, and implementing a monitoring and auditing regime.
Furthermore, the Commission emphasized the need for clear, efficient, and accessible application procedures for federal grants and contributions, and regular monitoring and auditing of federally funded organizations. We also recommended that the federal government develop a comprehensive, multi-year funding strategy centered on safety, equity, access, and inclusion.
Lastly, we recommended that the federal government increase the funding it provides to provinces and territories for the purpose of improving the sport system and safe sport in Canada.
Creating a stable and sustainable approach to funding Canada’s sport system
The Commission remains of the view that Canada’s sport system is severely underfunded, and the performance-based sport system has played a role in fueling the safe sport crisis. It has contributed to the culture of silence in which participants are reluctant to voice concerns for fear that their funding could be jeopardized (see Chapter 3). Strategic changes and investments are needed to ensure that Canada has a well-resourced, sustainable sport system that meets Canadians’ needs and expectations.
To create a stable and sustainable approach to funding Canada’s sport system, we believe that the needs outlined below must be addressed:
- the need to invest in all levels of the sport system, including community and national-level sport
- the need to diversify sources of funding to support the sport system
- the need to centralize federal funding for sport and physical activity
- the need to improve the application processes for federal funding
- the need to enhance the monitoring and auditing of sport and physical activity organizations that receive federal funds
- the need to develop a new funding strategy for sport and physical activity and to review the criteria for support to National Sport Organizations.
For each of these needs, we outline the feedback we received on our preliminary recommendations, including feedback received during the National Summit organized by the Commission. Then we make Calls to Action.
The need to invest in the sport system
In addition to participants’ perspectives on federal funding for sport, outlined earlier in this report, we received feedback on our preliminary recommendations to increase federal support for national-level sport organizations, which we outline below.
Feedback on investing in the sport system
Participants called on all levels of government to invest more meaningfully in sport. They believe that governments have a vital role in supporting the sport system, from grassroots to high performance. These sentiments were supported by the results of the public online survey conducted by the Commission. The results indicated overwhelming support of the statement that “Governments should play a significant role in funding organized sport in Canada” among respondents who answered questions about improving the sport system. A combined 90.7% of respondents either “strongly agree” (62.7%) or “somewhat agree” (28.0%) with this statement.
We heard broad support from participants involved in our engagement process for our preliminary recommendations to increase and stabilize core funding for National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes. Many emphasized that increased and predictable funding for sport organizations is essential for building a sustainable sport system, implementing good governance practices, creating safe sport environments, and ensuring system-wide growth.
There was general support for additional funding to be directed toward Para and Disability Sport. Some participants specified that this funding should flow directly to the Para and Disability sport communities. Others noted that National Sport Organizations should be required to support Para programming.
We recognize that not all participants agreed that financial support for national-level organizations should be increased. Some participants challenged the notion that injecting more money into the system would automatically yield better outcomes. We heard that existing funds should be reallocated and used more efficiently.
Others noted that it was overly simplistic to assert that National Sport Organizations and Multisport Service Organizations merely need additional funding. They insisted that these organizations need to be efficient and well governed, with strategic priorities and established revenue-generating strategies. They suggested that there should be a system-wide audit of all the public funds spent on sport at every level before increasing the funding to sport organizations.
On a similar note, participants supported the recommendation that all federally funded sport organizations must be required to conduct operational efficiency reviews. We were told that given the country’s current economic state, such reviews should happen sooner in this process. Participants suggested that these efficiency reviews could be a part of the application for increased funds.
Additional funding needs were identified beyond increasing core funding under the Sport Support Program. Participants reiterated that there needs to be a focus on increasing participation and support for participants from diverse backgrounds.
Participants affirmed that more funding is desperately needed at all levels of the sport system, not only the national level. They urged governments to boost their financial contributions to enhance their support for sport. Some participants felt that governments are generally reluctant to invest in sport because such investments are not seen as politically advantageous or likely to influence election outcomes.
We did not hear a clear consensus on which areas should be prioritized for funding. During the National Summit organized by the Commission, the most frequently cited priorities were core funding of sport organizations, improving safe sport, and increasing participation at the community level. Other areas included funding for athletes, sport infrastructure, and school sport. Some participants said that all areas need to be priorities, and that it should be seen as an investment.
The Commission’s survey revealed slightly different priorities. Respondents were asked to select the three most important funding priorities related to organized sport in Canada among the following options:
- hosting of major sporting events in Canada (Olympics, Paralympics, and other international events)
- safe sport initiatives (e.g., prevention of maltreatment and abuse in sport, complaint mechanisms)
- support for high-performance sport
- participation in school and community-based sport
- coaching and sport leadership development
- investments in sport infrastructure.Footnote 1946
Investments in sport infrastructure (72.6%), participation in school and community-based sport (65.4%), and coaching and sport leadership development (55.9%) were the most frequently selected priorities by respondents. As a reminder, respondents were organized sport participants who answered questions about improving the sport system.
Calls to Action: investing in the sport system
There is no doubt that the sport system is chronically underfunded, and National Sport Organizations are facing a financial crisis. Our engagements with members of the Canadian sport system, along with recent studies, reports, and our own independent review have consistently confirmed this crisis.
We recognize that Canadians, including our governments, are navigating profound challenges and tumultuous times. Governments are under pressure to fund priorities that are seen as more urgent. Still, as we work to strengthen national cohesion and build a resilient Canada, it is important to remember that sport can be an important vehicle for nation-building.
Sport is an integral part of Canada’s culture and national identity. It showcases our country’s excellence on the world stage, uniting Canadians in the celebration of our athletes’ commitment and perseverance. At the same time, sport’s impact extends deeply into communities. It contributes to physical and mental health, promotes inclusion, strengthens social connections, stimulates the growth of common interests, and builds stronger communities. Sport also drives economic growth, contributing billions in revenue to the Canadian economy, creating jobs, and promoting tourism.
There is no doubt that Canada needs to invest more in sport. This re-investment is long overdue.
We remain of the view that all levels of government must invest more in Canada’s sport system. Increased federal funding is critical to ensuring that national-level sport organizations have the required stability, capacity, and resources required to continue striving for excellence and to grow and develop their sport across the country. At the same time, all levels of government should continue to invest in community-level sport and infrastructure to build a sport system that supports all Canadians from the playground to the podium. We encourage all levels of government to recognize sport as an investment in Canada’s youth and the country’s future.
In what follows we outline our final findings on Canada’s funding of the sport system. Then we list Calls to Action to invest in and increase funding to support national-level organizations, community-based sport initiatives and broad sport participation, Indigenous-led sport, and national high-performance athletes.
Efficiency reviews by national-level sport organizations
While the sport system is clearly underfunded — and we call on the federal government to strengthen its financial support — we recognize that increasing funding is not a silver bullet. Money, by itself, will not resolve all the underlying issues in the Canadian sport system.
Existing structures and practices within the sport system have led to inefficient resource expenditures, exacerbating the funding crisis. Therefore, the Government of Canada must require all federally funded sport organizations to assess their existing practices and identify opportunities for further efficiencies, especially considering the financial challenges that the sport system faces.
Everyone involved in the sport system has a responsibility and duty to carefully review their own practices, structures, and spending. The sport community must recognize the need for efficiencies and work to achieve them within their own organization and across the broader sport system. This certainly applies to National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes. This review should specifically involve seeking efficiencies by establishing shared services and pursuing amalgamation, as we describe in Chapter 13.
National-level sport organizations
National Sport Organizations play a pivotal role in the sport system, but they are facing a financial crisis. This was reiterated by participants throughout our engagement activities and clearly demonstrated by recent studies and reports and our own independent review. There is no doubt that National Sport Organizations are facing significant financial hardships.
The federal core funding for National Sport Organizations has been frozen since 2005, and it goes without saying that the cost of living has dramatically increased since then. Almost all National Sport Organizations depend on federal support to fulfill their leadership responsibilities. These include providing professional development for coaches, selecting and managing national teams, hosting national competitions, and managing high-performance programs. Although most organizations leverage other sources of revenue, such as membership fees and sponsorships, few are successful in raising substantial amounts. The revenue generated from additional sources is insufficient to bridge the funding gap. As a result, sport organizations are often left with shrinking budgets and growing deficits.
National Sport Organizations are also facing increasing demands. They are tasked with creating safe sport environments for their athletes, staff, and volunteers; increasing diversity, equity, and inclusivity within their sport; and strengthening their governance practices. While we emphasize that these goals are of utmost importance, we recognize that National Sport Organizations need to be adequately supported to bring about meaningful change.
The chronic lack of funding in the Canadian sport system has contributed to the safe sport crisis and undermined National Sport Organizations’ ability to fulfill their basic functions. Inadequate resources negatively impact both the accessibility and quality of their programs.
In the face of this funding crisis, many organizations have reduced programs and activities, and some may even be forced to cease operating if the funding gaps persist.
Providing appropriate support to federally funded sport organizations is essential to protect the safety of everyone involved in the sport system. For example, to create safe sport environments, these organizations require funding to implement governance best practices, develop safe sport education and training programs for their participants, and implement screening procedures. They also need to introduce mechanisms to address maltreatment.
A safe sport system benefits society at large; an unsafe one poses a threat to all.
It is clear to the Commission that there is an urgent need for an injection of funds to ensure that National Sport Organizations can continue operating. We believe that core funding for sport organizations should be adequate to support core operational requirements and address long-term priorities.
Importantly, all future funding allocations for national-level sport organizations must be determined in accordance with a new funding strategy that balances support for high-performance and broader sport participation. As we discuss in the section below entitled “The need to develop a new funding strategy for sport and physical activity,” this strategy prioritizes a sport system that is safe, equitable, inclusive, and accessible to all Canadians. In addition, eligibility and evaluation criteria for National Sport Organizations ought to be revised to align with the new strategy and will dictate the allocation of funds to these organizations. We should not shy away from asking difficult questions regarding the number and nature of sport organizations that can be supported. A careful re-evaluation of the criteria that guide eligibility for support is fundamental.
The Commission echoes the recommendation of the Standing Committee on Finance that the Government of Canada “increase the core funding allocated to National Sport Organizations to adjust for inflation since 2005, adequately resource organizations for the long-term to address critical sport system priorities and eliminate the forecast funding gap these organizations require to effectively deliver their mandates.”Footnote 1947
We also note that the Canadian Olympic Committee and the Canadian Paralympic Committee requested, on behalf of 63 National Sport Organizations, a $144 million annual increase to the core funding for National Sport Organizations for the 2025 budget. They explained that this increase would account for inflation since 2005 and address the funding gap these organizations are facing.Footnote 1948
Additionally, as we discuss in Chapter 13, the Commission acknowledges the unique circumstances of Disability sport organizations. We recognize that additional costs are involved in meeting the unique needs of athletes with disabilities. Therefore, we believe that additional funding should be allocated to Disability, Para and Paralympic sport organizations.
Regular reviews of funding levels
To ensure the long-term sustainability and effectiveness of Canada’s sport system, the federal government must proactively and regularly review the funding it provides to sport organizations. This includes assessing the adequacy of core funding for National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes.
The amount of funding that these organizations require to achieve long-term priorities, such as improving safe sport and adopting good governance practices, will change as the financial landscape and the organizations themselves evolve. A regular, ongoing analysis of government funding’s effectiveness across the sport system will provide the federal government with crucial information. This data will help it to determine whether government funding is achieving its intended objectives and whether it aligns with the sport system’s current needs. The periodic review of funding should, among other things, take into consideration the impact of global factors on sport organizations, such as inflation, tariffs, and international exchange rates.
Conditions for federally funded sport organizations
The federal government can, and does, attach conditions to the funding it provides to sport organizations. These conditions are part of contracts referred to as contribution agreements. Throughout this report, we outline conditions that the federal government must attach to the funding it provides to federally funded National Sport Organizations and National Multisport Service Organizations.
In other chapters of this report, we call on the federal government to impose conditions on federally funded sport organizations to improve safe sport in Canada and the governance of sport organizations. These conditions are:
- the adoption the Universal Code of Conduct to Prevent and Address Maltreatment in Sport as outlined in Chapter 10
- the adoption of a safe sport policy or code of conduct that includes safe sport standards consistent with those contained in the Universal Code of Conduct to Prevent and Address Maltreatment in Sport as outlined in Chapter 10
- the adoption of the Canadian Safe Sport Program as outlined in Chapter 10
- the provision of the Pan-Canadian Safe Sport Education Program as outlined in Chapter 11
- the adoption and implementation of the National Background Screening Policy as outlined in Chapter 11
- the designation of a safeguarding officer as outlined in Chapter 11
- the adoption of and compliance with the Canadian Sport Governance Code as outlined in Chapter 14.
Community-based sport and broad participation
There is a clear need for further and continued investments to promote participation in sport and physical activity. The federal government must increase the funding it allocates to support community-level sport initiatives, including those that specifically support equity-deserving communities.
As part of an ongoing commitment to promote broad sport participation, the federal government should extend and increase its funding for programs that support community sport such as the Community Sport for All Initiative. This initiative has a vital role in promoting broader participation, inclusion, and the development of accessible sport environments at the community level. It has enabled Canadians to benefit from sport and physical activity and contributed to healthier, more inclusive and active communities nationwide. Despite strong support for this initiative among members of the broader sport community, funding for the Community Sport for All Initiative is expected to end in 2026.
In addition to enhancing this direct federal support, the Government of Canada should collaborate with the provinces and territories to increase their investments in community-level sport. As we described earlier, the federal government currently provides funding to provincial and territorial governments to promote community-level sport and physical activity through bilateral agreements.Footnote 1949 These federal contributions are made under the Physical Activity and Sport Act. The Act allows the minister to enter into agreements with provinces and territories to fund programs designed to “encourage, promote and develop physical activity or sport.”Footnote 1950 It also supports implementing the Government of Canada’s policy regarding sport.Footnote 1951 While provinces and territories also invest in this area, more is needed. Canada’s sport system is underfunded, and greater investments are required to ensure robust, sustainable support for community-level sport across the country.
Increased investments and strong commitments from all governments to support broad sport participation and physical activity are essential. This support should become a shared priority of both the federal and provincial and territorial governments. With this in mind, we believe that the promotion of broad sport participation should eventually become a criterion under the Multilateral Sport Framework that we describe in Chapter 10.
This approach would not only strengthen governments’ commitment toward support for broad sport and physical activity participation but also permit them to jointly define it. For example, governments could jointly agree to prioritize support for community-level initiatives that advance equity, diversity, inclusion, and accessibility.
Until the Multilateral Sport Framework encompassing safe sport and good governance can be established, the Government of Canada should increase and regularly review the funding it provides to support community-level and broad sport participation. It should also encourage its provincial and territorial counterparts to do the same. Recognizing the important role of provinces and territories in supporting community-level sport, and that the current bilateral agreements are cost-sharing agreements, we are of the view that provinces and territories should continue to be required to match federal funds, where possible.
Indigenous-led sport
We recognize the need for continued and increased funding to support Indigenous-led sport and Indigenous athletes in Canada. We therefore call on the Government of Canada to increase the funding they provide to support Indigenous-led sport and Indigenous athletes. To meet its commitments under the Truth and Reconciliation Commission’s Calls to Action 81 to 91, the Government of Canada should increase funding for the Sport for Social Development in Indigenous Communities component of the Sport Support Program. It should also identify other measures to support the Indigenous-led sport system. As we outline in our Call to Action 3, governments must proactively and meaningfully engage with Indigenous people throughout these decision-making processes.
Additionally, the Government of Canada should also collaborate with the provinces and territories to increase their financial contributions to support Indigenous sport through bilateral agreements. As we previously noted, these agreements are already a key mechanism for funding Indigenous sport organizations and culturally relevant programming for Indigenous children and youth at the community level.Footnote 1952
National athletes
The Athletes Assistance Program is the cornerstone of Canada’s support for high-performance athletes who represent our country on national and international stages. While participants welcomed the 2024 increase of the program’s monthly living and training allowances, most athletes continue to face significant financial pressures. They often struggle to balance training demands with financial pressures, which can negatively impact their performance and well-being.
Canada’s athletes need to be adequately supported as they train and compete for Canada on the national and international stage. The federal government should therefore increase funding for the Athlete Assistance Program to adjust for inflation and the increased cost of living. This should include an immediate adjustment to current funding levels, as well as a commitment to periodically review funding adequacy.
Safe sport and improving the sport system
As we noted in our Preliminary Report, the Canadian sport ecosystem is intricate, complex, and interconnected. The problems that exist at the national level, such as governance issues in sport organizations and the prevalence of maltreatment, permeate the entire sport system.
To meaningfully address these issues and improve the sport system for all Canadians, all governments need to come together and collaborate to implement and invest in innovative and lasting solutions. To achieve this, we maintain our preliminary recommendation that the Government of Canada increase its funding to the provinces and territories to improve the sport system and ensure safe sport in Canada.
Details can be found in other chapters of this report, where we call on the federal, provincial, and territorial governments to collaborate to:
- develop and implement harmonized national, provincial and territorial safe sport programs and, in the long term, implement a unified Pan-Canadian Safe Sport Program, to respond to maltreatment at all levels of the Canadian sport system as outlined in Chapter 10
- harmonize the use of background screening tools as outlined in Chapter 11
- harmonize sport governance standards across the Canadian sport system as outlined in Chapter 14.
Calls to Action
The Commission calls for the following actions to be taken:
- The Government of Canada, following a reasonable grace period, require all National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes receiving federal core funding to conduct operational efficiency reviews to assess their existing practices and identify opportunities for further efficiency. This includes establishing shared services and pursuing amalgamation, as outlined in Chapter 13.
- The Government of Canada urgently increase the core funding allocated to National Sport Organizations to account for inflation since 2005. Thereafter, it must regularly review and adjust the funding allocated to National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes under the Sport Support Program. The funding needs to be adequate to support core operational requirements and address long-term priorities, including improving safe sport.
- The Government of Canada allocate additional funding to specifically support National Disability sport, Para sport, and Paralympic sport organizations.
- The Government of Canada, as a condition of funding, require all federally funded National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes to:
- adopt the Universal Code of Conduct to Prevent and Address Maltreatment in Sport as outlined in Chapter 10
- adopt a safe sport policy or code of conduct that includes safe sport standards consistent with those contained in the Universal Code of Conduct to Prevent and Address Maltreatment in Sport as outlined in Chapter 10
- adopt the Canadian Safe Sport Program as outlined in Chapter 10
- provide the Pan-Canadian Safe sport Education Program as outlined in Chapter 11
- adopt and implement the Universal Background Screening Policy as outlined in Chapter 11
- designate a safeguarding officer as outlined in Chapter 11
- adopt and comply with the Canadian Sport Governance Code as outlined in Chapter 14.
- The Government of Canada increase and review the funding it allocates to federal programs designed to support community-level sport and broad sport participation. This may include increased funding for the Community Sport for All Initiative component of the Sport Support Program.
- The Government of Canada collaborate with the provinces and territories to increase and regularly review the funding they provide to promote broad sport participation and support community-level sport initiatives and include “supporting broad sport participation and physical activity” as a criterion under the Multilateral Sport Framework (as described in Chapter 10).
- The Government of Canada increase and regularly review the funding it allocates to federal programs designed to support the Indigenous sport system and its athletes. This may include increased funding for the Sport for Social Development in Indigenous Communities component of the Sport Support Program.
- The Government of Canada collaborate with the provinces and territories to increase and regularly review the funding allocated to support the Indigenous sport system and athletes.
- The Government of Canada increase and regularly review the funding allocated to the Athletes Assistance Program to account for inflation and the increased cost of living.
The need to diversify funding for sport and physical activity
In addition to participants’ perspectives outlined earlier in this chapter, the Commission received feedback on our recommendations related to the need to diversify sources of funding for sport and physical activity, which we outline here.
Feedback on diversifying sources of funding
There was a strong consensus on the need to explore other sources of funding for the sport system. Participants agreed that diversifying the sources of federal funding and requiring sport organizations to diversify their revenues would ultimately lead to a more resilient and sustainable sport system.
A majority of participants expressed support for reinvesting new revenues from sports betting to support sport. Some had serious reservations about sport betting and vehemently believe that it should be banned. They noted concerns about the possibility of addiction and its effect on the well-being of Canadians. Others voiced reservations, but concluded that because sport betting was legalized, the potential revenues should be invested in sport.
Participants suggested other sources of funding for sport and physical activity, including those we described earlier, such as:
- cross-departmental collaboration and/or levying funds from various federal departments to invest in sport and physical activity
- encouraging private investments in sport, public-private partnerships, corporate sponsorships, and donations
- levying taxes, which could include a tax on sporting events, professional sport, and sports equipment.
Participants agreed that sport organizations must explore other revenue sources. However, they also noted that many organizations are unsuccessful at securing additional funding from private sources, like sponsorships. Representatives from National Sport Organizations explained that it can be challenging to compete with the Canadian Olympic Committee for sponsorships. Securing sponsorships can also be difficult for smaller and Disability Sport Organizations.
Participants noted that some sport organizations have effective foundations (that is, charitable organizations) that manage philanthropic contributions. They identified the opportunity for National Sport Organizations of various sizes to be supported by a common foundation that would pool donations together to enhance revenues.
We were also told that efforts to explore other sources of revenue for sport organizations should be tied to targeted marketing plans that broadly emphasize the value of sport for Canadians. Participants advised the Commission that sport organizations in countries that have socialized the benefits of sport for their communities have been more successful in receiving non-governmental support.
Participants suggested that if sport leaders came together, they could present a compelling narrative to corporate Canada and the government. These participants further proposed that by leveraging their collective influence, sport leaders could request that the Government of Canada “match” private donations.
While there was broad recognition that the sport system cannot be fully reliant on public funding, a majority of participants ultimately believe that governments are invaluable contributors in the sport system. Governments must step up as leaders and funders.
Calls to Action: diversifying funding for sport and physical activity
The Commission recognizes the need to ensure the financial health and viability of the Canadian sport system, and the need to balance federal investments in different sectors and across various jurisdictions. To enable the Government of Canada to invest more in sport and physical activity, we continue to believe it should explore alternative revenue sources that can be directly invested in the sport system.
During our engagement activities, participants frequently proposed investing taxation revenues generated from sport betting and lotteries. We further note that the federal government had previously used the funds from a lottery ticket scheme to raise money for the sport sector.Footnote 1953 Other possible approaches suggested by participants included levying a tax on professional sports.
In addition to these suggestions, public funding ought to be balanced by non-governmental sources of funding for sport. Therefore, we strongly encourage all sport organizations to be creative in diversifying their revenue streams, while ensuring that costs are not passed on to sport participants or volunteers. This includes exploring opportunities for partnerships, collaborations, and sponsorships, and collaborating with other sport organizations to establish shared services related to revenue generation. While some sports and sport organizations will always require financial support from the federal government, finding new ways to improve their financial viability would not prevent them from receiving government funding. Rather, it would create opportunities to leverage government funding in innovative ways.
Calls to Action
The Commission calls for the following actions to be taken:
- The Government of Canada explore and consider additional sources of government revenue to ensure it has sustainable means to invest in sport and physical activity, including but not limited to, supporting federally funded sport organizations. These sources of revenue to be explored could include, but are not limited to, tax revenues from sport betting and tax revenues from professional sports.
- All sport organizations, including National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes, explore and diversify their sources of revenue, pursue a shared services model and collaborative opportunities to generate revenues, and examine processes and practices to ensure enhanced efficiency and effectiveness.
The need to centralize federal funding for sport and physical activity
In Chapter 12, we shared feedback from participants on the creation of a Centralized Sport Entity. Here, we share an overview of this feedback as it relates to the Entity’s sport and physical activity funding functions.
Feedback on centralizing federal funding
A majority of participants endorsed the creation of a Centralized Sport Entity that would become responsible for providing public funds to support sport and physical activity. They reiterated the need for stable funding, not funding that fluctuates based on a minister’s priorities.
Some participants suggested that while the Centralized Sport Entity should play a role in promoting physical activity, the funding it provides for physical activity should be limited. They explained that provinces, territories, and municipalities must take the lead in investing in physical activity and education.
Call to Action: centralizing federal funding for sport and physical activity
The Commission remains of the view that federal funding for sport and physical activity should be centralized.
As we noted, funding for sport and physical activity programs in Canada primarily comes from two federal government organizations: the Department of Canadian Heritage (Sport Canada) and the Public Health Agency of Canada. Although Sport Canada’s focus is primarily on sport at the national level, some of its programs aim to increase participation in sport. Such programming overlaps with the mandate of other programs offered by the Public Health Agency of Canada.
When organizations apply for funding from both Sport Canada and the Public Health Agency of Canada, they must submit separate applications. This can double their reporting requirements and potentially result in inconsistencies in governance and oversight.
Another important issue is that sport organizations that receive funding from the Public Health Agency of Canada are not required to adopt safe-sport measures in line with either the former Abuse-Free Sport Program or the new Canadian Safe Sport Program.
The Centralized Sport Entity (further described in Chapter 12) should be responsible for the allocation, distribution, and oversight of all federal funding for sport and physical activity. This approach would ensure a single, centralized stream of federal funding for these areas. With this in mind, we recognize that it may take some time for the Centralized Sport Entity to be fully operational and, therefore, for the centralization of federal sport and physical activity funding to be completed.
Until the Centralized Sport Entity is established, the responsibility for supporting sport and physical activity should first remain with the Department of Canadian Heritage and the Public Health Agency of Canada, respectively. Then, as we outline in Chapter 12, structural changes should be made to ensure that a single department is responsible for supporting both sport and physical activity, at which point this department will be responsible for its funding. As explained in Chapter 12, a single minister should be responsible for sport and physical activity.
Call to Action
The Commission calls for the following actions to be taken:
- The Centralized Sport Entity as outlined in Chapter 12, once it is established, be responsible for receiving, allocating, distributing, and overseeing all federal sport and physical activity funding. Such responsibilities would include, but are not limited to:
- developing a comprehensive long-term funding strategy
- developing funding-support criteria
- making funding decisions
- distributing funds to sport and physical activity organizations
- developing and monitoring a compliance and auditing regime to ensure effective use of funds.
The need to improve the application process
The Commission received feedback, following the release of our preliminary recommendations, emphasizing that the processes which guide the provision of funds to sport organizations need to be clear, consistent, accessible and straightforward.
Feedback on improving the application process
We heard broad support for this preliminary recommendation, as most participants agreed that funding applications must be clear and accessible, and that streamlining the application process will reduce the administrative burden and resources expended on applying for funding.
Call to Action: improving the application process
We recognize that the federal government has taken positive steps to improve the process for organizations to apply for funding. However, more needs to be done. The funding applications that sport organizations must complete are complex, costly, time-consuming, and difficult to navigate. Because most programs require separate applications, sport organizations end up duplicating a significant amount of effort when applying to multiple federal programs. The complicated nature of these processes increases the administrative burden on sport organizations, their staff, and volunteers who are already under significant strain.
Many participants suggested that the application process and procedures need to be simplified and streamlined to increase the efficiency of delivering public funds. This would also serve to reduce the administrative burden on sport organizations.
The Commission acknowledges the recent improvements that Sport Canada has made to the funding application process. As described earlier, Sport Canada has reduced the number of applications that sport organizations are required to complete if they apply for both core and project funding. We also understand that national-level sport organizations can apply for multi-year core funding.
However, the application process itself still remains very long, complicated, and costly for sport organizations. A simplified application process would enable them to focus on fulfilling their mandates rather than constantly seeking financial support. We encourage the government to leverage technology, where appropriate, to assist with streamlining, standardizing, and simplifying the application processes.
Call to Action
The Commission calls for the following action to be taken:
- The Government of Canada ensure that processes guiding funding applications and the procedures supporting the receipt of federal grants and contributions are clear, efficient, and accessible. This role should be transferred to the Centralized Sport Entity outlined in Chapter 12 once it is established.
The need to improve the monitoring and auditing of sport organizations
The Commission received feedback from participants on its preliminary recommendations to improve the monitoring and auditing of federally funded sport organizations, by ensuring regular and proactive monitoring and auditing, and improving related procedures.
Feedback on improving monitoring and auditing
Participants concurred that enhancements to monitoring and auditing of sport organizations are necessary. During our engagement activities, many voiced concerns that Sport Canada’s oversight and monitoring of federally funded sport organizations are insufficient. We understand that not all federally funded sport organizations are regularly audited.
Participants agreed that the federal government should be actively involved in advancing strong governance of the sport system. It is vital to limit the misuse of funds and ensure transparency. Some participants called for the creation of a mechanism to disclose the mismanagement of public funds.
Call to Action: enhancing the monitoring and auditing of sport organizations
As we outlined in our Preliminary Report, we believe that there is a lack of adequate monitoring and oversight of sport organizations receiving federal funding through the Sport Support Program. Despite the new Compliance and Accountability function within Sport Canada and the requirement for sport organizations to submit reports on their activities, many sport organizations fail to comply with their funding agreements’ conditions. This includes those that require the implementation of good governance practices. We also heard that sport organizations are using funds for reasons other than their designated purposes.
Where governments do provide public funds to sport organizations, this money cannot be freely given without oversight and accountability. Canadians need to trust that public funds are allocated and dispensed responsibly. Regular checks and balances are required to ensure that public funds are being maximized by the organizations that receive them. Sport organizations must also understand their responsibility and, most importantly, comply with the conditions of funding, including requirements related to governance and safe sport.
The Commission reiterates that improved and enhanced monitoring and auditing of sport organizations is essential to ensure the appropriate use of funds provided by the federal government. It is also crucial for ensuring compliance with funding conditions.
The monitoring and auditing of sport organizations that receive federal funding should be proactive and regular. Audits should ensure that sport organizations meet all the conditions of their contribution agreements. This includes implementing good governance practices as we described in Chapter 14, and appropriately allocating public funds. These reviews should also thoroughly assess funding recipients’ financial health and sustainability, the organizations’ operational efficiency, the cost of sport participation, and the degree to which past Sport Canada funding has achieved the desired results.
Consideration should also be given to the monitoring process itself. The current monitoring process, like the funding application process, often places an unnecessary administrative burden on sport organizations. To help reduce this burden, participants suggested that the monitoring process be standardized and simplified. We heard that this was particularly important for small and medium-sized National Sport Organizations with limited human resources. This could, for example, include annual check-ins and standardized performance metrics. Consideration should be given to how technology, where appropriate, can be leveraged to facilitate the monitoring process. Overall, there is a need for an efficient process that reduces administrative burdens while increasing accountability. This would allow sport organizations to focus on other priorities like developing their sport.
Call to Action
The Commission calls for the following action to be taken:
- The Government of Canada regularly and proactively monitor and audit federally funded sport and physical activity organizations, and ensure that the monitoring and auditing procedures are effective, simple, and accessible. This role should be transferred to the Centralized Sport Entity outlined in Chapter 12 once it is established.
The need to develop a new funding strategy for sport and physical activity
In what follows, we share the feedback from participants as it pertains to our preliminary recommendation that the federal government develop and implement a new multi-year and evidenced-based funding strategy for sport and physical activity in Canada focused on safety, equity, access, and inclusion.
Feedback on a new funding strategy for sport and physical activity
We heard broad support for the development of a new funding strategy for sport and physical activity in Canada. A clear strategy with clear objectives was seen as a critical element missing from the current sport system.
Participants emphasized the importance of a long-term direction for funding, coupled with long-term and multi-year core funding allocations for federally funded sport organizations. They explained that short-term decisions assist with survival, while long-term thinking allows organizations to thrive.
We heard feedback from participants on the development of the long-term funding strategy. They suggested that it should be developed in collaboration with athletes, coaches, sport organizations, and other key members of the sport system.
Participants agreed that the new funding strategy needs to find a better balance between promoting broad sport participation and high performance. Some indicated that it is of utmost importance that high-performance sport continues to be reflected in Canada’s strategic approach to support sport, noting that we are falling behind compared to other countries. Consensus emerged that safe sport, equity, access, and inclusion are guiding principles that must be reflected in the strategy.
Participants suggested that the long-term funding strategy should detail the funding criteria for core support to national-level sport organizations. Some observed that there may be too many National Sport Organizations and that it is important to review the criteria for their support. In line with a new strategic approach, participants recommended that there should be criteria tied to safe sport, equity, access, and inclusion. Others suggested that there should be criteria tied to broad sport participation such as clear numbers showing how many participants are registered at each level of the sport. There should also be specific criteria tied to achieving excellence.
We were advised that clear funding criteria can enable organizations to better understand their roles and responsibilities. Representatives from National Sport Organizations indicated that they did not fully understand the federal government’s expectations regarding their responsibilities.
Calls to Action: developing a new funding strategy for sport and physical activity
The Commission remains of the view that there is a clear need for a sustainable and long-term funding strategy for sport and physical activity programs in Canada. This conclusion stems directly from our engagement activities and our independent assessment of the federal government’s current approach to funding in these areas.
This strategy should reflect the federal government’s long-term vision for investing in sport and physical activity. It should also involve adjusting funding priorities to better align with the aspirations, values and beliefs of Canadians regarding such programming.
We learned that many individuals, from all levels of sport, value high-performance sport and athletes who are seen as role models and sources of pride for Canadians. However, many participants believe that the federal government’s funding priorities have disproportionately supported high performance and winning medals to the detriment of advancing other important sport and physical activity priorities.
For this reason, the national funding strategy needs to balance high-performance sport with broader support for a sport system that is safe, equitable, inclusive, and accessible to all Canadians. It should also reflect a greater emphasis on health and physical activity. Evidence-based insights and analysis should directly inform such a strategy’s design, implementation, and evaluation.
Moreover, the strategy should specifically provide for the ongoing, stable, and equitable funding of sport organizations to ensure they serve equity-deserving groups, including persons with disabilities, Black, Indigenous, and people of colour, and members of the 2SLGBTQI+ community.
The Commission also wishes to highlight the Calls to Action 88 and 90.i from the Truth and Reconciliation Commission of Canada, as they relate to funding:
“88. We call upon all levels of government to take action to ensure long-term Aboriginal athlete development and growth, and continued support for the North American Indigenous Games, including funding to host the games and for provincial and territorial team preparation and travel. […]
90. We call upon the federal government to ensure that national sports policies, programs, and initiatives are inclusive of Aboriginal Peoples, including, but not limited to, establishing:
i. In collaboration with provincial and territorial governments, stable funding for, and access to, community sports programs that reflect the diverse cultures and traditional sporting activities of Aboriginal Peoples. […]”Footnote 1954
In addition to providing a long-term vision for Canadian sport, the federal government’s funding strategy ought to address two other concerns that were frequently raised during our engagement activities: short-term funding priorities and irregular funding cycles.
A primary concern arises from the common practice of providing short-term funding for programs and initiatives. In the past, the practice has been to allocate more funds to short-term programs, rather than increasing the core funding for sport organizations.
Many told us that, by its overreliance on project funding, the federal government contributed to uncertainty and instability for sport organizations. We heard frustrations stemming from both the amounts of funding available and the types of funding programs offered. Others explained that changing governmental priorities prevented consistency in the types of special projects that receive funding, further limiting sport organizations’ ability to engage in long-term planning.
While project funding can be a useful tool for supporting specific initiatives and projects, it cannot be an alternative to providing adequate core support for federally funded sport and physical activity organizations. In our view, it is important that the amount of core funding allocated to these organizations is adequate and allows organizations to address long-term priorities.
In this regard, the Commission heard that when short-term project funding ends, the programs it supported are jeopardized. Also, where project funding aims to address long-term priorities, like improving safe sport, it may be inadequate. There have been calls to establish and maintain a single funding model.
Many stressed the importance of multi-year funding agreements to assure long-term planning and stability in the sport system. Although we understand that multi-year core funding is currently available under the Sport Support Program, we believe that the funding strategy should recognize this need and continue to provide reliable multi-year core funding. We also note that participants described the core funding blocks, as referenced under the previous funding framework, as being overly restrictive. Some explained that there needs to be a degree of flexibility built into the framework to enable federally funded sport organizations to efficiently allocate their funds.
Another primary concern is that much of the funding for sport organizations is provided on an irregular schedule. The Commission heard that sport-related funding is often announced or released very late in the funding cycle, leaving recipients with short timelines to spend or distribute it. We were told that this can lead to “binge spending,” which limits sport organizations’ ability to strategically allocate resources, thereby reducing the impact of government funding. Many told us that irregular, delayed, and insufficient funding creates instability.
Establishing stable, predictable funding cycles would allow for sustainable planning. This would enable sport organizations to better support their primary mandates. Some also noted that stable funding would allow National Sport Organizations to support both performance and holistic athlete care.
Reviewing eligibility and evaluation criteria for support to National Sport Organizations
The ongoing funding crisis facing National Sport Organizations in Canada underscores the urgent need for both increased resources and improved efficiencies in how government funds are distributed. Thus, there is a need for the Government of Canada to re-examine its approach to allocating support, ensuring that resources are directed where they will have the most impact.
We encourage the Government of Canada to undertake a careful review of the eligibility and evaluation criteria for the Sport Support Program and align these with the new funding strategy, which prioritizes safety, equity, access, and inclusion. In doing so, the federal government may need to become more selective in its decisions about which organizations it supports. It may also need to prioritize those that effectively steward their sport, and provide accessible opportunities to participate, innovate, and create meaningful outcomes for Canadians. Recognizing that high-performance sport has received disproportionately greater support in previous years and the need to rectify this imbalance, the criteria should be aligned with our recommendation to support both high-performance sport and broader sport participation.
The Commission highlights the recommendation made by Justice Dubin as part of the Commission of Inquiry into the Use of Drugs and Banned Practices Intended to Increase Athletic Performance, namely that “those responsible for administering government funds consider in making funding decisions: (a) the extent to which a sport organization has made its programs accessible to the broader community […].”Footnote 1955
We also note that the Report of the Standing Committee on the Status of Women on women and girls in sport recommended that the “Government of Canada accelerate its review of the criteria it uses to grant funding to sports organizations and that it include, in the new criteria, clauses mandating the respect of gender equity, diversity, and inclusion standards, as well as the respect of updated sports participants safeguarding clauses.”Footnote 1956
Calls to Action
The Commission calls for the following actions to be taken:
- The Government of Canada develop a comprehensive multi-year and evidence-based funding strategy focused on safety, equity, access, and inclusion to govern the allocation of public funds to all federally funded sport and physical activity organizations. This role should be transferred to the Centralized Sport Entity outlined in Chapter 12 once it is established.
- The Government of Canada rigorously review the eligibility and evaluation criteria used to grant funds to National Sport Organizations under the Sport Support Program to align with the new funding strategy. Among other criteria, consideration should be given to criteria that take into account:
- safety, equity, inclusion, and accessibility
- good governance
- levels of participation and the reach of programs across the country
- degree of integration of disciplines, policies and programs across the country
- degree of stewardship of the growth and development of the sport across the country
- presence of development pathways for athletes from the community-level to the national-level
- national team performance and athlete well-being.
- The Government of Canada continue to make multi-year core funding available to National Sport Organizations, National Multisport Service Organizations, and Canadian Sport Centres and Institutes. This role should be transferred to the Centralized Sport Entity outlined in Chapter 12 once it is established.