Chapter 5: Funding in the sport system

Part I — The Canadian sport system

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Canadian sport is facing a financial crisis

In Canada, amateur sport primarily receives funding from the federal government and, to a lesser extent, the provincial and territorial governments. Nevertheless, the funding provided by the various levels of governments has failed to increase with the rate of inflation. At the national level, for example, core funding provided by Sport Canada, which is intended to support the day-to-day operations of National Sport Organizations, has remained the same since 2005. This has left many National Sport Organizations severely under-resourced and facing considerable financial difficulties.

In addition, the Commission heard a great deal of concerns regarding the disproportionate amount of funding dedicated to high-performance sport rather than to more broadly accessible and inclusive community sport programs. The need for more federal funding for community programming and grassroots sport was frequently raised. Many expressed concern that funding to support sport at the community level was inadequate. This view was consistently expressed by those who were members of racialized groups, participated in parasport, residents of Indigenous communities or representative of newcomer organizations.

In this chapter, we examine the various programs the federal government has created to support sport organizations, their athletes and the hosting of sporting events. We also provide a brief overview of how provincial, territorial, and municipal governments fund sport.

Following this, we share the perspectives we gathered from participants regarding funding. We conclude by outlining our preliminary recommendations with respect to funding levels, rebalancing funding priorities and funding stability.

To provide context, we will first briefly discuss the various sources and levels of sport funding in Canada.

Sources and level of funding

Funding for sport, physical activity and recreation in Canada comes from a variety of government and non-governmental sources.

Government funding from Sport Canada is the primary source of revenue for many National Sport Organizations.Footnote 1 The amount of funding provided for sport and physical activity by provincial and territorial governments varies considerably across the country, as do the mechanisms that are used to distribute these funds.

According to a Deloitte study commissioned by the Canadian Olympic Committee and the Canadian Paralympic Committee, 90% of National Sport Organizations depend on government funding as their primary source of revenue.Footnote 2 On average, government funding represents between 47% to 50% of the revenue of National Sport Organizations that receive government funds. According to the same study, a few larger National Sport Organizations operate with minimal reliance on government funding. This is only possible because they have other substantial sources of revenue including memberships fees, donations and sponsorships, event revenue, and merchandising agreements. On average, government funding accounts for approximately 9% of total annual revenue for these larger National Sport Organizations.

In addition, some National, Provincial, Territorial, and Community Sport Organizations have been effective in securing private funding from sponsorships, merchandising agreements, and corporate and individual donations. Some sport organizations also issue tax receipts which can be helpful in securing donations.Footnote 3

Below, we explore in more detail the various sources of funding for sport, starting with the federal government funding.

Federal government funding

The Government of Canada transfers money to funding recipients, whether individuals or organizations, through two key instruments: grants and contributions. A grant is generally used for recurring funding, provided the recipient is in good standing. The amount of the funding is often smaller and intended for less complex activities. 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 and reporting requirements.Footnote 4 Whether a funding program uses a grant or a contribution is determined by the terms and condition of the program as approved by the Treasury Board.Footnote 5

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 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, still impact their organization. This would include, for example, the Canada Summer Jobs wage subsidy that supports creating employment opportunities for youth.Footnote 6

The following section reviews Sport Canada’s three funding programs as well as notable funding programs from the Public Health Agency of Canada.

Sport Canada has three funding programs that target primarily sport organizations and individuals operating at the national level of the Canadian sport system. They aim to achieve the following objectives:

Over the past five years, through these three programs, the Government of Canada has invested a total of $1,315,991,663, with an average of $263,198,333 per fiscal year.Footnote 10 The Sport Support Program makes up much of this funding. Appendix 3 contains a breakdown of Sport Canada funding since the 2020-2021 fiscal year for each of Sport Canada’s programs.

We note that in 2022-2023, approximately 0.082% ($327.1 million CAD) of the Government of Canada’s budget was allocated to sport,Footnote 11 and in 2023, sport represented only a 0.3% share of the Canadian total Gross Domestic Product.Footnote 12

Sport Support Program ($212.6M in 2023-2024)Footnote 13

The Sport Support Program is the most significant Sport Canada funding program for National Sport Organizations, national Multisport Service Organizations, and Canadian Sport Centres and Institutes. In addition, the Sport Support Program also supports grassroots sport through its Community Sport for All Initiative, and Indigenous communities through the Sport for Social Development in Indigenous Communities component. Through all of its streams, the program aims to achieve four objectives:

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 and discussed together. Following this, we examine the Community Sport for All Initiative and the Sport for Social Development in Indigenous Communities component.

Funding framework

The federal government developed a Sport Funding and Accountability Framework to determine which National Sport Organizations and Multisport Services Organizations were eligible for funding from the Sport Support Program. The first Framework was introduced in 1995-1996, with updates being introduced about every four years.Footnote 15 The Sport Funding and Accountability Framework V (2016-2020) incorporated the goals of the Canadian Sport Policy 2012.Footnote 16

In November 2024, Sport Canada’s new application guidelines for the Sport Support Program were released in conjunction with the Sport Integrity Framework,Footnote 17 which is addressed above in the section on policies. These new guidelines have replaced the Sport Funding and Accountability Framework.

Funding for National Sport Organizations, national Multisport Service Organizations and Canadian Sport Centres and Institutes

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 18

Funding received through the Sport Support Program can be used towards a variety of expenses including expenses related to the delivery of services and programs like coaching, facility rentals and equipment purchases. Other eligible expenses include costs related to the advancement of safe sport, administrative costs, translation and language training, salaries, legal costs, and travel. However, there are limits to some 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 19

The current application guidelines state that multi-year funding for organizations will be available to support day-to-day operations.Footnote 20

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 21 The following considerations are worth noting:

Moreover, several sports and sport activities are ineligible for Sport Canada funding, including professional or commercial components of sports, motorized sports, games of skill, sports that are not “distinct sports” even if they are organized independently from the recognized National Sport Organization, and competitive activities that are not regulated through a National Sport Organization or governing body.Footnote 25

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 26

As of April 1, 2025, all National Sport Organizations must also meet the five governance requirements outlined in the program guidelines to receive funding.Footnote 27 These governance requirements, which are explored in more detail in Chapter 7, oblige sport organizations to have the following as a condition of funding:

As a condition of funding, organizations must also, among other requirements, adopt the Canadian Safe Sport Program.Footnote 28 The Canadian Safe Sport Program is discussed in more detail in Chapter 16.

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 29 This involves an evaluation of the following evaluation criteria:

These evaluation criteria are further detailed in the application guidelines.Footnote 31 For example, when evaluating the impact of the organization’s activities on the Canadian sport system, the guidelines provide that the evaluation committee considers the extent to which the organization’s activities advance 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 competition” and “a systemic approach to develop and support participants that will positively impact the development of the Canadian Sport system.”Footnote 32

The extent to which an organization has “reach across Canada’s sport system” Footnote 33 is noted as a criterion to measure the impact of its activities on the Canadian sport system, but it is not clear how an organization’s “reach” is defined or measured.

Several other factors are taken into consideration when prioritizing which organizations and projects receive funding. These include:

Furthermore, as discussed under Chapter 3, Own the Podium makes funding recommendations to Sport Canada, which provides the funding.Footnote 37 These recommendations are based on podium probabilities, athlete progress tracking, and the identification of the next generation of podium-potential athletes.Footnote 38 We note that Own the Podium does not itself fund high-performance sport. This is a common misconception about the role of this Multisport Service Organization.

Sport Canada can audit funding recipients in accordance with funding agreements. Additionally, sport organizations are also required to submit a final report detailing the results of their activities to Sport Canada at the end of their project.Footnote 39 Depending on the conditions of the funding agreement, some sport organizations also need to submit interim reports.Footnote 40

Additionally, Sport Canada has a Compliance and Accountability function. It is responsible for the enhanced monitoring of funded National Sport Organizations for compliance with the requirements of their funding contribution agreements.Footnote 41 This includes the implementation of good governance practices and safe sport requirements.Footnote 42 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 cycle of their contribution agreement as an ongoing condition of funding. This process allows clear objectives and expectations to be set for National Sport Organizations where gaps have been identified, and to monitor the progress of implementation.

In addition to the core funding, the federal government has also provided time-limited funding for special targeted initiatives. This project funding is generally provided for three to five years. These initiatives have addressed, among other matters, safe sport, inclusion, diversity, and accessibility. They have also increased funding for Indigenous sport.

For example, in 2023, the Government of Canada announced specific project funding for initiatives aiming to achieve gender equity, diversity and inclusion at all levels of sport through the Sport Support Program.Footnote 43 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 44

Community Sport for All Initiative ($10.5M over 2024-2026)Footnote 45

As a component of the Sport Support Program, the Community Sport for All Initiative announced in Budget 2021 aims to remove barriers and increase participation rates of under-represented groups in sport.Footnote 46 In particular, the Community Sport for All Initiative supports community programming for Black, Indigenous, racialized, 2SLGBTQI+, low-income people, persons with a disability, newcomers and seniors.Footnote 47

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, within all five regions of Canada.Footnote 48 This means that an organization does not have to operate in or reach every province and territory in order to be eligible for funding.

Projects funded under the Community Sport for All Initiative are expected to be affordable for participants, results-oriented with the aim of increasing participation and retention, focused on organized sport, green, accessible, and available in underserved communities.Footnote 49 In addition, Sport Canada 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 50

Sport for Social Development in Indigenous Communities ($24.2M in 2024-2026)Footnote 51

The Sport for Social Development in Indigenous Communities is a component of the Sport Support Program. It was created by the federal government in response to the Truth and Reconciliation Commission’s Calls to Action and the National Inquiry into Missing and Murdered Indigenous Women and Girls Calls for Justice.Footnote 52 Through this program, Indigenous organizations receive funding to deliver sport and recreation projects in Indigenous communities in Canada.Footnote 53

The three streams of the program aim to achieve various social development goals. Streams OneFootnote 54 and TwoFootnote 55 are targeted towards initiatives that improve health and education, increase employability and reduce at-risk behaviour in Indigenous communities. 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 56

The Sport for Social Development in Indigenous Communities component aims to achieve its goals through a variety of sports and physical activities. This can include traditional and cultural sports, as well as physical activities that have a recreational or wellness component.Footnote 57 Ultimately, it is up to the Indigenous organizations and communities receiving project funding to determine what is appropriate for their needs.Footnote 58

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 3. The amount of funding allocated to each is determined based on a funding formula. Appendix 4 provides a breakdown of this funding.

Streams Two and Three are available to Indigenous governments, communities, and not-for-profit Indigenous organizations. In some instances, they are also available to non-Indigenous organizations that support Indigenous communities.

Athlete Assistance Program ($31.7M in 2023-2024)Footnote 59

The Athlete Assistance Program is a federal government grant program that provides financial assistance directly to high-performance athletes. The purpose of this program is to alleviate some of the financial pressures experienced by athletes preparing for and competing in international events while maintaining their academic pursuits or professional careers.Footnote 60

The support provided through the Athlete Assistance Program can take the form of a living and training allowance, tuition support, or supplementary support.Footnote 61 Every year, approximately 1,900 high-performance athletes in 90 sport disciplines receive support through this program.Footnote 62 The amount that an athlete receives for their living and training allowance varies between $1,305 and $2,175 per month.Footnote 63 With respect to tuition support, a carded athlete may receive up to $5,500 per carding cycle with a $27,500 lifetime maximum amount.Footnote 64 In addition, supplementary funding may be provided to an athlete who medals at a Major Games, for Paralympic athletes with high needs, to support child dependents, as well as for moving, new parents and retirement assistance.Footnote 65 This assistance is limited to a maximum of $16,410 per carding cycle.Footnote 66

There are two sets of criteria applicable to determine eligibility for funding under the Athlete Assistance Program.Footnote 67 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 68 The National Sport Organizations must meet the national team and high-performance minimum delivery or performance standards evaluation criteria.Footnote 69

To be eligible, athletes must generally be Canadian citizens or a permanent resident. 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 70 They also need to be part of a National Sport Organization’s high-performance program.Footnote 71

However, athletes attending foreign post-secondary educational institutions, including National Collegiate Athletic Association institutions, who are receiving an athletic scholarship, are not eligible for Athlete Assistance Program funding for the months in which they are attending these institutions. This also applies if the National Collegiate Athletic Association affiliated institutions school is in Canada.Footnote 72 However, they may still receive Living and Training support when they are involved in national team training and competition activities and are not attending the school.Footnote 73

Athletes in Olympic and Paralympic sports that 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 an upcoming Olympic or Paralympic Games.Footnote 74

Some athletes are ineligible for Athlete Assistance Program support.Footnote 75 This includes athletes who have signed contracts with professional leagues. However, athletes on contract or regularly competing in leagues other than the National Basketball Association, the National Hockey League and Major League Basketball may be eligible for nomination for Program support under specific circumstances.Footnote 76

Funding under the Athlete Assistance Program is available to athletes who meet what is referred to as “carding criteria.”Footnote 77 The carding process, which includes establishing carding criteria, involves the following steps:

Athletes approved for carding receive support for the period in which they are approved. The carding cycles are normally 12 months long. Sometimes, the timing of major events may require that the carding cycle be shorter or longer than 12 months in which case an organization may negotiate a shorter or longer carding cycle with Sport Canada.Footnote 78

Hosting Program ($26.3M in 2023-2024)Footnote 79

The Hosting Program provides financial support to sport organizations that are hosting international sport events and the Canada Games. The objectives of the Hosting Program are:

The Hosting Program supports four different types of major games:

The Federal Policy for Hosting International Sport Events provides the guiding principles of the Hosting Program. From a funding perspective, and subject to the budget of the Hosting Program and the necessary approvals, the Government of Canada may provide support for:

The application process and requirements for each type of event vary. For example, applications for funding for International Major Multisport Games must be submitted prior to initiating a hosting bid.Footnote 83 This requirement does not apply for other international events.

Similarly, general applications can usually be made on an ongoing basis.Footnote 84 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 85

Other specific elements concerning International Multisport Games for Aboriginal Peoples are worth noting. In particular, funding for the North American Indigenous Games is 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 86 The level of federal funding provided is based on a federal-provincial/territorial framework.Footnote 87 In addition, 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 88

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 89 The level of funding provided is also based on a federal-provincial/territorial framework.Footnote 90 Sport Canada provides funding to the Canada Games Council for the travel costs of participants, except for those from the host province or territory.Footnote 91

Bilateral agreements with the provinces and territories

As previously noted in Chapter 3, the federal government supports provinces and territories through bilateral agreements. This support is generally provided under the Sport Support Program and the Hosting Program.Footnote 92

The purpose of these agreements is to encourage sport participation and physical activity among children and youth.Footnote 93 Appendix 5 provides a breakdown of the funding amounts provided to provinces and territories under the Sport Support Program and the Hosting Program from the 2020-2021 fiscal year to 2023-2024.

Public Health Agency of Canada and other sources of federal funding

As discussed in Chapter 3, the mandate of the Public Health Agency of Canada is to share information about and promote the benefits of being active, develop guidelines for physical activity and provide information for injury prevention and management in sport and physical activity, including concussion prevention.Footnote 94

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 95 In the 2023-2024 fiscal year, over $5 million was provided to ParticipACTON to promote the benefits of physical activity through public education campaigns, research, and the development of tools and programs to help Canadians become more active.Footnote 96 Under the ParticiPARKs program, the design phase of four outdoor parks was completed. These parks are located in La Ronge (Saskatchewan), Winnipeg (Manitoba), Brampton (Ontario) and Fredericton (New Brunswick).Footnote 97

Healthy Canadians and Communities Fund

The Healthy Canadians and Communities Fund supports specific initiatives that reduce the risk factors of chronic disease.Footnote 98 One of three behavioural risk factors targeted by this program is physical inactivity. Funding is offered to a wide variety of organizations, including private and non-profit organization, governments and agencies, Indigenous organizations, health authorities, and schools and universities. Organizations may request from $200,000 to $3,000,000 in funding for projects 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 99 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 100 While this matched funding does not have to be confirmed at the time of application, 50% of the total matched funding must be secured before a funding agreement can be signed. The remaining 50% is required before the project's final year.Footnote 101

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 102

The program also aims to fund a diversity of projects, meaning that decisions take into consideration the location of the project, the communities and populations that will be served, the funding stream (i.e., the behavioural risk factor that is targeted) and the size of the organization.Footnote 103

Intersectoral Action Fund

The Intersectoral Action Fund supports policy-level initiatives aimed at targeting the social determinants of health, including access to environments that promote physical activity.Footnote 104

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 who had ideas to improve healthy living in their school, notably through physical activity.Footnote 105

Under the School Health Grant for Youth, micro-grants of $1,000 were awarded on a first-come, first-served basis.Footnote 106 To receive funding, projects needed to meet specific program eligibility criteria.Footnote 107 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.Footnote 108

Other sources of federal funding

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 109

Provincial and territorial 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, as well as community initiatives. Each program has its own eligibility requirements and conditions of funding. As will be discussed in greater detail later in the report, this can include the requirement for sport organizations to adopt safe sport policies (Chapter 15) and good governance practices (Chapter 7).

For example, the Government of Ontario administers the Ontario Amateur Sport Fund which provides funding to recognized Provincial Sport Organizations and Multisport Service Organizations in the province.Footnote 110 Under the 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 111 Additionally, Provincial Sport Organizations and Multisport Service Organizations need to be endorsed by a National Sport Organization funded by Sport Canada.Footnote 112 The Ministry is responsible for granting recognition status to sport organizations and monitors their compliance with the recognition criteria and obligations.Footnote 113

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 114 Typically, these organizations become responsible for funding Provincial and Territorial Sport Organizations and Multisport Service Organizations, as well as administering other programs.Footnote 115

With respect to the sources of provincial and territorial funding, as noted above, provinces and territories are recipients of federal funds under bilateral agreements with the federal government.Footnote 116 Some provinces and territories also rely on third-party funding, like the profits from the sale of lottery tickets, to support their sports sector.Footnote 117

It is difficult to accurately analyze the available data on the exact amounts allocated to sports per 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 118 While not direct government funding for sport, these tax credits do provide financial assistance to parents for enrolling children and youth in sport and physical activities. We also note that many provinces invest in capital infrastructure for sport and recreation.

Municipal funding

We briefly note that municipal governments can also offer grants and contributions to support recreation in their community. The purpose of these grants can include increasing access to recreation programs or improving facilities.

Participant perspectives on funding

Funding crisis

There is broad consensus that the sport system is underfunded. Time and time again, we heard the same thing: the core federal funding has not increased since 2005. We were told that National Sport Organizations require a $104 million increase in annual federal government funding.Footnote 119 According to the Canadian Olympic Committee and Canadian Paralympic Committee Budget 2024 Request, a five-year forecast shows that the National Sport Organizations will accumulate a collective deficit of roughly $134 million attempting to deliver on their core mandate.Footnote 120 Some have suggested that the deficit is in fact higher.

There have been many calls for the federal government to increase funding for National Sport Organizations. This need gained public attention, with the media briefly reporting on the funding crisis in 2024 and 2025.Footnote 121 In 2024, for instance, there were media stories which covered the Canadian Olympic Committee and the Canadian Paralympic Committee’s call for an additional in $104 million in federal funding. These organizations had also released the results of a study conducted by Deloitte on the financial health of Canadian National Sports Organizations, which illustrated the extent of the funding crisis impacting these organizations.Footnote 122

In their 2024 Budget Request, the Canadian Olympic Committee and the Canadian Paralympic Committee outlined some challenges facing National Sport Organizations. They noted that purchasing power has decreased by 33 % since the last funding increase in 2005.Footnote 123 It was emphasized that that a new injection of funds was critical to address the funding shortfalls.Footnote 124 The 2024 Budget Request also outlined some of the economic benefits of sport for Canada. Two of the benefits mentioned were that sport tourism generated $7.4B for Canada’s economy in 2019 and that a 1% increase in physical activity can save $1 billion annually.Footnote 125

In 2025, the Canadian Olympic Committee and the Canadian Paralympic Committee appeared before the House of Common’s 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 126 The Standing Committee subsequently recommended that the core funding allocated to National Sport Organizations be increased to adjust for inflation since 2005.Footnote 127

The Canadian Olympic Committee and the Canadian Paralympic Committee were not alone in expressing concerns about the enormous funding shortfall that all sport organizations are facing. 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 particular need for increased funding for Indigenous sport organizations and initiatives in parasports.

We were advised that the freeze on core federal funding places immense inflationary pressures on all those involved in sport in Canada, including rising costs for facilities, equipment, insurance, staffing.

We were told that adequate funding is essential in the sport sector, as it directly influences the quality of facilities, access to training resources, and overall athletic performance. It was highlighted on numerous occasions that the chronic lack of funding creates pressure on sport organizations who are not able to deliver their programs and services.

For instance, public reports have highlighted the impact of these funding shortfalls on National Sport Organizations:

Many National Sport Organizations and Multisport Service Organizations shared with us that they often worry that they will not be able to meet payroll. Some National Sport Organizations may even be forced to shut down if the funding gaps are not addressed. Most of these organizations cannot fulfil 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 sport environments and that sport organizations cannot fulfil their roles of ensuring safe and inclusive sport without an increase in funding. 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 the hiring of qualified coaches and support staff, contributing to improved athlete development and performance.

Additionally, we were informed that athletes and para-athletes are also struggling with insufficient funding and inflationary pressures. Many told us that the funds provided through the Athletes Assistance Program are not enough to support them. We were told that support for para-athletes is often not top of mind. For example, when there was an increase to the Athletes Assistance Program, there was initially no corresponding increase for high-needs athletes supplementary support. This situation was only corrected at the insistence of parasport organizations.

We learned that many cannot afford basic necessities, and some are living below the poverty line. A common concern expressed was that uncertain funding caused significant stress. Many were considering leaving their sport due to inadequate financial support.

On various occasions, we were advised that the financial strain placed on sport organizations is being passed onto sport participants. For example, athlete fees have generally increased. It was also brought to our attention that some athletes are required to provide some of their carding money to their National Sport Organizations. The Commission also learned of many athletes having to pay their own travel costs and fees to attend necessary trial events for national and international tournaments, and having to subsidize their training and nutrition programs. These realities underscore the significant financial challenges experienced by Canada's high-performance athletes. These challenges, which are powerful disincentives, impede access to high-quality sporting competition and represent costs that may be prohibitive for many.Footnote 129

Although 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 130 significant financial pressures continue to exist for all high-performance athletes, including para-athletes.

Finally, some participants suggested that Canada may not be investing in sport to the same extent as other sport leading countries. We were advised for example that, in Australia, sport represents nearly 0.09% (624 million AUD) of the federal Australia budget in 2022-2023Footnote 131 which coincides with a contribution of sport to the country’s Gross Domestic Product in the amount of $26 billion (AUD).Footnote 132 This amounts to approximately 1% of the Australian total Gross Domestic Product.Footnote 133

Funding priorities

On various occasions, we were told the federal government funding allocation disproportionality prioritizes winning medals and high-performance athletes, as opposed to increasing sport participation.

Similarly, as previously explained, 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 the final decision on funding allocation, it was suggested that Own the Podium had an inordinate influence and authority over National Sport Organizations. A common sentiment was that Own the Podium is responsible for the emphasis on medals for funding and the culture of "winning at all cost.” However, some we spoke to felt the focus on winning was the product of the federal government’s decisions.

Critics of a performance-based model for funding noted that when the focus is on winning, it becomes the only measure of success. This can come at the expense of other values, including a willingness to report and address allegations of maltreatment and abuse. Many we spoke with expressed concern that the culture of “winning at all costs” fostered an environment where victims, survivors and witnesses of abuse and maltreatment were silenced. We were also advised that many were afraid to report maltreatment to Sport Canada and Own the Podium, fearing they would lose their funding.

Although Own the Podium has shifted their focus to supporting Olympic and Paralympic athletes in “winning well,” many were skeptical that the 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.

With this in mind, we heard a broad consensus that it was time to shift funding priorities to be more inclusive and focused on increasing participation in sport. Many expressed a desire for increased support for community physical activity and sport to be more inclusive of a range of participants. 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.

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 not enough given the increasing cost of hosting the games due to inflation. It was also noted that provinces and territories should increase their investments to ensure the sustainability of these games.

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 are not providing adequate support for Indigenous people living in urban areas.

Short-term funding and cash flow challenges

Overall, a critical issue 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.

With respect to targeted or special project funding, the Commission was informed of significant concerns about its temporary nature. Although sport organizations very much welcomed receiving funding to address issues such as diversity, equity and inclusion, Indigenous sport or safe sport, many noted that short-term funding was an inappropriate means to address these issues. These issues are long-term priorities and require sustained, core funding so organizations can make 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 only told that new funds were available shortly before the fiscal year end, and that they were required to spend the money in a matter of weeks. This practice undercuts the organizations’ ability to plan and spend funds responsibly.

It was suggested that a clear, long-term strategic policy is needed to provide greater certainty and stability to the sport system. This policy should serve as the foundation for clearly articulated funding criteria for core, multi-year funding. It was further suggested that a regular funding schedule be established to ensure that sport organizations receive their funding on a consistent and timely basis.

Other sources of funding

Many participants expressed that the federal government needs to diversify its sources of revenue to sustain federal funding for sport. A variety of proposals were shared during our engagement activities. Some suggested that the existing funds within multiple ministries should be redirected to supporting the sport organizations and athletes. Without being exhaustive, some other suggestions were that:

Others suggested looking beyond the federal purse for additional funding for sport. In this regard, many noted the significant potential of sport-betting revenues if dedicated to sport and physical activity. The Canadian Olympic Committee and the Canadian Paralympic Committee previously recommended to the House of Common’s Standing Committee on Finance that the federal government recognize that federal tax revenues from single sport betting would offset the investments required to stabilize the Canadian sport system.Footnote 134 This suggestion was repeated by many during our engagement activities.

The Canadian Olympic and Paralympic Committees 2024 Budget Request notes that in 2023, the federal government raised, just in Ontario, over $60 million in Goods and Services Tax revenue from sport betting, and that this figure was project to grow substantially in the coming years.Footnote 135 We were advised that provincial and territorial governments receive significant revenues from sport betting. It was also highlighted that many Provincial and Territorial Sport Organizations receive funding from provincial and territorial lottery funds.

Additionally, the Commission was informed of other countries who 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, totaling around 400 million USD 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. We were advised that Japan designates three-quarters of its lottery sales profits towards diverse sports projects, with the Sports Promotion Lottery channeling 102 million USD annually into community sport. In the United States, we were informed that Colorado has allocated lottery proceeds to fund recreation space.

We heard a range of opinions about the value and ethics of lottery and sport 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. On the other hand, some felt that given governments have chosen to legalize gambling and lotteries, the tax proceeds derived from such activities might well be dedicated to supporting healthy lifestyle programs, like sport and physical activity programming.

A wide variety of other potential funding sources were noted to the Commission, including 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 sport betting and lotteries.

Beyond expanding governmental funding, it was also suggested that sport organizations should be responsible for finding other sources of funding, as government spending alone cannot sustain the entirety of the sport system. In this respect, we understand that National Sport Organizations have attempted to diversify their revenue sources with varying levels of success.

Most sport organizations are recipients of donations and corporate sponsorships. 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.

It remains that most sport organizations rely largely on government funding and membership fees. We note that many expressed a deep appreciation for the corporations and donors who currently support sport at all levels. Nevertheless, for National Sport Organizations, these other sources of revenue are insufficient to bridge the funding gap caused by the stagnation in federal government contributions.

Application and reporting process

The Commission heard from many organizations about a variety of administrative burdens and funding challenges that were encountered when applying for funds from Sport Canada. We were informed by participants from all levels of sport 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.

The perception of many federally funded organizations was 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 the 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 amount of detail and the extensive nature of the application, and more with the fact that the applications were frequently being 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 an additional 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 an unnecessary duplication of efforts by sport organizations.

Monitoring and compliance

Participants shared significant concerns with a perceived lack of monitoring of sport organizations by Sport Canada. They told us that Sport Canada was not providing adequate oversight over funding recipients. In this respect, we understand that Sport Canada reviews the reports submitted by sport organizations in accordance with their contribution agreements before releasing funds. There are also ongoing conversations with sport organizations as a part of the funding cycle regarding their compliance with these agreements.

Provincial, territorial and grassroots levels of sport

With respect to funding at the provincial, territorial and grassroots level of sport, many 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 organizations that are 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 the availability and affordability of programming, as additional costs are often passed on to families through memberships and fees.

Provincial and territorial governments also noted that sport is becoming increasingly expensive and unattainable for many. Even where registration is affordable, the high cost of the equipment can pose challenges to participation.

Funding in the sport system: preliminary findings and recommendations

Funding for National Sport Organizations: preliminary findings

Based on our engagement with members of the Canadian sport system, recent studies and reports, and our own independent review, there is no doubt that National Sport Organizations are facing a financial crisis. The core funding for National Sport Organizations provided by the federal government has been frozen since 2005, and it goes without saying that the cost of living has dramatically increased since then. The extensive research into the financial health of National Sport Organizations, which the Commission received, confirms that these organizations are suffering significant financial hardship.

An examination of Canada’s spending in sport is critical. In 2022-2023, approximately 0.082% ($327.1 million) of the Government of Canada’s budget was allocated to sport.Footnote 136 At the provincial and territorial level, on average, less than 0.1% of total government budgets are allocated to sport and recreation.

The Commission also recognizes that it is important to consider how Canada compares to other countries in terms of its investment in sport, particularly in light of participants suggesting that Canada may not be investing in sport to the same extent as other sport leading countries. The Commission will further address this issue in its Final Report.

Almost all National Sport Organizations depend on federal support to fulfill their leadership responsibilities for their sport. These responsibilities include providing professional development for coaches, selecting and managing of 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 by additional sources is insufficient to bridge the funding gap. As a result, sport organizations are often left with shrinking budgets and growing deficits.

Additionally, National Sport Organizations are facing increasing demands. They are tasked with creating safer 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 contributes to the safe sport crisis and hinders the ability of National Sport Organizations to fulfill their basic functions. It negatively affects the accessibility and quality of the programs. In the face of this funding crisis, many organizations have had to reduce programs and activities. Some may even be forced to cease operating entirely if the funding gaps are not addressed.

Moreover, there is a need for greater certainty in funding. The current funding model is short-term, ad hoc, and offers limited visibility. This model makes it difficult for sport organizations to adequately plan and expend their funds. Delays in the payment of certain funding programs further increase these difficulties.

We recognize that the federal government has taken positive steps to improve the application process. However, more needs to be done. The funding applications that sport organizations must complete are complex, not user-friendly, costly, and time-consuming. There is also a significant amount of duplicated efforts for sport organizations applying to multiple federal programs, as most programs require separate applications.

The complicated nature of these processes increases the administrative burden on sport organizations, their staff, and volunteers, who are already under significant strain. Furthermore, some programs have different reporting requirements and processes, adding further administrative burdens and challenges to the search for additional funding.

There is a lack of adequate monitoring and oversight of sport organizations receiving federal funding through the Sport Support Program. Despite the creation of the 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 the conditions of their funding agreements, including those that require the implementation of good governance practices. We also heard that sport organizations are using funds for reasons other than the designated purposes.

Fundamentally, it is essential to have confidence that the oversight of federally funded organizations also involves appropriate levels of monitoring or auditing. It is also important that sport organizations understand their responsibility and, most importantly, comply with the conditions of funding, including requirements related to governance and safe sport.

As detailed below, our preliminary recommendations for funding seek to:

Timing of Funding for National Sport Organizations: preliminary findings

It is clear to the Commission that there is an urgent need for increased funding to support National Sport Organizations. The fact that core funding for National Sport Organizations has not increased has contributed to a financial crisis. As previously noted above, the Canadian Olympic Committee and the Canadian Paralympic Committee requested, on behalf of 63 National Sport Organizations, a $144 million annual increased 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 137

We heard that an immediate injection of funds is required for federally funded sport organizations to be able to fulfil their mandates. It is important to realize that the underfunding of the sport system has contributed to the safe sport crisis. Appropriate funds are required for sport organizations to create safe sport environments by, for example, implementing governance best practices, developing safe sport education and training programs for their participants, implementing screening procedures, and introducing mechanisms to address maltreatment. Providing appropriate support to federally funded sport organizations is essential to protect the safety of everyone involved in the sport system. A safe sport system benefits society at large; an unsafe one poses a threat to all.

In our view, there is an urgent need for an injection of funds to ensure that National Sport Organizations can continue operating. This need is especially pressing for winter sports, given the upcoming Olympics and Paralympics Winter Games in 2026. This injection of funds should, among other things, take into consideration the impact of global factors on National Sport Organizations, such as inflation, tariffs, and international exchange rates.

As previously discussed in Chapter 4, the Commission acknowledges the unique circumstances of parasport organizations. We recognize that additional costs are involved in parasport to meet the unique needs of these athletes. Therefore, we believe that additional funding should be allocated to National Parasport Organizations.

Additionally, the amount of funding required to support sport organizations and to achieve long-term priorities, such as improving safe sport, will change as the financial landscape and the needs of these organizations evolve. A regular, ongoing analysis of the effectiveness of government funding across the Canadian sport system would provide the federal government with crucial information to determine whether government funding is achieving its intended objectives and if it aligns with the current needs of the sport system.

While it is clear that the sport system is underfunded, increasing funding is not a silver bullet. Money, by itself, will not resolve all the underlying issues in the Canadian sport system. All involved in the sport system have a responsibility and duty to carefully review their funding allocation and spending practices. This certainly applies to National Sport Organizations, national Multisport Service Organizations and Canadian Sport Centres and Institutes receiving federal funding. It is important that these organizations seek efficiencies within their own organizations and across the sport system.

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 believe it should explore alternative revenue sources that can be directly invested into the sport system. During our engagement activities, the proposal to invest taxation revenues generated from sport betting and lotteries was frequently suggested. We further note that the federal government has previously used the funds from a lottery ticket scheme to raise money for the sport sector.Footnote 138

In addition, national-level sport organizations should be creative in diversifying their revenue streams, all while ensuring that increased costs are not passed on to sport participants or volunteers. This includes exploring opportunities for partnerships, collaborations, and sponsorships. 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.

Funding for National Sport Organizations: preliminary recommendations

The Commission therefore recommends that:

  1. The Government of Canada urgently increase the core funding allocated to National Sport Organizations under the Sport Support Program to account for inflation since 2005. The funding needs to be adequate to support core operational requirements and address long-term priorities, including improving safe sport.
    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 139
  2. The Government of Canada allocate additional funding to specifically support National Parasport Organizations.
  3. The Government of Canada increase the core funding allocated to National Sport Organizations, national Multisport Service Organizations and Canadian Centres for Sport and Institutes, and periodically review the core funding allocated to these organizations to determine whether the funding is adequate to support core operational requirements and address long-term priorities.
  4. The Government of Canada, following a reasonable grace period, require 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.
  5. The Government of Canada study additional sources of government revenue to ensure it has sustainable means to support federally funded sport organizations. These sources of revenue include, but are not limited to, tax revenues from single sport betting.
  6. All sport organizations, including National Sport Organizations, national Multisport Service Organizations and Canadian Sport Centres and Institutes, explore and diversify their sources of revenue and examine processes and practices to ensure enhanced efficiency and effectiveness.

Centralization of federal funding for sport: preliminary findings

Currently, 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 may double the reporting requirements and potentially result in inconsistencies in governance and oversight.

It is also important to note 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 Commission is of the view that the Centralized Sport Entity (further described in Chapter 6) 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.

Centralization of federal funding for sport: preliminary recommendations

The Commission therefore recommends that:

  1. The Centralized Sport Entity as outlined in Chapter 6, once it is established, be responsible for receiving, allocating, distributing and overseeing all federal sport funding. Such responsibilities would include, but are not limited to:
    1. developing a comprehensive long-term funding strategy;
    2. developing funding-support criteria;
    3. making funding decisions;
    4. distributing funds to sport organizations;
    5. developing and monitoring a compliance and auditing regime to ensure effective use of funds.

Funding application process: preliminary findings

Many participants suggested that the application process and procedures need to be simplified and streamlined to increase the efficiency of the delivery of public funds. This would also serve to reduce the administrative burden on sport organizations.

In this respect, the Commission wishes to acknowledge the recent improvements made to the funding application process by Sport Canada. As described above, 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 sport organizations can apply for multi-year core funding.

Nevertheless, the application process itself remains very long, complicated, and costly for sport organizations that are already under considerable financial and administrative strain. Some noted that a simplified application process would enable sport organizations to focus on fulfilling their mandates rather than constantly seeking financial support. Others suggested that standardizing the applications would make the process easier.

We also wish to highlight that the Report of the Standing Committee on the Status of Women recommended that the “Government of Canada accelerate its review of the criteria it uses to grant funding to sports organizations [...].”Footnote 140

Funding application process: preliminary recommendations

The Commission therefore recommends that:

  1. The Government of Canada ensure that the funding applications and procedures to receive federal grants and contributions are clear, efficient, and accessible. This role should be transferred to the Centralized Sport Entity outlined in Chapter 6 once it is established.

Monitoring and auditing of funded sport organizations: preliminary findings

Where governments do provide public funds to sport organizations, this money cannot be freely given without oversight and accountability. It is important the Canadians 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. 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.

The Commission believes that improved monitoring and auditing of sport organizations is essential to ensure the appropriate use of funds provided by the federal government. The monitoring and auditing of sport organizations that receive federal funding should be proactive and regular. Such audits should ensure that sport organizations are meeting all the conditions of their contribution agreements, including the implementation of good governance practices as described below in Chapter 7, and the appropriate allocation of public funds. These examinations should also thoroughly assess the financial health and sustainability of funding recipients, the organizations’ operational efficiency, the cost of sport participation, and the degree to which past Sport Canada funding has achieved the desired results.

Without ongoing auditing and accountability, funding designed to advance important objectives like improving safe sport often remains ineffective or misapplied. The effective and efficient monitoring of federally funded sport organizations is fundamental to improving the sport system and safe sport in Canada.

Consideration should also be given to the monitoring process itself. The current monitoring process, like the funding application process, can place an unnecessary administrative burden on sport organizations. To help reduce this burden, it was suggested that the monitoring process be standardized and simplified. We heard that this was particularly important for small and medium National Sport Organizations with limited human resources. This could, for example, include annual check-ins and standardized performance metrics. 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 the development of their sport.

Monitoring and auditing of funded sport organizations: preliminary recommendations

The Commission therefore recommends that:

  1. The Government of Canada regularly and proactively monitor and audit federally funded sport organizations. This role should be transferred to the Centralized Sport Entity outlined in Chapter 6 once it is established.
  2. The Government of Canada 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 6 once it is established.

Long-term funding strategy for sport and physical activity in Canada: preliminary findings

The Commission is 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.

As noted above, 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. Nevertheless, there is a common perception that the federal government’s funding priorities have disproportionately supported high-performance and winning medals, to the detriment of advancing other sport and physical activity priorities that are important for Canadians.

For this reason, many suggested that 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, and that reflects a greater emphasis on health and physical activity. We also heard that evidence-based insights and analysis should directly inform such a policy, its design, implementation and evaluation.

Such a 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.

In this respect, the Commission wishes to highlight the Calls to Action 88 and 90 (i) from the Truth and Reconciliation Commission, as they relate to funding:

  1. 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.
  1. 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:
    1. 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 141

In addition to providing a long-term vision for Canadian sport, the federal government's funding strategy should 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 expressed that the federal government, by its overreliance on project funding, 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 the ability of sport organizations 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 sport 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 is meant 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 the core funding blocks, as referenced under the previous funding framework, were described 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 what is referred to as “binge spending,” which limits the ability of sport organizations 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.

Furthermore, the Commission believes that the federal government should use its spending power to influence the development of sport and physical activity programs in Canada. This can be achieved in two ways.

First, the federal government can, and does, attach conditions to the funding it provides to sport organizations and athletes. These conditions are part of contracts referred to as contribution agreements. Second, the federal government can continue to influence the behaviour of sport organizations by carefully considering the criteria it uses to decide who is eligible for funding and how that funding is allocated.

In other chapters of this Report, we have made preliminary recommendations that include the imposition of new funding conditions and evaluation criteria for the allocation of funds to sport organizations that receive federal funding. We believe these recommendations would improve both the sport system and safe sport in Canada. They can be found in the following chapters: Chapter 7, 14 and 17.

Long-term funding strategy for sport and physical activity in Canada: preliminary recommendations

The Commission therefore recommends that:

  1. The Government of Canada develop a comprehensive multi-year and evidence-based funding strategy focussed 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 6 once it is established.
  2. 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 6 once it is established.

Funding to provinces and territories: preliminary findings

The sport system is intricate, complex and interconnected. As will be discussed in greater detail in Chapters, 7, 8 and 16, problems that exist at the national level of sport, such as issues related to the governance of sport organizations and the prevalence of maltreatment, permeate the entire sport system, from the grassroots to the national level.

To meaningfully address these issues and improve the sport system for all Canadians, we believe that all governments need to come together and collaborate to implement innovative and lasting solutions.

The federal government should collaborate with each province and territory to implement measures that improve the sport system and safe sport in every jurisdiction. To achieve this, the federal government should leverage its spending power and increase the funding it provides to the provinces and territories.

In other chapters of this Preliminary Report, we have made preliminary recommendations on the conditions that should be attached to these funds. These conditions aim to harmonize the approach to safe sport and sport governance across the country. In other cases, we have specifically set out the types of provincial and territorial initiatives that should be funded.

Our preliminary recommendations on these matters can be found in:

Funding to provinces and territories: preliminary recommendations

The Commission therefore recommends that:

  1. The Government of Canada increase the funding it provides to provinces and territories for the development of sport and physical activity for the purpose of improving the sport system and safe sport in Canada.

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2025-08-28