The question of how to fund youth sports programs from public funds is increasingly relevant. In Latvia, one basketball school is forging a new path. Basketbola Skola Talsi (BST) has secured social enterprise status, a move that grants the organization 100% discount on the use of municipal sports infrastructure, offering a potential model for wider adoption.
The innovative approach comes at a time when ensuring access to sports for all children, regardless of socioeconomic background, is a growing concern. BST currently provides training in eight locations, significantly outpacing the municipal sports school’s basketball division, which operates in only two. This wider reach is particularly crucial in regions where the financial viability of youth sports programs is threatened by declining enrollment and limited affordability for families.
“The social enterprise status gives us the opportunity to apply for an Altum grant, which we will submit an application for immediately,” explained Edgars Kuks, head of Basketbola Skola Talsi. “This may assist us provide free training to more children, particularly families with three or more children. In exchange, we could receive some funds from Altum.” Kuks emphasized the school’s proactive approach to finding sustainable funding models, noting that the Ministry of Welfare recognizes educational institutions working with children as eligible for this status and subsequent funding opportunities.
Kuks, who relocated to the Talsi region with his family two and a half years ago, believes that municipalities should evaluate and fund all sports schools and clubs based on the same criteria, especially given existing state-level funding mechanisms. “The assumption that municipal sports schools are entitled to certain privileges is illogical,” he stated.
The move by BST echoes a recent case in Sigulda, where the local municipality rejected a collective petition from nearly 500 residents requesting equal support for a private football school, Sigulda, as its municipally-owned counterpart. Experts criticized the decision as politically motivated and based on trivial arguments. While private sports schools receive state accreditation and funding on par with municipal institutions, local authorities rarely extend the same level of financial support, often favoring their own establishments.
“There should be a level playing field,” Kuks argued. “We consider it normal that municipal sports schools can get any free time in the sports hall, but a private sports school cannot. But all parents pay taxes, they live here, and they should be able to choose where they send their child, to which coach, to which organization. Why should one be placed above the other? I see no justification for that.”
BST is drawing inspiration from the Bertānu Valmiera Basketball School, a successful public-private partnership Kuks previously worked with as a coach. This school operates as a foundation with stakeholders including the Bertāns brothers, the Valmiera municipality, and the Valmiera professional basketball club. The municipal sports school’s basketball division was integrated into the foundation, with a portion of the municipality’s basketball funding redirected accordingly. Importantly, the new basketball school also retained state funding for coach salaries that had previously been allocated to the municipal sports school.
Kuks believes this model represents a viable path forward for youth sports development, enhancing financial accessibility for families. He drew parallels to his experience coaching children in Spain, where similar partnerships have fostered widespread participation. “It’s definitely not a business, so as far as our business is concerned, one of the basic pillars is that we do not make a profit,” Kuks explained. “We can use the funds that come into the company for economic activity as defined in the statutes. We pay salaries, we pay bills, but we do not take out dividends. So it’s hard to call it a profitable business.”
The social enterprise status is available to sports clubs registered as companies that offer significant benefits to socially vulnerable groups. This status unlocks access to European Union and Altum funding, as well as tax breaks. The Ministry of Welfare reports that 26 companies in the sports sector in Latvia have been granted social enterprise status, though specific data on how many are sports education institutions is currently unavailable.
The success of Basketbola Skola Talsi’s approach could have broader implications for youth sports funding models across Latvia and beyond. By leveraging the benefits of social enterprise status, BST is not only ensuring access to basketball training for more children but also demonstrating a sustainable path for other organizations to follow. This innovative model prioritizes community access and financial viability, offering a potential solution to the challenges facing youth sports programs in a changing economic landscape.
As Basketbola Skola Talsi prepares to submit its application for the Altum grant, the organization is poised to expand its reach and impact. The outcome of this application will be a key indicator of the potential for this social enterprise model to scale and provide opportunities for even more young athletes in the Talsi region and beyond. The school’s commitment to inclusivity and financial accessibility positions it as a leader in the evolving landscape of youth sports development.
What’s Next: Basketbola Skola Talsi will submit its application for the Altum grant in the coming weeks. Updates on the application process and any resulting program expansions will be available on the school’s website: https://bstalsi.lv/.
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