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Sport subsidies in Hungary

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Sport subsidies in Hungary
Introduction
Sports play an important role in the lives of every single country around the world. This is true in Hungary as well. But there is a huge difference between the sport life of Hungary and the sport life of the western countries, both in their efficiency and their structure. In western countries sport organizations have transformed into businesses in the capitalism, which means they all have their own revenues, costs, profits and their own markets. As a result the state does not have to play a role in the lives of these sport organizations. In contrast to this in Hungary the sport organizations were under the control of the state in the communism so they didn’t have their own revenues, costs, profits or markets. Sports were held a national concern and sports politics focused on the social benefits so the state financed the whole sport life of Hungary. After the political and economic change in 1990 the sport organizations were forced to adapt to the new conditions. Capitalism set foot in Hungary and as a result, change began toward the business model in sports.1 But the problem was that they had no revenues or markets so they could hardly survive. As a result the state has subsidized the sport organizations ever since then because sports are a national concern and they could not let all the sport organizations go bankrupt. But the problem with these state subsidies was that they slowed down the transformation of sport organizations into businesses because sport organizations could continue to rely on the money of the state without having to worry about finding different ways to make their own revenues. The current government introduced a new state subsidy program for the sports and I am going to analyze the effects this huge state subsidy could have on sport organizations, with special attention to football organizations. My main question is whether this state subsidy could help the transformation of sport organizations into businesses or only slow

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