From the smallest clubs to the largest national governing bodies, sports organisations share a common challenge – funding.
Sourcing the necessary finances to continue developing a sport, supporting players and paying admin and staff is a constant struggle.
In the search for a solution, Phil Wright, General Manager at ethical lottery provider Gatherwell, presents the case for fundraising lotteries and busts some of the common misconceptions surrounding the cost and effort involved in running them.
“Gatherwell is an external lottery manager, here to help sports organisations and other non-profits set up their own fundraising lottery to generate new income,” Wright says. “We provide comprehensive external lottery management for sports organisations, enabling them to run their own lotteries.”
Wright joined the Gatherwell team in 2019, drawn by the strong alignment between his personal values and Gatherwell’s mission of achieving positive social impact by supporting others to fundraise. He moved through various commercial roles within the business and has now served as General Manager for more than a year.
With a background in sports marketing and experience as a squash coach, Wright sees sport as a key area for growth, and an industry that will greatly benefit having lotteries as a key channel for fundraising alongside traditional revenue streams.
“I want to see the additional support going into sports clubs, many of which have been severely impacted off the back of Covid and then, more recently, the cost-of-living crisis. Lotteries can provide a regular and recurring forecasted income to these organisations, so they can become secure and robust.“
Gatherwell has now raised over £20 million for charities and good causes in the UK, and looking ahead Wright only expects more growth. “Gatherwell is part of Jumbo Interactive Group, an Australian lottery provider focused on investing in and building new technologies. We’ve got some of the best lottery technology and experts in the world.”
“Incentivised giving” is a term Wright uses to describe how lotteries operate and the fact that they can be mutually beneficial for a sports organisation, its community and supporters. “There’s value for everyone involved – sports organisations receive ongoing funding and players have chances to win prizes – that’s incentivised giving,” he explains.
The benefits are not limited to financial. “The engagement created among current members, supporters, players, friends and family is a great retention tool for sports organisations and NGBs (national governing bodies),” he says, emphasising how subscription-based membership organisations can take advantage.
One of Gatherwell’s existing clients, Hibernian Football Club, is a prime example of Gatherwell’s solutions in action. This lottery model supports the Scottish Premiership team’s league ambitions and the causes its fans care about.
“The platform is fully branded to match the look and the feel of Hibernian Football Club. They use the platform to fundraise and generate income for their academy, which supports the next phase of players coming through into the first team. All funds raised go into a single pot. In Hibernian Football Club’s case, that all goes towards their academy.”
Gatherwell also offers a solution for NGBs and other sports organisations with a membership structure that enables all entities to join forces and fundraise together, as Wright explains.
“We have a unique product that caters to organisations that want to bring multiple causes into the fold, and we’re already in conversation with several NGBs in the UK who are looking into how this will help them generate additional income.
“This type of lottery will typically have the overarching organisation’s branding, but can have many causes, clubs, or organisations underneath it, enabling everyone to benefit as a result. Rather than those organisations having to go off and set up their own lottery, they can all sit under the one branded lottery.”
According to Wright, this model means, “Affiliated clubs and organisations are provided with a really simple, easy and trusted way to fundraise on a digital platform.”
“It’s a win-win,” he adds.
Reflecting on why UK sport is yet to seize such an opportunity in earnest, despite the numerous success stories in Australia and across other industries, Wright points to a common misconception that lotteries are expensive to run and that costs are too high to justify the initial outlay of set-up and prizes. It’s a myth that Wright is quick to dispel.
In fact, Gatherwell’s lotteries incorporate generous income split models. Wright describes how, “Up to 63% of funds raised go directly to the sports organisations they were intended for, which is almost double what other lotteries provide.”
As for the remaining funds raised, “That’s reserved for prizes and administration costs,” Wright explains. It’s a tantalising prospect for cash-strapped organisations in sport, and ensures that everyone involved is incentivised in the process throughout.
With almost 600 sports clubs under their belt, Gatherwell’s team is well versed in how time-strapped clubs can be. That’s why they equip clubs with another tool for their arsenal: marketing support. According to Wright, Gatherwell provides, “A suite of marketing materials both for the NGB and the clubs themselves, leaving employees free to focus on day-to-day operations.”
A common question asked by organisations starting out with a lottery is how they can afford a major prize or cash jackpot. As Wright explains, Gatherwell makes this easy. “We offer a £25,000 weekly jackpot prize from day one, regardless of the number of tickets sold. This ensures there is no risk to the sports organisation when it comes to covering the prize.”
When addressing concerns regarding the UK’s strictly regulated UK Gambling Act and adhering to compliance, Wright explains, “Gatherwell’s experience in the sector ensures their partners have confidence and trust in running lotteries safely and securely, enabling the best fundraising outcomes.”
As a final thought, Wright explains how a single piece of client feedback from the London Titans Wheelchair Basketball Club perfectly encapsulates the Gatherwell offering. After setting up a lottery themselves with Gatherwell, Wright recalls that they had one simple comment, “Why would you not sign up to the lottery?”
It’s a question always worth asking when the opportunity on offer seems too good to be true; however, Wright is adamant that there is no downside to Gatherwell’s approach for anyone involved. “Having their own lottery is helping to nurture the sports stars of the future – which is something we want to enable more sports clubs and organisations to be able to achieve.”
Gatherwell gives sports clubs and national governing bodies the competitive edge by helping them, and their member organisations, fundraise. With low fees, simple setup and excellent returns, start scoring fundraising goals with a Gatherwell lottery by visiting their website or getting in touch.
Phil Wright, General Manager, Gatherwell
