Introduction.The decisive support of sport in the Czech Republic is achieved from public financial means through municipal budgets. According to studies and statistic data, 4/5 of the total support is provided by municipalities and 1/5 is represented by direct expenses from the state budget, which is primarily aimed on the support of professional sport and national representation. Municipal financial means aim on the broader support of all sport activities of their citizens, including their active recreation.
Aim of the study. The case study proposes a new approach to restructuring of sport financing for a municipality with 24 thousand inhabitants. The methodical approach is based on the analysis of financial flows of institutional and non-institutional sport support, analysis of municipal budget, analysis of current sport infrastructure and current grant policy. By using comparative methods with other cities in the Czech Republic, it was discovered that Litoměřice has above average percentage share for the operating financing of sport (2.9 – 11.3 % of the municipal spending), high ratio of institutional subsidies (72 – 97%) and low but increasing share of non-institutional sport support (3 – 28%). Based on the analysis, there is no need to increase financial means for sport, which could have negative budget impacts in the future. Instead, the proposal focuses on rebalancing the institutional support in favour of demand driven non-institutional support – in particular the use of grant policy with the help of program financing.
Keywords: institutional support, budgetary implications, municipal sport, grants, municipalities.
JEL Classification: D61, D62, H71, H75, I38.