The sports industry accounts for around 1.8 per cent of gross domestic product and is worth €2 billion annually in consumer spending, a seminar was told yesterday. Edward Power reports.

Sponsorship of Irish sport will reach €67 million in 2004, underlining the extent of its shift from an amateur set-up to an increasingly professional basis, said Mr Eoin MacNeill, head of sports law at A&L Goodbody.

Some €267 million has been invested in sports capital projects since 1998, proof that seismic changes have taken place over that time, he told the Business in Sport conference at UCD. "Like other businesses, sports are operating in a more complex and regulated environment."

The Goodbody figures are based on a comparative analysis with the UK and include revenues generated directly by sports and sale of athletic equipment, replica shirts, running shoes, etc.

The GAA and Football Association of Ireland (FAI) must maximise earnings from their marquee events to fund grass-roots development, the leaders of both organisations said.

Building sponsorship opportunities is essential as sporting bodies strive to nurture stars of the future, according to GAA president Mr Seán Kelly and FAI chief executive Mr Fran Rooney.

With the Republic's under-age soccer network among the world's largest relative to population, its funding needs are clearly significant, Mr Rooney said. In view of this, commercial opportunities were a priority, he said.

Fundraising is equally vital for the GAA, said Mr Kelly. Just introducing a child to hurling required a huge support structure, including financial resources.

Other speakers included Ireland rugby coach, Mr Eddie O'Sullivan; Ms Mary Davis, chief executive of Special Olympics 2003; and Mr Brendan Mullin, chairman of London-Irish rugby club.