Sports industry: A Service Court For Legends

In today’s newsletter, we exclusively discuss the sports industry as a spring to lift up more leaders & revenues along with its future perspective 

The most awaited sports event of the year Tokyo 2020, with one more opportunity for Tokyo and Japan to gain the world’s attention, there was a palpable sense of excitement across the city and around the world. Unprecedented levels of enthusiasm were already seen in Japan when 7.5 million residents signed up for Tokyo 2020 ID registration and over 3.2 million tickets were sold during the 1st phase of ticket sales.



But with the corona virus pandemic raging around the world, the excitement had waned down. The International Olympic Committee and the Tokyo Organizing Committee on March 24 decided to put off the games until at least 2021.Sport is a unifier. Sport is a field of passion and emotion like no other.

---

Global Sports market:

• 2018- Value of $488.5 billion.
• CAGR (2014-2018)- 4.3%.
• CAGR (2019-2022)- 5.9%.
• 2022- Value at $614.1 billion.

Growth from 2014-2018 can be attributed to emerging markets growth and rapid urbanization. 

• NA is the largest market for the sports industry with 30% of the global market.
• AP and ME are expected to be the fastest-growing emerging market at annual rates of 9.04% and 6.2% respectively in the next few years.
• The USA to grow at a rate of 6%, South America at a rate of 5.3%.

What will drive growth?

• Increasing sports sponsorship.
• The growing popularity of esports.
• Economic growth.
• Increase in the number of internet-accessible devices.
• The emergence of multiple sports channels to capture viewership.

Sport in India is now considered as ‘the next big opportunity’ and contributes to 2 to 4 percent of overall employment. It was a belief that only Cricket will succeed in India but with the emergence of Hockey India League, Indian Badminton League, Pro Kabaddi, Indian Super league have proven that sports have a future in India as a business. 

• Apart from the conventional roles of sports team management, marketing, and communication, it has created opportunities for sports science, nutrition and coaching, physiotherapy, and many more.
  

According to POWA index, the Indian sports market is growing at 15% per annum against the global rate of 5%.

• According to Statista, the market size of the sports industry across India was over INR 77 billion in 2018.

The majority of media consumption in the sports industry is carried by IPL followed by the Pro kabaddi and Indian super league which has gained popularity recently.

• According to ESP Properties, Revenue from sports advertising in India has risen from $1 billion to 8,000 Cr in 2020.
• Vivo had invested Rs 2,199 Cr to be the title sponsor of IPL in a 5-year deal.

India has not only made a mark in sports but also in the global sports goods market.

• Total exports of sports goods from India- US$ 313.48 million (FY 18-19) and US$ 122.76 million in FY 19-20 (till July 2019).
• The sports industry exports 60% of its total output to sports-loving people round the world.
• Top destinations for sports goods- US, UAE, UK, Australia, Germany, Netherlands, France, South Africa, Sweden, and Canada.
• India has emerged as the leading international sourcing destination for inflatable balls and other sports goods for international brands such as Mitre, Lotto, Umbro, and Wilson.
• Jalandhar and Meerut account for nearly 75% of the total production of sports goods.

The elevated sports following also brings about an increase in the sales of merchandise and sports equipment, which further impacts every domain right from sports manufacturing to retail.

• Indian sports and fitness goods market was valued at US$ 3,621 million in 2017.
• CAGR (2019-2024)- 9%.
• Market value in 2024- ~US $6,054 million.

Sports in India gaining momentum:

• One of the ultimate game-changers was the Indian Premier League, which not only took cricket following in India to a whole new level but also brought a revolution in other sports as well.
• Growing internet users with Jio coming in with Cheap data, rising economy, increase in spending power of the middle class have all contributed to the gaining momentum.
• Rise of Online streaming platforms like Hotstar and Sony Liv has also contributed.

Future of Sports Industry:

• Women’s sports will continue to build momentum. The momentum will also open unparalleled opportunities for the creation of new professional leagues, franchises, corporate sponsorships, and increase ticket sales.
• Esports will continue its rapid evolution. According to Deloitte, In 2020. The global esports market was expected to generate $1.5 billion in annual revenues mainly from sponsorships and advertising.
• Legalized sports betting could make a giant decisive step in the sports industry. There is potential for corruption and bribery among players, owners, teams, and leagues, for these reasons stringent compliance oversight will be required.
• 5G and cloud computing could open new possibilities in sports. The stadium fan experience can be revolutionized with instant replays, live-TV graphics, and much more. 5G enabled VR devices can allow fans to experience live games from virtually anywhere.

“Social responsibility is becoming more prevalent and impactful. Sponsored brands who have partnered with sports or any sports club have the perfect platform to communicate the social responsibility messages.

Do you think technologies like Athlete performance, Stadium experience, and fan engagement can make the biggest impact on sports?Write back to us, with your views and we shall publish the best of the opinions on our website in the newsletter section.

Also, check out our published article on how brand deals make sports stars Billionaires today!

Subscribe to our newsletter click here