Sponsors will demand sophisticated measurement to demonstrate the returns on their investment
the smallest category of revenue accounting for 14.5 per cent of total global revenue. However, it accounts for just over a quarter of all revenue in North America. Growth in merchandising revenue is closely linked with consumer spending patterns and overall growth is similar to gate revenues at 2.6 per cent CAGR generating revenues of US$20.1bn (£12.9bn, E15.1bn) in 2015, up from US$17.6bn (£11.3bn, €13.2bn) in 2010. Sports clubs are also seeing a larger
proportion of their merchandise transac- tions moving online which allows them to engage and interact with fans who can’t attend matches, including those living in other countries. This engagement helps to both monetise sports brands in those regions and markets, while also building demand for media coverage of the clubs involved.
www.sportsmanagementhandbook.com
Looking forward With reference to what the future might hold for the sports market in a world of increasing economic and political uncertainty, we believe: • Growth will come from the emerging sports markets in the BRIC countries and the Middle East, which will continue to offer scope for the development of new commercial opportunities – both in domestic and international sports events. • Sponsors will demand more sophis- ticated measurement techniques to demonstrate the returns on their investment. • Sports bodies and associations must, and will, introduce new regulations to control the cost base and levels of debt in their sports to leave a sustainable business model for future generations.
Broadcasting still generates the majority of income from media rights
• Sports bodies must balance the increased commercial demands of their sports with the need to maintain the integrity and unpredictability that make sporting competitions so exciting and appealing to their supporters. Across the world we’re seeing ever
closer convergence between the sport and entertainment industries as both sectors rise to the challenges brought by digital technologies, which are changing and shaping the way we spend our leisure time. This new digital environment is signifi- cantly contributing to the globalisation of both the industry and specific sports. l
Julie Clark is head of PwC’s UK sports practice.
www.pwc.com
SPORTS MANAGEMENT HANDBOOK 2012 29
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