RESEARCH
Outlook for the Global Sports Market to 2015
PricewaterhouseCoopers’ updated report on the global sports market predicts that revenues will grow to £93bn by 2015. Julie Clark reports
A
ccording to a new report by PricewaterhouseCoopers (PwC), which looks at the global sports market towards
2015, global sports revenues will grow to US$145.3bn (£93bn, E109.3bn) at an annual compound growth rate (CAGR) of 3.7 per cent. This is attributed to an improved economy, a rebound in TV advertising, the on-going migration of sports to pay TV and the resurgence of financial services and automobile compa- nies interest in sponsorship. North America remains the largest
market throughout PwC’s forecasts to 2015, followed by Europe; the Middle East and Africa (EMEA); and the Asian market. Latin America will remain the
North America is the largest
market for sport,
while Latin America will remain the smallest
smallest market. Growth in the sports market in the BRIC countries (Brazil, Rus- sia, India and China) strongly outpaced the overall global market during 2006 to 2010, but during the next five years this gap will narrow.
SPORTING REGIONS North America is still the largest market and growth rates will significantly outpace Asia Pacific and EMEA. While the balance of power is shifting to some emerging markets, which are hosting large-scale sports events over the next few years, the growth opportunities in the traditional developed markets are far from over. Latin America is projected to have the
highest growth rate at 4.9 per cent CAGR, partly due to the FIFA World Cup in Brazil in 2014, followed closely by North America at 4 per cent CAGR. The EMEA is the second largest region
with US$42.8bn (£27.4bn, E32.2bn) or 35 per cent of the total global revenues.
This region is projected to have the
slowest growth rate at 2.9 per cent. This figure partly reflects the underlying eco- nomic conditions and is a reflection of the timing of major sports events, with 2010 being such a strong year in EMEA – given the South Africa FIFA World Cup – and 2015 being a relatively quiet year. EMEA shows the most fluctuation over
the period, given the 2012 London Olympic and Paralympic Games and the Football European Championships in Poland and Ukraine and then in 2014, the Winter Olympics in Sochi and the Commonwealth Games in Glasgow. If the impact of these one-off events is excluded, the underlying growth rate is 4.6 per cent. What has been clear however, through
Component
this era of economic uncertainty, is that the balance of global economic power is shifting to the East and this will help maintain the internationalisation as sports seek new revenues from the growing mid- dle classes in the emerging nations.
Global revenues split by region 2010 Global revenues split by region 2010
Latin America 5%
Asia Pacif ic 19%
North America 41%
Global revenues
We project that global sp US$121.4 billion in 2010 Global sports mark
2006
Global revenues 107,516 % Change
12.1
* At 2010 average exchange rates p = provisional Sources: PricewaterhouseCoopers LLP, Wilkofs
EMEA 35%
Globa US$12 due to Over t will be of 3.7 US$14 the pe of tota will se it star gains EMEA will ex over t of the 2010 b
32 Read Sports Management online
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