Sports organisations need to work towards a sustainable business
CONTINUAL GROWTH According to the report, despite the world’s ongoing troubled economic climate, the global sports industry has continued to thrive – with many major sporting events proving to be more pop- ular than ever. The popularity of these major events
is supported by the on-going improve- ments in broadcasting and technology, which is allowing for better quality cov- erage than ever seen before. At the same time, television compa-
nies, sports clubs, governing bodies and even the sports stars themselves, are em- bracing social media to engage with fans and deliver to them a greater intensity of loyalty experience.
THE SPORTS INDUSTRY BY MARKET SEGMENTS Gate Revenues: Gate revenues will remain the biggest component of the global sports market. These account for 32.6 per cent of the total revenue (US$44.7 bn, £28.6bn, 33.6bn) in 2015. They’re particularly a key source of in- come in the regions where live sports events are part of the local culture. However, this mature market will see the lowest growth across all segments of the sports market at just 2.5 per cent CAGR from 2011-2015. In EMEA, PwC expects modest growth,
averaging less than 2 per cent, com- pounded annually during the next two years, with only slightly higher increases of just over 3 per cent annually for on- going events during 2013–15. The gate revenue market is effectively saturated
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for the top events and record attendanc- es have been witnessed at major events this year in the UK. One unlikely area which could stimu-
late growth is regulation. In European football, The Union of European Football Associations (UEFA) financial fair play rules are forcing clubs to boost their reve- nues and are providing an extra impetus for new stadia development. Changing the format of sporting
events is also something which has been tried to make events more exciting and appealing to new audiences. For ex- ample, the England Hockey Board has recently announced the launch of Rush Hockey – an indoor or outdoor four- or five-a-side format. Sponsorship: Accounting for 28.8 per cent of the total sports markets, sponsor- ship will see an average growth rate of 5.3 per cent to 2015. This will generate global revenues of US$45.3bn (£29bn, 34.1bn), which is split evenly across all regions. The structure of sponsorship deals has changed. It’s no longer just about brand
Gate revenues will remain the biggest component of the global sports market
visibility and awareness, now it’s about gaining a deeper and more emotional engagement with fans and staff – some- thing which some of the newly launched digital technologies are enabling. Advertisers and sponsors are inte-
grating social media into their sports involvement and through this and smart data mining, they are able to target their messages and content so that it’s relevant to each consumer segment and appropriate for each platform and delivery device. Media Rights: Media rights is the third largest category of revenue and accounts for 24.1 per cent of the total market. It is the second fastest growing sector at 3.8 per cent CAGR. Revenues will see fairly healthy growth from US$29.2bn (£18.7bn, 21.9bn) in 2010 to US$35.2bn (£22.5bn, 26.5bn) in 2015. However, these figures mask large year-on-year swings, which reflect the traditionally dramatic impact of major global events held in ‘even’ years, such as the Olympics and FIFA World Cups.
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