RESEARCH
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4 Media rights 4 Merchandising 4 Appendix 4 Glossary 4 Contacts
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Broadcasting still generates the majority of income from media rights
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Broadcasting still generates the ma- e of 3.7% from 14 2015
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jority of income from media rights, but engagement through different media platforms such as the internet and mo- bile phones can enhance and expand the fan’s experience. Smart use of social networking can add further value for both themselves and the user and many TV companies have invested in interactive portals. This enables them to combine online TV screening with social media, which complements their offering to the market. Merchandising: Merchandising remains the smallest category of revenue – ac- counting 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 rev- enue is closely linked with consumer spending patterns and overall growth
CAGR 2011-15
3.7
Global revenue growth by region 2011-2015 Global revenue growth by region 2011-2015
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
4.9% 4.0% 2.9% 3.9%
“Sponsors will demand sophisticated measurement to demonstrate the returns on their investment”
is similar to gate revenues at 2.6 per cent CAGR, generating revenues of US$20.1bn (£12.9bn, 15.1bn) in 2015, up from US$17.6bn (£11.3bn, 13.2bn) in 2010. Sports clubs are seeing a larger propor-
tion of their merchandise transactions moving online, which allows them to engage and interact with fans who can’t attend matches – including those liv- ing in other countries. This engagement helps to promote sports brands in those regions and markets and builds demand for media coverage of the clubs involved.
North America EMEA Asia Pacif ic CAGR 2011 - 2015 Latin America
LOOKING FORWARD With reference to what the future might hold for the sports market in a world of increasing economic and political uncer- tainty, PwC predicts the following: • 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 do- mestic and international sports events. • Sponsors are likely to demand more sophisticated measurement
34 Read Sports Management online
sportsmanagement.co.uk/digital 11
Outlook for the global sports market
techniques in order 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. • Sports bodies must balance the in- creased 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 significantly contribut- ing to the globalisation of both the industry and specific sports. ●
Julie Clark is head of PwC’s UK sports practice. Email Julie for further information:
julie.d.clark@
uk.pwc.com
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