Sports, Economy & Globalization | Sports in Major Augmentation in Country’s Recognition & Economy.

0 Comments

Sports is not a mere "play or passion", it has become a huge titanic industry of turn over of £20bn-a-year. Today, business and sports both are in hand to achieve huge figure in sports but, in past years, it was not always this popular, sports has faced some harsh consequences such as football was beset by crowd trouble, old stadiums and a lack of external funding. The Olympic Games had suffered serious boycotts, in 1980 and 1984, and potential bidding cities were deterred by the vast losses and legacy issues of previous hosts.

Fast-forward, the sports industry has a huge market in extensive fields such as sports tourism, sales and trade of sport products, medical treatment and rehabilitation, research and development,  construction and maintenance of sports venues, organization sports events, and marketing and advertising. Additionally, it has far reaching implications on the global economy due to its close association with other sectors including education, real estate and tourism.

Value of the Sports Industry both Economic & Socially Globally:

Proliferation in the sports industry is majorly from emerging market growth and rapid urbanization. Going forward, increasing sports sponsorships, economic growth, an increase in the number of Internet accessible devices and the emergence of multiple sports channels to capture viewership will drive growth.

For instance, the Sports industry is the 2nd fastest growing sector for brands, outpacing the GDP growth of most countries.

Sports market intelligence company, Spotcal, located in the United Kingdom, noted that in 2015 there were 83 world championships and multisport games hosted in 119 cities and 38 countries. These events accumulated over 13 million spectators and generated a potential net impact of $400 million before a single ticket was sold, and an overseas tourism impact worth well in excess of $2 billion.

Various major leagues and sports teams make up successful businesses around the world. For example, the National Football League (NFL) is the most successful American sports league in history while the English Premier League (EPL) is leading the European market. Bloomberg evaluated that the NFL earned nearly $15 billion in 2018. And Statista revealed that more than 50% of the league’s revenue came from TV deals. Deloitte Sports Business Group found that the EPL revenue amounted to $6.1 billion for the 2017/2018 season, which is up 6% from its previous year.

The sports market is projected to grow in across four segments like gate revenues, media rights, sponsorship, and merchandising and the estimated revenue collected in 2013 & 2018 was $56.9 billion to $70.7 billion. Media rights and sponsorships are among the main drivers for revenues with sponsorships and media rights each accounted for 35% of sports event revenues in 2013, and ticketing accounted for 27%.

North America was the largest market for the sports industry, accounting for 30.5% of the global market with 35.8 billion followed by American football, baseball, hockey, basketball, stock car racing and college sports.

Cutting-edge tech moves sport into the digital age:

Sports being always the epicenter of the world whether it’s for enhancements for cultural value or competitiveness among nations, but as technology is coming into the spotlight, the traditional methodologies of evaluating the games are altering with the changing advancements.

Sports & Technology | Horizons of Distinctive Sports has widened by Modulating Sports with Technological Advancements

Sports Sponsorship is Extensive Business:

Sport Sponsorship is an eminent and impactful marketing technique above all the other sports strategies. It is the association between a company (sponsor) and a sports club or event (sponsee).

According to Crimson Hexagon, it is evaluated that the global sponsorship spending for 2016 exceeded $60 billion, and in North America, 70% of that sponsorship money was spent on sports alone.

For instance, the case of Red Bull, a huge sports sponsor in 2006, Red Bull bought the Metrostars, a Major League soccer team, and dubbed it “The New York Red Bulls”. Soccer in the U.S. was a sport that lacked the extensive following of the NFL, MLB, and NHL, but has now been gaining massive popularity among the 18 to 29-year-old demographic- a key target audience for Red Bull. In fact, Red Bull utilization was 63% higher among soccer viewers than other energy drinks.

Sports Sponsorship provides an opportunity to drive sales and make a lasting impression and gives brands the chance to engage new content with a connected consumer through traditional routes or non-traditional areas such as social media.

Sporting events Imprints the lasting legacy:

After the London 2012 Olympic and Paralympic Games, the UK has seen the skyrocketed increase in trade and industry with £14.2bn in the two years, beating the four-year target of £11bn in less than half the time.  

British success at Olympic Games has helped make cycling the third most popular sport in England. More than two million adults ride at least once a week, according to Sport England.A number of companies have sprung up in and around cycling, which is now thought to contribute about £3bn to the overall economy and employ more than 23,000 people in the UK.

Live sport means a hike in brand exposure:

The behemoth sporting games would attract extreme popularity and gain massive worldwide attention which is almost due to competition, nation's patriotism & sports players admiration. With the competition excited among citizens, the huge fanbase escalates for the specific sports player, or supporting the specific team. According to Brandwatch, Premier League games have 4.7 billion viewers and 212 territories of coverage around the world.

Sport has the future to influence a wide range of people. In recent times, the amalgamation of global media coverage, huge sponsorship deals and more athletes training full-time means that some elite sports are a very lucrative business

Social media and Sports are compatible:

In the era of social media, brands have more platforms from which to generate new revenue opportunities

It’s estimated that of Facebook’s 1.3 billion users, over 500 million are dedicated soccer fans.

Social media is becoming a popular face for streaming sports events in a few second clips. 80% of fans use social media during live sporting events, both at the stadiums and at home.  So not only are videos of the event appearing online after they happen, but social media users post about the sporting event in real time. Therefore, social media plays a paramount role in advertising and brand recognition.

Nowadays, stadiums are fully connected with WiFi, HD screens, and teams and sponsors are now able to deepen their engagement with fans. Around 70% of people in stadiums use a smartphone, so the merge of smartphones, high-speed WiFi, and fans means more engagement for brands.

Media is reshaping the Sports Industry:

The majority of people, whether or not they play or watch sport, are aware of sports through digital media. This includes local, national, and international sport. From the school's sports newsletters to worldwide TV coverage, the media plays a powerful voice for and influence on the sport.

The media can have both positive and negative consequences on the sport. Consider the popular images from the Paralympic Games and how they alter the people's perception of people with disabilities in our society.

Sporting Event tourism:

Sports event tourism refers to the visitors who visit a sport's hosting city to watch events. The two events that captivated most tourists worldwide are the Olympics and the FIFA World Cup. These events are held once every four years, in a different city in the world.

The prodigious event for the National Football League is the Super Bowl, held at the end of the year in different cities every year.

As of 2015, the pairing of two events was held: the Maui Invitational held in Hawaii and the Battle for Atlantis which is played in the Bahamas. This idea of combining both sports events with the Bahamas attractions raised the island's profile and brought in more visitors and dollars to the country. The Battle for Atlantis attracted more than 5,000 fans in during Thanksgiving week for the three-day tournament. The event boosted the hotel capacity from what is typically around 60 percent this time of year to 90 percent.

Sports opportunities & requirements:

It's not just about the sports stadiums,athletes or investors, behind the game, there are people who are equally important in managing,executing and handling the sports  and making it all work for the professional athletes on the field, the court, or the ice.

The number of sports related jobs is much higher than the number of athletic positions in professional sports.

Various behind the stadium jobs such as engineers and developers, coaches and sport doctors, sport journalists and commentators, retailers of sports goods and equipment, etc.

Comments