US Sports Industry

U.S. Sports Industry

 

 

Sports Industry To Reach $73.5 Billion By 2019 Continued

 

 

The battle between stadiums and television screens for the spectator's attention continues to be a relevant topic considering PwC's projection that media rights will surpass gate revenues in the near future. Stadiums are attempting to bring in new technology, features and seating styles in an effort to win back the fan that may increasingly choose to stay home instead of attend a game in-person. The Miami Dolphins is one franchise that recently dedicated money to renovate its stadium with new seating in the form of "living rooms," upgraded suites and enhanced concessions.

While revenues derived from media rights should eclipse those generated from ticket sales and game attendance, gate revenues are still forecast to increase from $17.7 billion in 2014 to a projected $18.3 billion in 2015 and $20.1 billion by 2019.  In addition to enhancing in-stadium features, teams will need to better learn how to use dynamic price changing models along with more creative promotions in order to achieve further growth.

 

The categories of sponsorship and licensed merchandise are also expected to grow, with sponsorship having the most room for improvement.

Sponsorship money is anticipated to improve by 4.5% from longer term deals, higher renewal rates and enhanced inventory yields. That would cause sponsorship revenue to go from approximately $14.7 billion in 2014 to $15.3 billion in 2015 and $18.3 billion by 2019. There may also be a spike due to the creation of new facility naming rights deals -- 40% of major North American professional sports teams either do not have a naming rights deal in place (i.e. Marlins Park) or have deals that will expire within the next 5 years. Additional sponsorship inventory created by way of digital media rights, uniform rights and further in-venue signage opportunities could also add to the bottom line in the sponsorship space.

Merchandise should see a small boost in returns from an expansion in the female retail market, technology-driven retail enhancements and potential improvement in economic conditions throughout North America. PwC anticipates that licensed merchandise sales will go from an estimated $13.5 billion in 2014 to $14.5 billion in 2019.

Contact

Wilfred H. Muskens | Founder & Chairman

Emilie R. Seventko | Executive Director

New Orange Sports Forum (NOSF), USA

Lancaster, PA 17601 | USA

Mobile: (+1)717-666-9899

Office USA: (+1)717-715-1595

Office Netherlands: (+31)30-320-0880

wilfred@neworangesportsforum.com

emilie@neworangesportsforum.com

 

Copyright @ All Rights Reserved