Not only does the sports industry offer us great drama and epic spectacle, a way to get fit and a means of achieving personal and shared glory, but it also forms one of the most important pillars of the global economy.
In 2011, money spent on spectator sports in the US accounted for 0.25% of the nation’s average personal consumption expenditure. That’s five dollars in every two hundred. It’s a relatively small share, but when you take into account all the myriad expenses associated with modern living, it becomes apparent that this is in fact a truly significant share. The sports industry is clearly big business.
Watching the game
One of the key revenue streams exploited through spectator sport is the provision of the actual viewing experience itself. Ever rising stadium admission prices see spectators charged at the gate to watch the action in the flesh, whilst pay-per-view broadcasts of sporting events – notably including boxing – regularly see millions of dollars changing hands in the US alone.
The power of sponsorship
The cost of getting your company’s name on the shirt of a top class sports side is astronomical, but the rewards to be had in terms of increased revenue are even greater. Not only does sports sponsorship offer the chance to have your brand name made visible to millions of people around the world, it also associates a brand with the prestige of a high class sports team – a winning one with a bit of luck. Everyone from paint manufacturers to breweries and even USA Gambling providers gain some of their most important exposure through sponsoring athletes and sports teams.
The magic of merchandising
Consumers around the world are utterly addicted to merchandise. Sometimes it’s a requirement of their own amateur sporting endeavours – whether that’s in the shape of lacrosse sticks or running shorts – and whatever gear we use, we want it to be associated with one of our favourite brands. This almost tribal preference for the brands of the sports teams, personalities and manufacturers we like the most means we’re always likely to buy just about anything that bears their name, from tennis racquets to toothbrushes, stationary to sweatshirts. For every major sporting achievement that’s accomplished, there will inevitably be millions of dollars worth of branded stuff being sold around the world! Sports stars are incredibly well paid as a result of this domino effect. They may make a lot of money, but their achievements are invariably making somebody else a whole lot more!
Everyone from paint manufacturers to breweries and even USA Gambling providers gain some of their most important exposure through sponsoring athletes and sports team
