Global sports market on rise during economic crisis
ISTANBUL-Anatolia News Agency
Messi of Barcelona, one of the world’s richest football clubs, celebrates after a goal. Reuters photoThe global sports market will register total revenue of $145.3 billion by 2015 with the help of the rising popularity of many major sports events despite ongoing challenging economic conditions, according to a report released yesterday.
The improving economy, growing advertisement revenues, broadcasting of sports events on pay television and financial services and automotive firms’ sponsorship spending will help drive the compound annual growth rate of 3.7 percent from 2011 through 2015, the report by consulting firm PricewaterhouseCoopers said.
The compound annual growth rate in the Latin American sport market is estimated to be 4.9 percent with the help of the 2014 FIFA World Cup in Brazil, according to the report.
The figure is expected to be 4 percent in North America.
“The growth will be realized in the developing sports markets of BRIC countries [Brazil, Russia, India, China] and the Middle East, which will allow new trade opportunities to develop both in domestic and international sports events,” the report said.
Europe, the Middle East and Africa will register only a 2.9 percent compound annual growth rate in the sports market due to adverse economic conditions, the report said.
Sources of revenue
Gate revenue in the sector is projected to reach $44.7 billion and the volume created by sponsorships will witness an average growth rate of 5.3 percent, hitting $45.3 billion by 2015, the report said, adding that sponsors will require more comprehensive measuring techniques to quantify the returns on their investments.
The total revenue from media rights is forecasted to increase to $35.2 billion from $29.2 billion in 2010.
The report also said different media platforms, such as the Internet and mobile phones, may contribute to revenue growth more. Many television companies have invested in social networks on the Internet as it may create value both for the users and firms.
Merchandise revenue constitutes the smallest part of the total revenues. However, it is expected to grow to $20 billion by 2015 from $17.6 billion in 2010.