Private Equity
Andrea Alms Video: Money In Motion 117 - Sports Industry Market Report
August 2024 - Private Equity
TRANSCRIPT Hello, my name is Andrea Alms. I'm a technology investor and financial manager and this is your money in motion. With the Summer Olympic Games. I was asked about the sports industry market. The sports industry is a powerful economic force contributing significantly to the global economy. It's influenced is under undeniable, with a demographic encompassing almost every type of individual worldwide.
The sports market made $487 Billion in 2022, with three of the world's biggest football clubs FC Barcelona, FC Bayern Munich and Real Madrid contributing the most to the market. According to Grand View, the global sports market grew from 486.61 billion in 2022 to 512.14 billion in 2023, at a compound average growth rate of 5.2%, the sports market is expected to grow to 623.63 billion in 2027, at a compound average growth rate of 5%.
How much revenue does the sports and industry generate? The sports market is a vast and diverse market. Different segments contribute to the industry's total revenue. By type, spectator sports and participatory sports by revenue source. Meteorites, merchandizing tickets and sponsorship among the markets. But this very sports contribute the most to the market. Those sports include golf, bowling and skiing.
The market reached 326.8 billion in 2023, at a 4.63% increase compared to 2022. The global sports market suffered greatly, with a 15.37% decrease in its market size in 2020. Current time. However, in 2021, the market share bounced back and significantly increased by 13.39%. Even with the unending Russia Ukraine war since 2022, the industry has thrived and keeps growing.
The market has grown by almost 32% in the three years since the pandemic. With increasing popularity and demand, the sports market's revenue will continuously grow at a combat average growth rate of 5.2%. Its market revenue will reach 623.6 3,000,000,000 in 2027. The Olympics have benefit from the digital age. The 2020 Tokyo Summer Olympics accumulate 3 billion unique viewers across television and digital platform for the 17 day event.
The total revenue generated was worth $7.6 billion. Broadcasting rights are a main driver, accounting for 61%. Next, the marketing rights take over 30% of the revenue. Women's sports will generate 1.3 billion for the first time in 2024, according to Deloitte and Parity. Undeniably, men's sports dominate the sports industry. It overshadows women's sports, which have only received 4% of total media coverage.
However, in 2023, the media coverage grew to 15%. Commercial deals are the main driver of the industry, followed by broadcasting rights. The exposure paves the way for the industry, resulting in a fan and investor engagement surge. In 2024, the industry will have a 32.52% increase compared to the previous year. Women's professional sports revenue will reach $1 billion threshold for the first time.
The three main drivers for this growth are as follows. Commercial revenue at 696 million. Broadcast revenue at 340 million and game day $240 million. Enjoy the games. Thank you. This is your money. Your Money in Motion.