Overview

High score: Increased game attendance and lucrative media contracts will boost revenue growth

The Sports Franchises industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$29bn
Annual Growth
11-16
3.5%
Annual Growth
16-21
Profit
Employment
68,470
Business
1,008

Industry Threats & Opportunities

  • Franchises continue to open new stadiums and are installing state-of-the-art technology
  • Industry operators gain a substantial amount of revenue from contracts with TV networks
  • Franchises with old or out-of-date facilities are at a considerable disadvantage relative to other teams

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    Industry Analysis & Industry Trends

    The Sports Franchises industry has experienced impressive growth over the past five years. Personal disposable income levels have steadily recovered and average ticket prices have gradually increased, while attendance figures have not shown any indication of slowing down. Therefore, franchises have generated gradually higher levels of both revenue and profit. Additonally, franchises continue to open new stadiums and are installing state-of-the-art technolofy, attracting more consumers to sporting events. In the nexts five years, similar trends will benefit the industry. Furthermore, additional corporate sponsorships and broadcasting contracts will aid industry growth...

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    Industry Report - Industry Investment Chapter

    The industry exhibits a low level of capital intensity. For every dollar spent on wages, operators spend an estimated $0.05 on capital investments. While total capital costs for sports franchises are quite high due to the multitude of state-of-the-art arenas and stadiums, extremely high player salaries dilute this ratio. Few people can perform to the increasingly competitive standard of professional sports; as a result, talent is highly compensated, and players will often agree to sponsorship and endorsement deals in addition to wage payments. Moreover, high pay rates reflect the limited working years of most professional athletes. For instance, many NFL careers are shortened by injury and the cumulative effect of physical contact. Cap..

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    Additional Insights for the Sports Franchises Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sports Franchises Industry are

  • Close monitoring of competition
  • Must have license
  • Ability to raise revenue from additional sources
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and External competition for the Sports Franchises industry in the Sports Franchises industry impact industry performance..

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    Industry Products

    What is the Sports Franchises Industry?

    This industry comprises sports teams or clubs that participate in live professional or semiprofessional sporting events (e.g. baseball, basketball, football, hockey, soccer and other team sports) before a paying audience. The sports franchises included in this industry may or may not operate their own facilities for staging games or other spectator sports events.

    Industry Products
    Ticket sales
    Advertising
    Broadcasting and other media rights
    Licensing of rights to use property
    Concessions
    Merchandise sales
    Industry Activities
    Providing sporting entertainment
    Selling tickets to sporting events
    Selling advertising
    Selling media and broadcasting rights
    Selling concessions
    Selling merchandise
    Selling the rights to use property

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • External competition for the Sports Franchises industry
  • Households earning more than $100,000
  • Number of broadband connections
  • Time spent on leisure and sports

  • Current Performance
  • Ticket sales and revenue
  • Media frenzy
  • High wages for pro athletes
  • Chart: Revenue Growth

  • Industry Outlook
  • Ticket sales and revenue
  • Media frenzy
  • High wages for pro athletes
  • Table: Sports Franchises Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sports Franchises Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Radio Broadcasting
  • Television Broadcasting
  • Cable Networks
  • Coffee & Snack Shops
  • Fast Food Restaurants

  • Key Selling Industries
  • Advertising Agencies
  • Architects
  • Caterers
  • Charter Flights
  • Concert & Event Promotion
  • Sporting Goods Wholesaling

  • Products & Services
  • Advertising
  • Other
  • Ticket sales
  • Broadcasting and other media rights
  • Concessions
  • Merchandise sales
  • Licensing of rights to use property
  • Chart: Sports Franchises Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 19 to 34
  • Consumers aged 35 to 54
  • Consumers aged 55 and older
  • Consumers aged 18 and younger
  • Chart: Major Market Segmentation for the Sports Franchises Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitLabor, rent and depreciationPurchases, marketing and travel
  • Chart: Cost Structure Benchmarking – Sector vs Sports Franchises

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sports Franchises Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Sports Franchises Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Sports Franchises Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Time spent on leisure and sports (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Collective Bargaining Agreement (Cba)
  • A negotiated document explicitly stating the complete range of relationships between management and their athlete employees; it covers discipline, base salaries, medical rights and more.
  • Luxury Tax
  • A tax enforced on leagues without salary caps but that have payrolls above a predetermined level.
  • Revenue-Sharing
  • A money-sharing agreement where franchises are required to pool a specified portion of their media revenue to be distributed evenly among all teams.
  • Salary Cap
  • A ceiling amount for a team's athlete payroll imposed by the professional sports league to preserve a level playing field.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Sports Franchises:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sports Franchises market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sports Franchises, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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