Home run: Additional corporate sponsorships and broadcasting contracts will boost industry revenue

Team owners are responsible for generating revenue through ticket sales, media deals and endorsements, while also maintaining the team's facilities and building a winning team. However, winning is not everything, as generating robust and diversified streams of revenue to keep the business growing is crucial for success. The industry has experienced impressive growth over the past five years. Personal disposable income levels have steadily grown, creating a significant increase in discretionary spending and attendance at sporting events. At the same time, average ticket prices have gradually increased, while attendance figures have not shown any indication of slowing down...read more.

Industry Statistics & Market Size
Revenue
$30bn
Annual Growth 12-17
4.4%
Forecast Growth 17-22
Profit
Employment
72,744
Businesses
1,044
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • With greater attendance and sponsorships, revenue is forecast to grow
  • Industry operators gain a substantial amount of revenue from contracts with TV networks
  • Investment in stadiums and arenas has been, and will continue to be, a major industry trend
  • Industry Report - Industry Products Chapter

    Four major sports associations operate in the United States, and they account for the vast majority of industry revenue. These leagues represent the four most popular spectator sports in the country: The National Football League (NFL), Major League Baseball (MLB), the National Basketball Association (NBA) and the National Hockey League (NHL).Football is the most popular spectator sport in the United States. The NFL comprises 32 franchises, which host eight games per season in their home stadium and play the remaining eight games as visitors. Following regular season play, 12 teams make the playoffs, and at the end of the playoffs the two remaining teams play in the Super Bowl at a neutral site. Bas...purchase to read more.

    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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    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
  • 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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
  • Licensing of rights to use property
  • Chart: Sports Franchises Industry Products and Services Segmentation

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Labor, rent and depreciation
  • Purchases, 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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Sports Franchises Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Time spent on leisure and sports (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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’s industry research report on Sports Franchises provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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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