The global sports market is predicted to grow by 7.4%, with diverse revenues replacing broadcasting rights.

The global sports economy is entering a new phase, where its growth will increasingly rely on diversifying revenue streams, attracting new investments, enhancing fan experiences, and developing emerging markets, according to the specialized sports economics platform.

A recent survey by PricewaterhouseCoopers (PwC) – the ninth of its kind – gathered insights from 517 senior sports executives across 48 countries and 7,250 fans in 17 markets. The results indicate that sports executives anticipate the global sports market to grow at an average annual rate of 7.4% over the next three to five years. Additionally, the value of sports clubs and franchises is projected to increase by approximately 7.9% annually.

Reducing reliance on broadcasting rights

A key finding of the report is the shifting composition of growth drivers within the sports industry. PwC forecasts that media rights growth will slow down compared to previous years, while commercial and sponsorship revenues, ticket sales, hosting events, fan merchandise, and betting-related rights will become more significant contributors to future growth.

The study estimates annual growth rates as follows: commercial and sponsorship revenues at 6.5%, tickets and hosting at 6.2%, fan merchandise at 6.2%, and betting-related rights at 7.7%.

Investors seek multiple income sources

The PwC report reveals that four out of five investors favor assets capable of generating multiple revenue streams.

This trend could also transform the economic model of sports clubs. From an investor's perspective, a club solely dependent on broadcasting rights differs significantly from one that generates income through sponsorship, merchandise sales, tickets, entertainment, data, media, and digital content simultaneously.

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