There is incredible diversity in sports industry that encompasses almost every activity that you can think of from:
- Ticketing and;
- TV distribution
How Sports are Generating Profits?
Several researches have been made and released about sports and analyzing the industry’s growth since 2014 to present. For the research, the industry is broken down to 2 major sectors as per the level of engagement it makes which are:
- Participatory – this includes recreation and fitness centers, sporting facilities similar to marinas, local golf clubs, personal training, community sports and so forth.
- Spectator – for this, it consists of event revenue, sponsorship, merchandising, media rights and sports teams
Either Way, it’s Revenue at the End of the Day
In the participatory sector, it actually takes the largest share in sports market at around 56 percent. Out of the different businesses operating within this sector, recreation and fitness centers are dominating the scene.
In regards to spectator sports sector, it’s forecasted to be among the fastest growing sector between the two at 5.9% per year. The profits generated by media rights had the biggest contribution at 23.7 percent while merchandising is predicted to grow at a rate of 7% annually. Regardless, sports is a huge industry and raking in big money.