Sports Teams and Clubs
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,100 sports teams in the US participate in live sporting events before a paying audience. The industry includes professional and semi-professional teams but does include leagues. Major sources of revenue include admissions fees; broadcast and other media rights; advertising; events produced under contract; and meals, snacks, and beverages. Major sports include baseball, basketball, football, hockey, and soccer.
Dependence on Broadcast/Media Rights
Broadcast and media rights account for almost one-third of revenue.
High Labor Costs
The sports industry is labor-intensive; labor costs account for about 40% of sales.
Industry size & Structure
The average sports team employs about 75 workers and generates about $38 million annually.
- The sports team industry consists of about 1,100 firms that employ about 83,000 workers and generate almost $42 billion annually.
- The industry is concentrated; the top 50 companies account for over 60% of industry revenue.
- The most valuable NFL teams include the Dallas Cowboys, the New England Patriots, the Los Angeles Rams, and the New York Giants, according to Forbes. The most valuable MLB teams include the New York Yankees, the Los Angeles Dodgers, and the Boston Red Sox.
- Women’s teams may be part of the same sports leagues as men’s teams (like the WNBA and the NBA) or completely separate entities.
Industry Forecast
Sports Teams and Clubs Industry Growth
Recent Developments
Nov 11, 2024 - Services Sector Expansion
- Economic activity in the services sector expanded for the fourth consecutive month in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September. Fifteen of the 18 services industries reported an increase in prices paid during the month of October, including the Arts, Entertainment & Recreation; Retail Trade; and Wholesale Trade industries. Employment by sports teams and clubs grew by 8.7% in September 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees at spectator sports organizations climbed 10.9% in September 2024 year over year to $27.73 per hour.
- The NFL is planning to have eight international regular season games in 2025 after having five international games in the 2024 season, according to the Sports Business Journal. In 2024, the league held games in Sao Paulo, Brazil; Munich, Germany; and three games in London. NFL Commissioner Roger Goodell said next year’s international games could include trips to Spain, Mexico, Brazil, Germany, and Ireland. The league has said its goal is to have 16 international games each season.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- According to MarketWatch, admission prices to sporting events were significantly higher in September 2024 compared to a year ago. Admission prices for sporting events rose 10.3% in September 2024 compared to a year ago and were 10.9% higher compared to the previous month. According to Diane Swonk, chief economist at KPMG, “These tickets are becoming a luxury most can no longer afford.”
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