Sports Teams and Clubs NAICS 711211

May 8, 2025 - Faster Growth Forecast

• Sales for the US sports teams and clubs industry are projected to grow at a CAGR of 5.76% between 2025 and 2029, faster than the overall economy's projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Spending by US households and tourists, foreign students, and other visitors largely drives the arts, entertainment, and recreation industries. According to the forecast, real spending for spectator sports has experienced a strong recovery since the pandemic, with real spending in Q3 2024 up 44.5%. Consumer confidence is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods. Lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if average prices rise due to tariff implementation.
• According to a report in CFO Dive, consumer sentiment, an indicator of discretionary spending, fell in large part due to tariff uncertainty and an expectation of higher prices. The final index of consumer sentiment from the University of Michigan dropped 8% in April 2025 from the previous month. An index measuring consumers’ expectations for the future fell nearly a third since January, the steepest three-month percentage decline since the 1990 recession. According to survey director Joanne Hsu, “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.”

• A recent analysis by Sportico examines how the Trump Administration’s tariff plans may affect sports-related businesses in the US, including potentially weaker consumer spending, fluctuating strength of the US dollar, and higher costs on imported goods. According to the analysis, the sports industry may not be able to insulate itself from broader inflation likely to be caused by tariffs, which worries some executives. Consumers may reduce discretionary spending if they feel pressured by overall cost increases. A weaker dollar can hurt businesses that buy goods in foreign currencies. National Hockey League (NHL) clubs based in Canada may be affected as the Canadian dollar is weakening against the US dollar due to the expected economic impact of US tariffs. Some sports executives said they may find tariffs hitting them in unexpected areas, such as the price of soda and hot dogs at games, as concessions suppliers expect to be impacted.
• Professional sports leagues are incorporating more automated officiating systems with AI capabilities into their games to improve accuracy and reduce the number of controversial calls. This spring, Major League Baseball debuted its Automated Ball-Strike (ABS) system in games, according to Sportico. Teams can challenge a home plate umpire’s call twice per game to use the ABS to review any ball or strike call. The system is in use at 13 ballparks for spring training games. The earliest the system would be incorporated into regular season games would be 2026. Meanwhile, the National Basketball Association (NBA) is hiring a team of people to oversee the automated officiating capabilities at games, according to USA Today. In the past season, the NBA partnered with Sony’s Hawk-Eye system to assist with out-of-bounds and goaltending calls. The National Football League plans to use Hawk-Eye for its “line to gain” technology in preseason games for a second year to call first-downs in its upcoming preseason games, according to NBC News. The technology is expected to cut down on controversial decisions and speed up the time to make the calls since workers will not need to move the chains for measurement.