Sports Teams and Clubs NAICS 711211

Jul 7, 2025 - WNBA Continues Expansion in US

• The WNBA announced three new expansion teams in Cleveland, Detroit, and Philadelphia in next few years, bringing the league’s total to 18 by 2030, according to CNN. The new women’s professional basketball team in Cleveland will begin play in 2028, Detroit in 2029, and Philadelphia in 2030. The league said the new cities were chosen based on several factors including an analysis of market viability, committed long-term ownership groups, and potential for significant fan, media, corporate, and regional support. The WNBA also announced expansion teams in Portland and Toronto in 2024, with both expected to begin playing in 2026. According to a statement from WNBA Commissioner Cathy Engelbert, “This historic expansion is a powerful reflection of our league’s extraordinary momentum, the depth of talent across the game, and the surging demand for investment in women’s professional basketball.”
• 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.

• Consumer sentiment, an indicator of discretionary spending, was mixed in June 2025, according to two major indicators. The final index of consumer sentiment from the University of Michigan grew 15.9% in June 2025 from the previous month, as the Trump administration put some tariffs on hold against major US trade partners, according to CFO Dive. Year over year, the index of consumer sentiment was down 11.3%. An index measuring consumers’ expectations for the future was up 21.9% from the previous month, but was down 16.1% year over year. According to survey director Joanne Hsu, “Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed.” Hsu noted that consumers’ views of business conditions, personal finances, buying conditions for big ticket items, labor markets and stock markets all remain below six months ago. However, the Consumer Confidence Index fell by 12.3 points in June 2025, compared to the previous month. The index dropped in June following a gain in May, according to The Conference Board, which publishes the monthly index.
• 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.