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 950 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 90 workers and generates about $34 million annually.
- The sports team industry consists of about 950 firms that employ about 83,000 workers and generate almost $33 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
Mar 5, 2024 - Consumer Confidence Dips
- Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
- According to a recent ConsumerSignals survey by Deloitte, more discretionary categories, including recreation and entertainment, leisure travel, restaurants, and electronics, represented an estimated 22% share of consumer’s wallets in January, up slightly from a year ago. Global total spending intentions remained consistent in January compared to December and were significantly higher than a year ago, according to Deloitte's Spending Intentions index. Spending intentions have gradually returned to their 2021 levels after inflation curbed global spending confidence. The survey also revealed that over 60% of survey respondents reported their finances had either remained the same or improved in the past year, up from 58% a year ago.
- The value of the Golden State Warriors increased 10% to reach over $8 billion in 2023, making it the most valuable franchise in the National Basketball Association (NBA), according to a Sportico study in SportsProMedia.com. The New York Knicks, the Los Angeles Lakers, the Boston Celtics, and the Chicago Bulls were other top-valued clubs in the league. In addition, the Warriors generated $764 million in revenue last season, nearly 40% higher than the next highest revenue-generating team, the Los Angeles Lakers. The collective value of every NBA team is reported to be $120 billion, and the average revenue per team was $362 million. The average value per club was $4 billion in 2023, an increase of 33% compared to last year.
- A new six-team women's pro hockey league debuted in January 2024 with a series of sold-out games, according to FrontOfficeSports.com. The Professional Women's Hockey League (PWHL) was created in 2023 through a merger of the former Premier Hockey Federation and the Professional Women's Hockey Players Association. The National Hockey League (NHL) is offering the league logistical and operational support but not financial support. The PWHL already has media deals with NESN, MSG Networks, and Bally Sports North in the US and media partners in Canada. The league's primary backer is Mark Walter, the lead owner of the Los Angeles Dodgers and an investor in other sports teams, including the Los Angeles Lakers. The PWHL teams are in Boston, Minnesota, New York, Montreal, Ottawa, and Toronto.
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