Professional Sports Teams & Organizations

First Research, Inc.
February 9, 2015
10 Pages - SKU: FRRS5465804
Professional Sports Teams & Organizations

Brief Excerpt from Industry Overview Chapter:

Organizations in this industry include professional and semiprofessional sports teams and clubs. Major organizations include the New York Yankees (US), Arsenal (UK), the Calgary Flames (Canada), Manchester United (UK), and Real Madrid (Spain).

Globally, professional sports generate about $120 billion in annual revenue. Football (known as soccer in the US) is the dominant sport around the world; other popular sports include rugby, cricket, and baseball. Given the intense global interest in sports, the industry could grow at a compound annual rate of 3.7 percent through 2015 (from 2011), according to PricewaterhouseCoopers.

The US professional sports teams industry includes about 750 companies with combined annual revenue of about $23 billion.

Professional sports teams generally operate as part of a league or professional sports association that sets rules, regulates franchise ownership, and negotiates league-wide broadcasting and marketing relationships. The professional sports teams industry does not include individual sports such as golf, tennis, and boxing.


Demand is driven by consumer income and corporate entertainment spending. The profitability of individual teams depends on achieving high fan attendance and a large TV audience, both of which are enhanced by effective marketing and competitive play. Teams in large metropolitan areas have advantages in the population base and TV audience they can draw on, though they may face competition from other teams. Teams in smaller markets, along with less popular sports and minor league teams, can compete by building fan loyalty through local marketing promotions...



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