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Professional Sports Teams & Organizations

10 Pages First Research, Inc. May 18, 2015 SKU: FRRS5560015

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, Dallas Cowboys, Los Angeles Dodgers, and New England Patriots, all based in the US; as well as Real Madrid and Barcelona (Spain); Manchester United (UK); and Bayern Munich (Germany).

Globally, sports generate about $80 billion in annual revenue, according to A.T. Kearney. 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, industry revenue is projected to grow at a compound annual rate of 5% through 2017 (from 2013).

The US professional sports teams industry includes about 800 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.

COMPETITIVE LANDSCAPE

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...

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Professional Sports Teams & Organizations

First Research, Inc.
May 18, 2015

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