Sports market in the United States - additional information
Today’s sports market size is experiencing strong growth, having developed into a full-blown worldwide industry in the past decades, with unprecedented levels of revenue and more industry players than ever. By 2017, the global sport market is forecast to generate over 90 billion U.S. dollars, a two-fold increase compared to the 2005 figures. The market is divided into four main segments: gate receipts (ticket sales for live sporting events), sponsorship, media rights and merchandising.
With more than 71.6 billion U.S. dollars in revenue forecast for 2018, the North American sports market is one of the largest in the world. On the global level and in the U.S. as well, gate receipts represent the largest revenue segment in the sports market. For 2018, some 19.7 billion U.S. dollars in revenue are expected to be generated through ticket sales alone in North America. The second largest revenue stream in the US sports market is the media rights market, where revenue is generated from fees paid by radio, television or internet broadcasters to distribute sporting events. Due to the wide availability of media devices, this sector has increased tremendously in size in the past ten years, from 8.5 billion U.S. dollars in revenue in 2006 to a forecasted 19.87 billion U.S. dollars in 2018.
The sponsorship sector, which includes revenues generated by payments from companies to have their products associated with an event, a team or a league, has also been expanding in the past years. In 2015, an estimated 15.3 billion U.S. dollars of revenues were generated through this channel, with projections as high as 17.54 billion by 2018. The merchandising sector, which includes everything from team jerseys to branded sports equipment, has registered slow but steady growth, with projected revenues reaching over 14.5 billion U.S. dollars in 2019.