Sports Management Issue 1 2012 - Leisure Opportunities

RESEARCH
Outlook for the
Global Sports
Market to 2015
A
PricewaterhouseCoopers’ updated report on
the global sports market predicts that revenues
will grow to £93bn by 2015. Julie Clark reports
ccording to a new report by
PricewaterhouseCoopers
(PwC), which looks at the
global sports market towards
2015, global sports revenues will grow
to US$145.3bn (£93bn, 109.3bn) at an
annual compound growth rate (CAGR)
of 3.7 per cent. This is attributed to an
improved economy, a rebound in TV
advertising, the on-going migration of
sports to pay TV and the resurgence of
financial services and automobile companies
interest in sponsorship.
North America remains the largest
market throughout PwC’s forecasts to
2015, followed by Europe; the Middle
East and Africa (EMEA); and the Asian
market. Latin America will remain the
North America
is the largest
market for sport,
while Latin America
will remain the
smallest
smallest market. Growth in the sports
market in the BRIC countries (Brazil, Russia,
India and China) strongly outpaced
the overall global market during 2006 to
2010, but during the next five years this
gap will narrow.
SPORTING REGIONS
North America is still the largest market
and growth rates will significantly outpace
Asia Pacific and EMEA. While the balance
of power is shifting to some emerging
markets, which are hosting large-scale
sports events over the next few years, the
growth opportunities in the traditional
developed markets are far from over.
Latin America is projected to have the
highest growth rate at 4.9 per cent CAGR,
partly due to the FIFA World Cup in Brazil
in 2014, followed closely by North America
at 4 per cent CAGR.
The EMEA is the second largest region
with US$42.8bn (£27.4bn, 32.2bn) or 35
per cent of the total global revenues.
This region is projected to have the
slowest growth rate at 2.9 per cent. This
figure partly reflects the underlying economic
conditions and is a reflection of
the timing of major sports events, with
2010 being such a strong year in EMEA
– given the South Africa FIFA World Cup –
and 2015 being a relatively quiet year.
EMEA shows the most fluctuation over
the period, given the 2012 London Olympic
and Paralympic Games and the Football
European Championships in Poland and
Ukraine and then in 2014, the Winter
Olympics in Sochi and the Commonwealth
Games in Glasgow. If the impact of these
one-off events is excluded, the underlying
growth rate is 4.6 per cent.
What has been clear however, through
this era of economic uncertainty, is that
the balance of global economic power
is shifting to the East and this will help
maintain the internationalisation as sports
seek new revenues from the growing middle
classes in the emerging nations.
Global revenues split by region 2010
Latin America
5%
Asia Pacific
19%
North America
41%
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EMEA
35%
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