The Finance World Magazine| Edition: September 2023

In 2023, sports and business converge, reshaping
the game with individual athlete focus, ethical
sponsorships, and AI-powered strategies.
A
notable shift in the sports
landscape is the increasing
spotlight on individual athletes.
While team achievements
have traditionally taken precedence,
the rise of superstar athletes like
Lionel Messi and Cristiano Ronaldo
has sparked debates about football’s
greatest players. Recognizing the impact
of individual brilliance on team
success and marketing potential, both
fans and athletes are now placing more
emphasis on the achievements and
quality of individual players. This trend
is reshaping how clubs approach player
acquisitions and marketing strategies.
As athletes become valuable assets,
teams are acknowledging the importance
of supporting their overall health and
wellbeing. The realization that stressed
and distracted athletes cannot perform
at their best has led to a new era of
athlete-centric policies. Clubs are now
providing crisis management platforms
and support systems to ensure athletes
can focus on their performance without
external distractions. Preston North
End’s pioneering move with the MA-
Change Crisis Management Platform
is an example of this evolving trend.
The sports industry is witnessing a
surge in mergers and acquisitions, driven
by the interest of foreign investors
in football and other sports. Overseas
financiers recognize the economic potential
of sports and are investing in clubs
worldwide. High-profile acquisitions,
such as Saudi Arabia’s Public Investment
Fund buying Newcastle United
and American consortiums acquiring
Chelsea F.C. and A.F.C. Bournemouth,
exemplify this trend. As sports organizations
demonstrate their financial
viability, the number of M&As is expected
to grow.
The changing dynamics of football
club ownership have shifted the focus
towards profitability and commercial
viability. With streaming platforms
becoming a significant medium for
sports consumption, clubs are keen
on appealing to global audiences to
maximize revenue. Traditionally, teams
catered to local fan bases, but globalization
has opened up opportunities
for international commercial success.
As clubs target fans worldwide, their
engagement strategies are evolving to
capture a wider audience.
Following the success of the NFL
and NBA’s international fixtures, other
sports, including football, are exploring
‘one off’ events to expand their global
reach. The idea of playing Premier
League games abroad has garnered
attention, despite some resistance from
local fans. Such events have proven
effective in attracting new fans and
increasing viewership, boosting the
appeal of major sports leagues on an
international scale.
Environmental, Social, and Governance
(ESG) concerns have become a
priority for businesses worldwide, and
sports organizations are no exception.
Positive corporate image and ethical
practices are increasingly valued,
impacting sponsorship decisions and
commercial success. English Premier
League teams, in particular, are facing
scrutiny over their associations with
betting sponsors. As clubs realize the
link between reputation and financial
success, expect greater emphasis on
ethical sponsorships in 2023.
Artificial Intelligence (AI) is set
to play a pivotal role in the sports
industry. Clubs and organizations
will leverage AI for various purposes,
including content creation, marketing
campaigns, and data analysis. The use
of AI in decision-making, such as player
transfers and sponsorship deals, will
become increasingly common as teams
prioritize data and scientific analysis
in their strategies.
As we venture into 2023, the sports
business landscape continues to evolve
rapidly, with emerging trends reshaping
the industry’s future. The growing focus
on individual athletes, heightened
importance of fan engagement, and
the rise of ethical sponsorships are
among the key shifts driving change.
Embracing technology, such as AI,
will further enhance clubs’ operations
and decision-making capabilities.
With sports organizations increasingly
resembling commercial entities, the
sports industry is primed for further
growth and financial strength.
September 2023 www.thefinanceworld.com 75