Sport industry

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Sport industry is an industry in which people, activities, business, and organizations are involved in producing, facilitating, promoting, or organizing any activity, experience, or business enterprise focused on sports. It is the market in which the businesses or products offered to its buyers are sports related and may be goods, services, people, places, or ideas. [1]

Contents

Professional sports in the United States

The most major of industries related to sports are the professional leagues that most of the other industries in the sporting world revolve around. The major American sports leagues are the first five in the list following and include football, basketball, hockey, baseball and soccer. Most players in these leagues make money from the team they're on as well as sponsors but are among some of the top earners in the United States.

Examples

NameNet worth
NFL $74.8 billion [2]
NBA $49.5 billion [3]
NHL $18.4 billion [4]
MLB $49.4 billion [5]
MLS $4.3 billion [6]
Snowmobiling$39 billion in sales [7]
WWE
PGA
Outdoor recreation industry
Snowboard Industry
Angler Fishing
NASCAR

Sports apparel

Sports apparel includes a wide array of clothing articles from fan-based jerseys to actual equipment to play the different sports with. There are many retailers out there including online and in-person that offer a plethora of these products. Many of these businesses have professional athletes that endorse them, securing them fans and buyers alike.

Examples

NameNet worth
Under Armour $3.5 billion [8]
Reebok $1.2 billion [9]
Adidas $6.9 billion [10]
Nike $15.9 billion [11]
Oakley
K-Swiss

Sports gambling

Sports gambling is something that just recently became legalized in the United States. It involves making wagers based on some outcome of a contest or some aspect within the contest. In prior instances of legality, there were multiple incidents of professional athletes/referees committing scandals to increase payouts. The people placing the bets always have worse odds than those hosting the bets and that is how this industry remains profitable.

Sports Betting although PASPA (The Professional and Amateur Sports Protection Act of 1992 (Pub.L. 102–559) was overturned in May 2018, the individual states are still considering what methods (brick and mortar and online) of sports gambling to allow and where. For example, sports gambling, in certain US states and jurisdictions, may be allowed in established casinos or race tracks. Thus partnerships between bookmakers and gambling license holders will need to be in effect and active before taking any sports bets at venues.

Other considerations regarding legal sports betting remain clear: Offshore sportsbooks and bookmakers operating offshore cannot solicit or do business with American citizens. The 1961 Federal Wire Act - The Wire Act prohibits persons involved in the gambling business from transmitting several types of wagering-related communications over the wires. This basically means that online and telephone sports gambling is still not allowed in the United States. The memo issued by the DOJ in January 2019 can be downloaded here.

Companies offering free sports gambling games known as freemium or F2P games remain unregulated. Fantasy Sports considered by experts as skill games are questionable in certain US jurisdictions. 32 states have either allowed or regulated fantasy sports during the past few years, before the PASPA overturning.

Sports stadium/travel

Sports are often played in giant arenas that people travel to from all over. People will cross the world to see their favorite team play and some signature arenas can get fans there even if the team isn't having the best season. The construction/ adaption of these stadiums is a huge business in its own as they're often multi-purpose places used for other things like music events as well. The transportation of the players themselves is also a crucial business as keeping them safe and getting them to where they need to be on time can be a hassle.

Examples

Sports supplements/medicine

Athletes all over try to get an edge on the competition in any way possible. Over time companies have developed supplements that allows these athletes to train harder, stronger and longer. Combining these supplements with the right workout regime and diet can lead to better overall results for any athlete at any level of competition. While supplements are the former when it comes to sports training, sports medicine tends to be the latter. When an injury deals a great blow to an athlete they look to some of the world's best doctors who have a history of dealing with similar problems to help them overcome their damage.

Examples

Sports memorabilia

Sports memorabilia takes many forms from signed clothing to trading cards. Fans take much pride in owning something their favorite athlete once used or signed and there are a plethora of hole in the wall hobby shops that have items like these for sale. Many of these hobby shops also host meet and greets for fans to meet their favorite players.

Examples

Sports marketing

Sports marketing is being highly influenced by changes in technology stirred in with social media, according to a report entitled The Future of Sports, published by TheFuture.org. As sports clubs, franchises and professional athletes leverage on technology tied to social media networks and platforms to boost their marketing efforts and engage with fans the impact is felt in sports marketing economics. Digital mobile games, digital video contents, fan-created contents using league footage, fantasy sports games, and other sports-themed digital media is on the rise. Sports marketing in its digital format is almost presence everywhere in major sports brands from club to retailer. Compared to 1990, sports marketing has not only changed from static to digital but in terms of economic impact has seen exponential growth. The availability to use stats in almost real-time has also impacted sports marketing in the sports gambling industry. Bookmakers are now able to market using an occurrence from a few minutes or even seconds ago.

Sports Industry Statistics and Market Size Overview (US$)
YearEstimated Size of the Entire Sports Industry, U.S.Estimated Size of the Global Sports IndustryAnnual Company Spending for Sports Advertising, U.S.
2017519.9 Billion1.3 Trillion37.7 Billion

Examples

See also

Related Research Articles

A fantasy sport is a game, often played using the Internet, where participants assemble imaginary or virtual teams composed of proxies of real players of a professional sport. These teams compete based on the statistical performance of those players in actual games. This performance is converted into points that are compiled and totaled according to a roster selected by each fantasy team's manager. These point systems can be simple enough to be manually calculated by a "league commissioner" who coordinates and manages the overall league, or points can be compiled and calculated using computers tracking actual results of the professional sport. In fantasy sports, as in real sports team owners draft, trade, and cut (drop) players.

<span class="mw-page-title-main">Gambling</span> Wagering of money on a game of chance or event with an uncertain outcome

Gambling is the wagering of something of value on a random event with the intent of winning something else of value, where instances of strategy are discounted. Gambling thus requires three elements to be present: consideration, risk (chance), and a prize. The outcome of the wager is often immediate, such as a single roll of dice, a spin of a roulette wheel, or a horse crossing the finish line, but longer time frames are also common, allowing wagers on the outcome of a future sports contest or even an entire sports season.

Spread betting is any of various types of wagering on the outcome of an event where the pay-off is based on the accuracy of the wager, rather than a simple "win or lose" outcome, such as fixed-odds betting or parimutuel betting.

<span class="mw-page-title-main">Bookmaker</span> Organization or person that takes bets on sporting events

A bookmaker, bookie, or turf accountant is an organization or a person that accepts and pays out bets on sporting and other events at agreed-upon odds.

Sport Select is a group of sports betting games offered by Canada's lottery corporations. In Quebec, the program is known as Pari sportif; in Ontario and Atlantic Canada, it is known as Pro-Line while in British Columbia, it is known as Sports Action. However, the rules for the games are similar in all provinces. Initially created to offer betting primarily on the North American major professional sports leagues, Sport Select has expanded to offer betting on competitions such as the English Premier League and college sports.

<span class="mw-page-title-main">Sports betting</span> Form of gambling

Sports betting is the activity of predicting sports results and placing a wager on the outcome.

<span class="mw-page-title-main">Sportsbook</span> Sports gambling establishment

In the United States, a sportsbook or a race and sports book is a place where a gambler can wager on various sports competitions, including golf, football, basketball, baseball, ice hockey, soccer, horse racing, greyhound racing, boxing, and mixed martial arts. The method of betting varies with the sport and the type of game. In the US, the Professional and Amateur Sports Protection Act of 1992 allowed only Nevada, Oregon, Montana, and Delaware to legally wager on sports other than horse racing, greyhound racing, and jai alai; the law was ruled unconstitutional on May 14, 2018, freeing states to legalize sports betting at their discretion.

Online gambling is any kind of gambling conducted on the internet. This includes virtual poker, casinos, and sports betting. The first online gambling venue opened to the general public was ticketing for the Liechtenstein International Lottery in October 1994. Today, the market is worth around $40 billion globally each year, according to various estimates.

<span class="mw-page-title-main">888 Holdings</span> British online gambling company

888 Holdings plc, formerly Virtual Holdings Limited, is an international sports betting and gambling company. It owns brands such as 888casino, 888poker, 888sport, Mr Green, and William Hill. Business operations are conducted from its headquarters in Gibraltar, alongside satellite offices in Bucharest, Ceuta, Leeds, London, Malta, Sofia, and Tel Aviv. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

<span class="mw-page-title-main">Gambling in the United States</span>

In the United States, gambling is subject to a variety of legal restrictions. In 2008, gambling activities generated gross revenues of $92.27 billion in the United States.

<span class="mw-page-title-main">FanDuel TV</span> American horse racing company and TV network

FanDuel TV is an American sports betting-oriented digital cable and satellite television network owned by FanDuel Group, the U.S. subsidiary of Irish bookmaker Flutter Entertainment. It primarily airs live coverage of U.S. and international horse racing as well as studio shows focused on mainstream sports.

<span class="mw-page-title-main">Fixed odds betting terminal</span> Electronic slot machine

A fixed odds betting terminal is a type of electronic slot machine normally found in betting shops in the United Kingdom and introduced in 1999. The terminals allow players to bet on the outcome of various games and events which have fixed odds, with the theoretical percentage return to player (RTP) displayed on the machine by law. Like all casino games, the "house" has a built-in advantage. Typically, slot machine FOBTs have an RTP of 90% to 94% depending on the chosen stake, and standard roulette FOBTs have a long-term average RTP of 97%.

<span class="mw-page-title-main">Delaware Lottery</span>

The Delaware Lottery is run by the government of Delaware. Its creation was authorized by the state legislature on May 31, 1974. Its "traditional" games include Play 3, Play 4, Multi-Win Lotto, Lucky For Life, Lotto America, Mega Millions, and Powerball. Delaware also offers Keno, sports betting, and video lottery.

<span class="mw-page-title-main">Gambling in New Jersey</span>

Gambling in New Jersey includes casino gambling in Atlantic City, the New Jersey Lottery, horse racing, off-track betting, charity gambling, amusement games, and social gambling. New Jersey's gambling laws are among the least restrictive in the United States. In 2013, the state began to allow in-state online gambling. Five years later, the state won a lawsuit that dismantled Nevada's monopoly on legal sports betting.

Daily fantasy sports (DFS) are a subset of fantasy sport games. As with traditional fantasy sports games, players compete against others by building a team of professional athletes from a particular league or competition while remaining under a salary cap, and earn points based on the actual statistical performance of the players in real-world competitions. Daily fantasy sports are an accelerated variant of traditional fantasy sports that are conducted over short-term periods, such as a week or single day of competition, as opposed to those that are played across an entire season. Daily fantasy sports are typically structured in the form of paid competitions typically referred to as a "contest"; winners receive a share of a pre-determined pot funded by their entry fees. A portion of entry fee payments go to the provider as rake revenue.

FanDuel Group is an American gambling company that offers sportsbook, daily fantasy sports, horse racing, and online casino. The company operates sportsbooks in a number of states including New Jersey, Pennsylvania, Indiana and West Virginia, as well as an online horse race betting platform, and a daily fantasy sports service.

<span class="mw-page-title-main">Tom Waterhouse</span> Australian businessman (born 1982)

Thomas Robert Waterhouse is an Australian businessman, Chief Investment Officer of Waterhouse VC, Director of TomWaterhouse.com, co-founder of investment firm ListedReserve.com. He is the fourth generation of the Waterhouse racing dynasty and the grandson of one of the first official bookmakers in Australia.

<span class="mw-page-title-main">DraftKings</span> Daily fantasy sports content provider

DraftKings is an American daily fantasy sports contest and sports betting company. The company allows users to enter daily and weekly fantasy sports–related contests and win money based on individual player performances in five major American sports, Premier League and UEFA Champions League football, NASCAR auto racing, Canadian Football League, the XFL, mixed martial arts (MMA), Boxing, Tennis, All Elite Wrestling (AEW), and WWE.

Murphy v. National Collegiate Athletic Association, No. 16-476, 584 U.S. ___ (2018), was a United States Supreme Court case involving the Tenth Amendment to the United States Constitution. The issue was whether the U.S. federal government has the right to control state lawmaking. The State of New Jersey, represented here by Governor Philip D. Murphy, sought to have the Professional and Amateur Sports Protection Act (PASPA) overturned, allowing state-sponsored sports betting. The case, formerly titled Christie v. National Collegiate Athletic Association until Governor Chris Christie left office, was combined with NJ Thoroughbred Horsemen v. NCAA No. 16-477.

<span class="mw-page-title-main">Betting on horse racing</span>

Betting on horse racing or horse betting commonly occurs at many horse races. Modern horse betting started in Great Britain in the early 1600s during the reign of King James I. Gamblers can stake money on the final placement of the horses taking part in a race. Gambling on horses is, however, prohibited at some racetracks. For example, because of a law passed in 1951, betting is illegal in Springdale Race Course, home of the nationally renowned Toronto-Dominion Bank Carolina Cup and Colonial Cup Steeplechase in Camden, South Carolina.

References

  1. ↑ "West Virginia University".Link text.
  2. ↑ Communications, Forbes Corporate. "Forbes Releases 21st Annual NFL Team Valuations". Forbes.
  3. ↑ Badenhausen, Kurt. "NBA Team Values 2018: Every Club Now Worth At Least $1 Billion". Forbes. Retrieved 2018-12-10.
  4. ↑ "NHL Team Values 2017". Forbes. Retrieved 2018-12-10.
  5. ↑ Ozanian, Mike. "Baseball Team Values 2018". Forbes. Retrieved 2018-12-10.
  6. ↑ Communications, Forbes Corporate. "Forbes Releases 2016 MLS Team Valuations". Forbes. Retrieved 2018-12-10.
  7. ↑ "Snowmobiling statistics and facts, ISMA (International Snowmobile Manufacturers Association)-Information for snowmobilers: snowmobiling trails and safety; facts and trends". www.snowmobile.org.
  8. ↑ "5. Under Armour". Forbes.
  9. ↑ "6. Reebok". Forbes.
  10. ↑ "3. Adidas". Forbes.
  11. ↑ "1. Nike". Forbes.
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