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Forbes: Thanks To Media, Sports Industry Growth Set To Accelerate

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11-18-2013, 08:20 PM
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Forbes: Thanks To Media, Sports Industry Growth Set To Accelerate


In its annual industry outlook, PwC projects 4.8% annual growth over the next five years, from $53.6 billion in 2012 to $67.7 billion in 2017 (projected trends are driven by major North American professional leagues, including Major League Soccer, along with top-level intercollegiate sports). The projection is a healthy increase from the sports industry’s 3% annual growth rate of the previous five years, a run that began shortly before the economic fallout of 2008.

Gate revenue will remain the largest single segment at $19.1 billion, though annual growth will be a relatively modest 3.9%.
Sports industry overall is 35% reliant on the gate.

Where the big growth will come from over the next five years: media rights, that safe haven for advertisers where fees have already exploded in recent years, particularly for Major League Baseball and the NFL. As the last bastion of programming that’s mostly safe from commercial-zapping DVRs, live sports still has room for growth through more regional networks.

“More content will come online,” says Jones, with ratings that could be enhanced by division and conference realignment in pro and college sports that figure to create more compelling matchups. PwC predicts that media rights fees will grow 7.7% a year through 2017, to just over $17 billion.
Maybe a 10 yr media deal isn't the greatest move unless you built in growth metrics.

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