Global sports market to rise

IN the middle of World Cup fever a survey has highlighted the resilience of global sports markets.

Research shows that sponsorship of global events is set to grow 4.6% annually, making it the fastest growing component of the global sports market. Over the next four years the world’s sports market is projected to show recovery with annual growth rate of 3.8% over the period.

Global gate revenues are set to expand by 3.2% over the next four years according to a new international survey carried out by PricewaterhouseCoopers.

The PwC report entitled “Back on Track – the Outlook for the global sports market” estimates that global sports spending will rise from €92bn in 2009 to €107bn in 2013, representing a compound annual growth rate of 3.8% over the four years.

The World Cup and the 2012 Olympic Games to be held in Britain are key drivers in solid earnings figures, according to the report.

Launching the report in Dublin, Minister for Tourism, Culture and Sport Mary Hanafin said: “This PwC report provides a useful insight and benchmark into the future trends for the business of sport.

“The report shows the jobs and opportunities that exist for sporting organisations and countries as they keep ahead of the trends.

“Ireland is playing a leadership role and is well placed to seize the opportunities as the world repositions itself for the upturn,” she said.

The report forecasts growth across all territories. The larger and more mature markets of north America will deliver 3.6% with Europe, the Middle East and Africa set to rise 4.1% with the smaller markets of Asia Pacific to grow 3.9%) while the Latin Americas are projected to deliver the strongest surge at 4.3% over the four years.

Julie Clark, head of sport at PwC, said: “Stripping out the effects of major one-off events, an underlying trend of steadily rising spending is emerging. Long-term contracts will to some degree insulate media rights from the downturn, and as a result media is the only category where spending for ongoing events increased in 2009.

“However, weak conditions in the advertising market have been limiting renewal increases since then,” she said.

Total gate revenues will expand from $43.2bn in 2009 to $49bn in 2013.

Growth in broadcast media rights revenues will be healthy seeing revenues rising from $23.1bn in 2009 to $26.7bn four years later, a 3.7% compound annual rate.