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Live sports events are a big piece of the moneymaking industry, but there are also other industries, and participants involved. There is not a single place that is left free from advertisement, broadcasters’ needs viewers who are potential buyers. If we get on counting every penny that is spent every year in the sports industry, its value is about 620 billion USD. Everyone is in for the money, and wants a big part of the profit made. Today our global sports industry is worth at least for 480 to 620 billion USD. These include the sporting goods, constructions, licensed products, and sports events. The sports industry today is growing faster than the GDP.
The sports events markets with tickets, marketing revenues and media for the major sports events. The total cost of this is about 64 billion USD; highest moneymaking event is soccer as it generates about 28 billion USD per year. On the other hand, Formula 1 racing, golf and tennis combined generate 32 billion USD yearly. If you only count Europe, and not the entire world, Europe has five major soccer leagues. These leagues, which cover half the market, and if you cover the top 20 team, it will be about one-quarter of the market. Adding it all up makes about roughly from 22 billion USD to more. The most popular sport in US no doubt, football, and it is growing more in the industry than golf and tennis. As, rugby joined the professional sport in 1995, it has grown well, and is still growing.
A recent study has found that, if you breakdown country by country, the sports industry is proving to grow bigger and faster than the GDP. It is big in the booming nations Brazil, India, Russia, and China, and the already matured markets North America and Europe. There are not only events that occur every year, sports events such as FIFA and Summer Olympics are every 4 years. Many studies have shown that the sports revenues yearly are steady, but the money spent on them changes from yearly. For example, in 2008 due to Beijing Olympics and UEFA Euro football tournament held in Switzerland and Austria, 8% of revenue was accounted by these events. Much better than 2007, when only 1% of revenue was accounted.
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Have you wondered that how do sports create so many values? The rights owners are the people, they make the structure of all the professional sports that are played around the world. These people do everything from making the rules, organizing the event, to generating revenues from different matches, marketing rights, and media. There are 4 main pillars, and these are the basis of the sports value. Properties: From the products to the players, these are the true assets managed by a rights owner, the best way to generate money from fans. These will include all kinds of leagues like the premier league, golf PGA tours, teams like the NY Yankees, and not to forget the athletes like Lionel Messi and Roger Federer.
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Have you wondered that how do sports create so many values? The rights owners are the people, they make the structure of all the professional sports that are played around the world. These people do everything from making the rules, organizing the event, to generating revenues from different matches, marketing rights, and media. There are 4 main pillars, and these are the basis of the sports value. Properties: From the products to the players, these are the true assets managed by a rights owner, the best way to generate money from fans. These will include all kinds of leagues like the premier league, golf PGA tours, teams like the NY Yankees, and not to forget the athletes like Lionel Messi and Roger Federer.
Management: Before, the conversion of properties was based on gate revenues, but today sports are dependent upon marketing rights and media, to achieve more revenues. The rights owners act on their behalf to structure deals, and trade marketing rights and media.
Event: Live events is what everything is dependent upon, a huge numbers of fans is needed, to generate a huge sum of revenue.
Content: There is one problem, a stadium can only seat a certain number of people, to generate an extra revenue you need more sources. If you package content for sponsors and broadcasters, it will give you the opportunity to make the extra revenue.
Event: Live events is what everything is dependent upon, a huge numbers of fans is needed, to generate a huge sum of revenue.
Content: There is one problem, a stadium can only seat a certain number of people, to generate an extra revenue you need more sources. If you package content for sponsors and broadcasters, it will give you the opportunity to make the extra revenue.
These four pillars makes the sports value an excellent cycle. To raise the value of a property, you need to shape it right, and rights management can make it more likeable. For example when T20 (twenty-twenty) Cricket was created in 2003, they shaped a better package from shortening the game. The sports value chain has similar rules in book publishing, music productions, and other live events.
Due to the wave of stadiums built around the world, the live sports events have taken on a completely new level. The global recession has bounced down the general expected revenues, but it is coming back. This had affected the sports industry in a huge way, and negotiations have been made from time to time to adjust the problems. Still sports are the worldwide content for broadcasters, and it attracts large audiences. Another problem is the demand being higher than the supply. No matter if its sponsors, bands, or public appearances, there is only a number of things any player or team can do. This is a major drawback for generating revenues, and could lead to serious issues in the future.
Due to the wave of stadiums built around the world, the live sports events have taken on a completely new level. The global recession has bounced down the general expected revenues, but it is coming back. This had affected the sports industry in a huge way, and negotiations have been made from time to time to adjust the problems. Still sports are the worldwide content for broadcasters, and it attracts large audiences. Another problem is the demand being higher than the supply. No matter if its sponsors, bands, or public appearances, there is only a number of things any player or team can do. This is a major drawback for generating revenues, and could lead to serious issues in the future.