Sports industry Essay

Sport’s industry According to the study of A.T.Kerney spots industry worth at this time among $480-$620 billion. It includes the construction of infrastructure, licensed products, sports equipment, and other sports events. The sports events give an opportunity for broadcasting, generating advertising revenue, selling the broadcasts to the subscribers, and sponsors can choose different ways of media. (Hervé Collignon, 2011) Sports event market The sporting event market includes ticket selling for events, marketing revenue, media. According to the research of A.T.Kerney worldwide market of sports events worth around $64 billion. The main share of the market takes sports events like football (43%), U.S. football (13%), baseball(12%), Formula 1 (7%), basketball (6%), hockey and tennis (4%), and another kind of sport. (Hervé Collignon, 2011) Football is the king of the sports industry. It remains yearly revenue of $28 billion that is bigger than all U.S. sports in total. Value chain So how a sports industry generates value? Exists four ways of creating value in the sports industry. The first way is properties. The properties are an intangible assets created by fans or investments. It includes a lot of parties such as leagues (Premier League, LaLiga), teams, athletes. (Hervé Collignon, 2011) The second way of creating value is rights management. Parties, which or who own the right can act on their behalf. As A.T.Kerney write “ Parties not only structure the deals but trade media and marketing rights”. (Hervé Collignon, 2011) According to the A.T.Kerney, the third way of generating value in the sports industry is an events management. The previous way of generating value rights management strictly depends on live events. Organization of live events for fans can create additional revenue. (Hervé Collignon, 2011) The last way of creating value in the sports industry is content packaging. The innovations like broadcasting can spread the sporting event from 50 000 of fans in the stadium to the millions around the world. It creates much wider revenue for the sports industry. (Hervé Collignon, 2011) There are 8 essential factors that help grow and develop the sports industry: sports activities and events, human, sports media, sports goods, sports facilities, commercialization and marketing, professional service enterprises, education (Pitts and Stotlar, quote from 2002.) • Sports activities and events Organizations create sports events like a product. Fans buy tickets on these events, media share photos, new videos. Those events give an opportunities to create broadcasting that increase audience and revenue. Because of innovations sport becomes more and more popular, and suppliers create more ways to encourage consumers. (Ali GÜVERCİN, Halil İbrahim MİL, 2016) • Human Sport is becoming a very important part of the social life of the human. People pay a lot of attention to the sport in their life. Someone actively involves in the sport, someone just watching and following the sports events. The interest of people to the sports develop an economy and industry (Ali GÜVERCİN, Halil İbrahim MİL, 2016) • Sports media Media works like an informative and entertaining source for the audience, but also it creates an experience for the consumers. Using the opportunities media can direct the audience. And looking at the media we can see that it encourage people to the sports that creates interest in this industry. There are different types of media sources: TV, internet, magazines, newspapers, movies. (Ali GÜVERCİN, Halil İbrahim MİL, 2016) • Sport goods Sports clothes, equipment, tools encourage people to participate in the sport. New technologies create an interesting and innovative sports good for the customers. For example, better access to the training tools, or better clothes that helps to be faster and stronger, and work harder, and more effective. (Ali GÜVERCİN, Halil İbrahim MİL, 2016) • Sports facilities The sports facilities are the places, where is possible to do sport, prepare events like stadiums, courts, places for training. Those facilities like tennis courts, football pitches, golf ground encourage the interest of the audience. And new, more innovative facilities create greater interest from the audience. (Ali GÜVERCİN, Halil İbrahim MİL, 2016) • Marketing and Commercialization Sport becomes more and more commercial that involves the interest of entrepreneurs and sponsors to use advertising and economic expectations increase each year. Team’s and sportsmen products selling, branding of broadcast contributes sports industry development. (Ali GÜVERCİN, Halil İbrahim MİL, 2016) • Professional service enterprises Management and organizations in sports industry includes finance, law, economics, and accounting fields. All those fields should be under the control of professionals to develop the sports sector. (Ali GÜVERCİN, Halil İbrahim MİL, 2016) • Education Management of sports industry needs an education background. People, who will be maintaining and fulfilling the sports industry should take the special courses, seminars connected to this sector. Education is necessary for commercial parties. (Ali GÜVERCİN, Halil İbrahim MİL, 2016) Who controls the market of sports industry? Nike and Adidas control the biggest part of the market. Those two brands create new trends in this industry. Nike and Adidas create new innovations: new products, new designs, create new markets, new strategies of managing products, brands, company in general. But according to the WTR (world trademark review), Nike has a big opportunity in the battle of two giants. (Timophy Au, 2017)

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