SPORT INDUSTRY
Challenges
Professional and non-professional sport play an important role in developed economies. Its ecosystem is complete and diversified according to the sporting disciplines and geographical areas. Their business models are different from one to another. Several variables impact the economics of these disciplines such as: broadcaster rights on conventional television (US sports, football), transfers (football), private sponsoring,…
Financial flows and economic impacts have been increasing steadily, leading to new profiles of managers and investors. These investments require specific support and structuring of the clubs and entities concerned. Economic monitoring, implementation of appropriate tools and governance are becoming an absolute necessity to avoid financial abuses.
Today, sport is part of the economy as a specific industry marked by values that set is apart from other sectors. However, professional sport is only one part of a larger and disparate whole.
Sport is also related to youth and game ; therefore has a strong societal and educational dimension. Authorities such as local and regional authorities are stakeholders and decision-makers in sportive industry. For local authorities, sports clubs are a key element in facilitating, energizing and promoting their territories. They must take these dimensions into account and find the best means of supporting and monitoring this policy.
The commitment of public authorities to sport’s values, and the support of associative commitments must therefore take into account the aspects of transparency of the budgets allocated to the communities as a whole.
Sports have been popular for many years and this popularity is expanding very rapidly in emerging markets. Sport has already experienced many periods of social change and upheaval, what could be deemed waves of change. Yet with the rise in popularity also comes the rise of challenges: new usages and habits, technological integration, game-day experiences, respect for the environment…
Some characteristics
1
A growing market boosted by textiles, footwear and Asian markets which, have a significant impact on the environment
2
A huge diversity of activities and a broad range of stakeholders
3
An industry where experience matters a lot: services, customization, ease of testing & delivery
4
Digitization and IoT are growing very rapidly to help monitor performance and health
Major trends
Environemental
More than any other industry, sport mindset is closely linked to health and environment. All types of sports create environmental issues and contribute to society’s broader need to examine human behavior in relation to the environment
Issues
Reducing the environmental footprint of sport
Diversifying activities to address climate change
Develop a green goals program
Using sport to educate people about environmental protection
Marketing development
Some markets are mature, seasonal or very dependent on meteorological conditions. Needs are evolving: healthy sport, adaptation to daily life, contact with nature, emerging practices, …
Issues
Enhance its positioning by balancing activities and products portfolio
Address the changing needs of customers and developing the “sport” experience
Create new market segments or conquer new targets
Experiential
Clients are quite volatile in sport consumption, especially for the younger generations (Millenials & GenZ). They are waiting for a high customization and value-added services within a unique experience
Issues
Address emerging segments (Millenials, skiing in China, new sport practices...)
Create a real sport consumption experience
Integrate technologies and digital services into the sport experience
Case studies
Sporaltec
Ligue Nationale Basketball
Ligue Nationale Rugby
Stade de France
