MARKET TRENDS

& RESEARCH
ANALYSIS
CAMILO VELASQUEZ, EKATERINA STEPANOVA
SPORT MARKETING - SPRT-218-0NC

SHERRY DOIRON

THURSDAY, OCTOBER 30, 2023

Table of Contents

Introduction 2

Key External Drivers 3

Industry Outlook 5

Products and Services 7

Fan Experience 11

Infographics 13

Conclusion 14

References 14

MARKET TRENDS & RESEARCH ANALYSIS 1

Introduction
In the dynamic landscape of today's sports industry,
understanding the trends and developments that shape its
future is paramount. In this report, we have familiarized
ourselves with the Sport Industry Outlook 2023 by PwC.
We've had the unique opportunity to scrutinize and
elaborate on the various elements discussed in this article
by applying knowledge from our Sport Marketing class.

We used research sources such as Statista, Statistics

Canada, Vividata, Marketline and a few more external
credible sources to support our research, all of which
contributed to the depth of our analysis.

Additionally, to craft this report we used Canva to engage

the reader and make it visually appealing.

This report aims not only to expand our own understanding

but also to offer valuable information to our peers,
professors, and all enthusiasts of the exciting world of
sports marketing. We endeavoured to provide a
comprehensive and insightful report that sheds light on the
fascinating world of the sports business and its critical role
in shaping the games we love.

MARKET TRENDS & RESEARCH ANALYSIS 2

 Key External Drivers
12 key trends listed in the report: Immersive technology is allowing sport
organizations to do two things: upgrading venues
1. Data Innovation Can Drive Sports Sponsorship
and offering an enhanced in-stadium fan
Value.
experience and expanding the scope for potential
2. Smart Venues: Reinventing Connected sponsors to advertise their brand; both things by
Experiences. using tools such as AI, NFT’s, metaverse
3. Women's Sports are Winning Over Fans—and technologies, augmented reality, virtual reality, etc.
Wallets.
4. Franchises go Global.
5. Sustainability is the Future. Going global is also one of the most important
6. Valuation Overtakes Cash Flow. trends since it opens a broader range of markets
7. Streaming Expands (and Fragments) Further. to promote the product. By understanding these
8. Vertical Integration of Sports Media Continues. new markets and creating a deeper cultural
9. Mid-Major Sports Rise in the US. connection with them, sport organizations
10. NIL Changes the College Sports Market. cultivate a global fanbase to create unique and
11. Emerging Technologies Transform Sports globally resonant experiences. In the past, the
Experience United States market was resistant to adopting
12. Mobile Sports Betting Heats Up. globally accepted sports such as soccer and
Formula 1. Once they accepted them,
internationalization accelerated.
The six "playbook" topics were selected to be
covered within this group of trends for
particular reasons: Another disruptive trend is the idea of valuing a
Those trends were selected because they burst
sports franchise for its potential long-term
the market with innovative ideas and techniques that
marketability rather than immediate profitability.
enhance the fan experience, that ultimately is what
In other words, instead of just looking at ticket
the customer remembers the most. The culture of
sales or immediate profits, private equity
creating memorable experiences has increased in the
investors focus more on how they can potentially
recent years and sports organizations are embracing
market the product and for how long they can do
this to generate more revenue. Those trends
so.
contribute to generate the biggest profit.
Women's Sports and Sustainability are two trends
Disruptive technology and data collecting that deserve to be covered not because they are
awareness have changed the game. To capture innovative ideas or disruptive technology, but
more sponsors, sport organizations are offering because of political and sociological changes in
demonstrable return on the investment by the world (Ensuring equal rights for women and
providing detailed metrics on how sponsorships being respectful to the environment are not
impact fan behavior. innovative ideas; they're common sense). I would
say these trends are like a pendulum. They move
according to political and societal changes.

MARKET TRENDS & RESEARCH ANALYSIS 3

The strategies to market a product have always Government funding and policy support for
changed depending on what it is the current mid-major sports such as Lacrosse and
standard. There is a reason why 60 years ago Pickleball. For example, In Colombia the
brands did not market women’s sport or departmental and national government plan to
sustainability. Politically and socially the standard invest large amounts of money in a Formula 1
has changed and the brands and their strategies circuit to incentivise tourism. (Ospina, 2023)
have changed with them, creating new trends on Legislation around Name, Image, and Likeness
their way. Participation of women in sports and (NIL) affecting college sports.
environmental responsibility were not primary Tech and data regulation affecting emerging
topics of discussion 60 years ago; therefore, brands technologies in sports.
were not interested in market their products More strict gambling legislation affecting
appealing to these concepts. Nowadays, those 2 mobile sports betting.
concepts are popular and brands only use them to
promote their product or experiences and generate Economic
more revenue.
Economic macroeconomic conditions
External Drivers - PESTLE influencing sports sponsorship budgets. During
Political Covid19, many companies over projected their
Data privacy laws affecting data collection and revenue and then inflation made them to
usage in sports sponsorship. reduce expenses, including layoffs. (Paul, 2023)
Building regulations and public funding Economic macroeconomic conditions affecting
affecting smart venue construction. investment in smart venues.
Government policies on gender equality Market viability and profitability of women's
affecting women's sports. sports. The women’s Copa Libertadores in
Trade policies and international relations south America registered low attendance this
affecting franchises going global. year, crating a sense of discomfort since
Environmental policies and regulations previous versions had better ratings. (Deportes
affecting sustainability in sports. RCN, 2023)
Investment and financial regulations in Global market conditions for franchises could
countries with authoritarian governments make sports organizations think twice to invest
affecting sports franchise valuations. in another country.
Regulatory decisions on net neutrality affecting Cost and ROI of sustainable initiatives in sports.
sports streaming. Some renewable technologies could not be
Foreign ownership and antitrust laws affecting profitable yet.
vertical integration in sports media. In some Poor management taking advantage of future
countries the tv rights for certain sports belong potential to sell a sports company at exorbitant
to the state and this could make difficult this prices.
integration. (Clarin Editorial Team, 2023) Streaming companies’ decisions affecting
streaming subscriptions. Netflix added 5.9
million new subscribers in last three months

MARKET TRENDS & RESEARCH ANALYSIS 4

 Improvements in predicting results with Technology sustainability.
machine learning could lead to a different No major external environmental drivers that
approach from mobile betting companies. impact mobile sports betting.

Legal

Regulations around data security and privacy.

Safety and accessibility laws for smart venues.
Gender discrimination laws affecting women's
sports.
International business laws and regulations.
Environmental compliance for sustainability.
Financial disclosure and reporting
requirements.
Intellectual property and broadcasting rights
for streaming.
Media and copyright laws.
Sports governance and regulations for mid-
major sports.
NCAA rules and state laws for NIL.
Intellectual property and patents for new
technologies.
State-by-state compliance for mobile betting.

Environmental

Environmental cost of data storage and

processing (carbon dioxide footprint).
(Monserrate, 2022) (Cummings, 2021)
Sustainability in venue design and operation.
Concerns of expanding new sports to
extremely high dense populated cities.
Carbon footprint of global franchise operations.
Direct impact on reducing environmental
footprint.
Franchises located in high polluted cities could
see a lower valuation of their brand.
Energy use in streaming servers.
Sustainable media production.
Environmental footprint of different sports.
No major external environmental drivers that
impact NIL rights in college sports.

MARKET TRENDS & RESEARCH ANALYSIS 5

 Industry Outlook
The key projections that can be assumed measures, which is undoubtedly a profitable idea -
from this report for the sports industry over according to surveys, people are willing to pay
the next 5-10 years include... more for sustainable features.
According to this report, there are 6 key projections It is not surprising that college sports are rapidly
that will play a vital role in the near future of the evolving with potential impacts on recruitment,
sports industry. conference realignments, and brand engagement
with college athletes. Name, Image, and Likeness
First of all, sports organizations are leveraging tools (NIL) changes in college sports are creating a
like AI and augmented reality to reimagine the fan billion-dollar market, allowing athletes to profit
experience. The goal is to make games more from their image.
interactive through on-demand statistics and real-
time experiences. Insights from these AI powered “NIL will continue to change and isn’t going away.
experiences will help tailor offers and College athletes will get paid from here on out.
advertisements, and increase fan loyalty and Though there might be more regulation coming, it
revenue opportunities. will take a while to get there.” (Romboy, 2023)

AI is also influencing social media nowadays, which Emerging technologies will continue to transform
will continue to happen. To support this point, I the fan experience - wearables and AI are
found an additional article - for example, LaLiga enhancing sports experiences, from performance
uses AI to engage and retain fans, by monitoring to officiating, making games safer,
recommending content and providing additional fairer, and more engaging.
insight into the fan experience via sentiment
analysis. (Olavsrud, 2023) Lastly, mobile sports betting is evolving, the
legalization of it is intensifying competition among
Secondly, internationalization. Big leagues and mobile apps, demanding innovative
sports companies are expanding not only to other enhancements for market share. In future, sports
countries, but to other continents, all across the organizations will adapt, explore partnerships with
world. By embracing local fans and culture, sports mobile betting platforms to enhance fan
franchises create unique and globally resonant engagement and the overall sports experience.
experiences.
SportsEpreneur blog shares the following: In the
Also, sport industry will continue working towards United States, the National Council on Problem
sustainability and achieving a ‘green’ picture of their Gambling has reported that 45% of sports
brands. They are addressing climate change issues, wagering now occurs online. In the United
building carbon neutral stadiums and facilities, Kingdom, a long-standing tradition of sports
developing new ways of minimizing their betting has led to tax receipts from the General
environmental impact. Leagues and teams are Betting Duty totaling approximately £635 million
focusing on energy-efficient and waste-reducing in 2021. (Kasimov, 2023)

MARKET TRENDS & RESEARCH ANALYSIS 6

This information is important for decision-
makers to understand because...
This information is critical for understanding the
potential fields of expansion to stay up to date and
keep up with new trends. Decision-makers need to
align their long-term strategies with the evolving
landscape of sports, ensuring they remain
competitive and relevant.

By understanding trends like AI and augmented

reality, international expansion, sustainability,
changes in college sports, and emerging
technologies, decision-makers can enhance the fan
experience and drive revenue growth. In summary,
this knowledge equips decision-makers to make
informed choices that will benefit their
organizations in the long term.

MARKET TRENDS & RESEARCH ANALYSIS 7

 Products & Services
The main revenue sources in the spectator analytics to offer coaching advice to aspiring players.
sport sector mentioned are...
In terms of digital assets and physical Virtual Meet and Greets: Where fans can pay to
products/services leveraged , a sports team could have short online interactions with players or
coaches.
make money through:

Smart Seats: Seats equipped with touch

Virtual Goods and NFTs: Selling digital
screens/app linked to their seat for ordering food,
merchandise or memorabilia, often leveraging
merchandise, and even replays of game action.
blockchain technology for authenticity.
Virtual Reality Booths: Where fans can experience
Virtual Tickets: Even though the Mixed Reality virtual simulations like playing with their favorite
technology is still developing, teams could sell athletes.
virtual tickets. This would allow fans to experience
games through headsets like the Meta Quest 3, Augmented Reality Merchandise: Physical items
simulating the viewpoint from an actual seat in the that, when scanned with an app, provide additional
stadium. digital content.

Streaming Services: Live streaming of games, IoT-Enabled Fan Gear: Such as foam fingers or caps
behind-the-scenes content, or exclusive interviews. that can change color based on events during the
Offering premium content, early access to tickets, game (e.g., turning red when the home team scores).
and exclusive merchandise.
Electric Vehicle Charging Stations: Encouraging
Virtual and Mixed Reality Experiences: VR tours eco-friendly practices among fans.
of the stadium. It also can include pre-game show
streaming link or a digital matchday program. However, there are other revenue sources that are
not specifically products or services directly
offered to the public, but generate revenue for the
Podcasts and Webinars: Featuring players,
organization:
coaches, and other personalities associated with
the team.
Media Rights: Media rights often make up a
huge chunk of revenue, especially for popular
Fantasy Leagues: Run by the team, offering
sports and leagues. The move to streaming
unique rewards like signed merchandise or VIP services is likely to increase this further.
experiences.
Global Expansion: Entering new, large markets
Social Media Exclusive Content: Accessible only like China or Europe can significantly boost
by subscribers or members. revenue streams across the board, from

Virtual Coaching: Utilizing player stats and video

MARKET TRENDS & RESEARCH ANALYSIS 8

ticket sales to merchandise. Sport Betting: The legality of mobile sports betting
varies by jurisdiction, and any changes in these laws
Sports Sponsorship: Sponsorship deals, could significantly impact revenue. Moreover, some
especially for high-profile teams and athletes, sport organizations could ban sponsorships from
can be extremely lucrative, and data-driven betting companies.
targeting increases this potential. Offering
digital real estate for sponsor messages, Smart Venues: For smart venues, local building
including in streaming services or apps. Utilizing codes and zoning laws can restrict the kinds of
AR and VR technology to place advertisements technologies that can be implemented or require
within the sports viewing experience, whether costly adaptations.
in-stadium or through a broadcast.
Vertical Integration: The governing organization
Sports Betting: The rapidly growing sports for sports teams might implement new regulations
betting market represents a significant new that restrict teams from creating or profiting from
revenue stream for sports organizations. content. The league itself may seek a portion of the
revenue generated by the teams through content
Smart Venues: High-tech stadiums can offer creation.
enhanced experiences that can command
higher ticket prices and additional in-venue This information is important for decision-
purchases. makers to understand because...
Understanding the current context of the sports
Vertical Integration of Sports Media: market is crucial to make decisions because allow
Producing and selling content directly can be a them to have a x-ray image of how the market is
solid revenue stream, avoiding the need to behaving and tailoring their strategies to go with
share profits with third-party platforms. these trends.
Regulatory restrictions could limit the
growth of these products and services in the Grasping the importance of securing and analyzing
following ways... data is vital to generate more opportunities of
Media Rights: Regulations on net neutrality could revenue, extend to other markets, valuating a
limit how streaming services package and deliver sports brand, understand fans behaviour, and
sports content, affecting the viewer experience and improve the engagement with the fans. Data is a
potentially raising costs. cross-sectional concept that relates to almost
every trend explained in the report. It goes from
Sport Sponsorship: Stricter data privacy laws marketing to performance and can help decision
could limit how data is collected, stored, and used, makers at all levels of a sport organization
affecting sports sponsorships and fan engagement (marketers, coaches, managers, etc) to have more
analytics. certainty to where to go.

Global Expansion: International trade policies can Understanding the power of technology and how
affect how sports franchises expand globally, immersive technology can help to engage more
limiting market entry in certain countries. fans is also a big competitive advantage.

MARKET TRENDS & RESEARCH ANALYSIS 9

Decision-makers can seize and leverage these growing sports, thereby capturing a significant
technologies to guide the brand to a better place market share.
and achieve the organization goals. Understanding
these technologies will also help marketers to
create a more enjoyable and memorable
experience, which is the ultimate goal.

The importance of understanding women’s sports

is also crucial since more women in the grassroots
levels are getting involved in sports, which in the
future means more participants and a bigger
market. There is a huge opportunity with this trend
growing worldwide and decision-makers should
take advantage of it. Christine Sinclair said in a post-
game interview after they got relegated the
following “I think what you are seeing in women’s
football is teams are catching up…”. This suggests
this is a global strong trend.

Sustainability is also important to understand since

there is a growing consumer demand for
environmentally responsible practices. Ignoring this
could lead to a decrease in fan engagement and
ticket sales.

Secondly, a commitment to sustainability can

enhance a brand's image, potentially attracting
more sponsors who want to be associated with
environmentally responsible entities. Another
important aspect is that sustainable practices, such
as energy-efficient stadiums or waste management
systems, can result in long-term cost savings. As
mentioned earlier, sustainability is now the norm,
and given their substantial social impact, sports
organizations bear the responsibility to lead by
example in implementing eco-friendly practices.

Finally, having an open mind and having different

options is vital. For that reason, understanding how
mid-major sports rise in US or other parts of the
world is key to build strong sport projects around

MARKET TRENDS & RESEARCH ANALYSIS 10

 Fan Experience
The various modes listed throughout the apps play a significant role in the fan experience.
report that work within the fan experience Marketers in this domain need to focus on providing
are essential for marketers to focus on due innovative enhancements to the mobile betting
to their significance in... experience to stand out and gain a share in the
Data-driven personalization allows sports teams to rapidly expanding market.
offer customized content and engage fans more
effectively, which is essential for marketers looking Incorporating sustainability practices in sports
to increase fan loyalty and revenue. organizations' operations and fan interactions is
becoming increasingly important. It is a trend, and
With more detailed data, sports teams can identify fans are conscious of environmental issues, and
who attended the game, their buying patterns at marketers need to address this concern by
promoting sustainable practices. This not only
the stadium, and how they moved around during
enhances the fan experience but also aligns with
the event. This valuable information allows for
broader social and environmental goals.
better-targeted sponsor interactions and more
genuine engagement, whether fans are inside or Leveraging women's sport can be achieved
outside the stadium. (Giorgio, 2019) by considering the factors contributing to its
growth, such as...
The global expansion (internationalization) of sports
Women's sports have experienced remarkable
franchises, driven by advances in technology and
growth, driven by increased visibility through
strategic player acquisitions, is an important aspect
initiatives like the WNBA, adept use of social media,
of the fan experience.
and name, image, and likeness (NIL) deals by female
athletes. Additionally, the presence of niche fan
Understanding new international markets and bases with strong brand loyalty offers unique
building a cultural connection with these audiences investment opportunities. This growth is a significant
is essential for marketers. As sports franchises area of focus as it provides potential for increased fan
cultivate a global fanbase, their ability to engage engagement and revenue.
fans from diverse backgrounds becomes a key
Sustainability plays a significant role in fan
factor in their success.
interaction and experience, and sport
organizations can lead in this space by...
The collection of real-time data, especially within
venue operations, enables proactive planning to ustainability is trendy according to recent surveys,
anticipate and exceed fan expectations. This therefore, it plays a crucial role in fan interaction and
includes aspects such as facility management, experience - audience is willing to pay for sustainable,
navigation, and concessions. Marketers can utilize carbon-neutral and/or energy-efficient services. It is
both a challenge and an opportunity for the sports
this data to enhance the fan experience and ensure
industry to implement new ‘green’ features in their
fans have a seamless and enjoyable time at events.
work.
Commitment to sustainability enhances the
With the legalization of online sports betting, mobile
organization's

MARKET TRENDS & RESEARCH ANALYSIS 11

brand image, attracts like-minded sponsors, and
resonates with fans who care about environmental
issues.

PwC report suggests that sport organizations can

use digital technologies in order to scenario
planning and real-time monitoring of sustainability
initiatives. Not only that, future venues will be built
in accordance with sustainability focused designs.

A perfect example of future sustainable project -

2024 Paris Olympics. “Eco-conscious partnerships
and initiatives are being put in place as organisers
aim to cut the Games’ carbon emissions by 50%”
(Steer-Stephenson, 2022)

The advancement and utilization of

technology can affect the climate by...
The advancement and utilization of technology
have the potential to both positively and negatively
affect climate. On the positive side, technology can
be employed to develop eco-friendly solutions
within sports venues, including energy-efficient
measures.

Data-driven technologies can optimize logistics,

leading to reduced emissions. However, excessive
use of technology, particularly energy-intensive
data centers and infrastructure, can contribute to a
higher carbon footprint. Therefore, it is vital for
sports organizations to strike a balance between
technological advancements and sustainability
measures to minimize their environmental impact.

MARKET TRENDS & RESEARCH ANALYSIS 12

Conclusion
We had the pleasure of delving into the dynamic world of
sports business, exploring the trends and projections that
will drive the industry in the coming years. The sports
industry continues to captivate audiences and innovate
through technology, sustainability efforts, and evolving fan
experiences.

Understanding these trends is crucial for all stakeholders,

from team owners to fans, as it offers a glimpse into what
the future holds for this exciting field.

We hope this report has been informative and has provided

valuable insights into the ever-evolving sports landscape.
Thank you for allowing us to be part of this journey.

Kate x Camilo

MARKET TRENDS & RESEARCH ANALYSIS 14

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MARKET TRENDS & RESEARCH ANALYSIS 16