The sports industry is filthy rich. Billions and billions of dollars are generated by sports for the sport officials, authorities, owners, athletes, teams and all agents who are directly involved in the sports themselves. But what is interesting is that the sports industry has far reaching effects on so many other economic sectors and businesses, that the money generated directly is dwarfed by the money created indirectly.
We are talking of course about how sports are making money for other parts of an economy. Obviously the most apparent business that is affected by the sports and is making big revenues is the betting industry. Bookmakers are best capitalizing on the sports industry. From every sportsbook in the US to every website offering online betting in the Philippines, all bookies across the planet are pocketing the popularity of sports and the enthusiasm of sports’ fans. In fact there are some sports or some events that are bringing millions and millions to betting sites- think of the Super Bowl LVIII for instance that created some $16 billion in bets!
But it’s not only the betting and the general gambling business that generate revenues from sports. There are so many other sectors that are indirectly influenced by sports, that it is safe to say, some economies are largely depending on them.
Retail business
Commercial and retail businesses are making big money due to sports. Just consider the merchandise that is circulated and is purchased by fans. And we are not talking only about the sport’s related merchandise – such as a football club’s logo t-shirt or a branded jockey let’s say – but overall apparel merchandise.
Athletes and players become icons to fans and people just want to get dressed like their favorite ones, wear the same shoes and accessories and pretty much be like them. This immediately spurs an entire mechanism for selling more and more products. Fashion businesses are teaming with big athletes, fashion brands sponsor sports’ players and they are all contributing to growing retail sales – sales that are induced by the sports themselves.
And it’s not only apparel. Every product that is endorsed, marketed or promoted by sports people, becomes an instant hit and a revenue-making source. Social media has greatly facilitated the commercialization of everything from sports’ influencers!
Tourism and hospitality
Besides the retail business, it is also tourism and hospitality that are greatly affected by tourism. In fact, the most apparent way is when we consider a big sport event and the tourism activity that it generates.
Attendance does not only bring money from ticket sales. It means more people gathered in a place and more visitors means greater overall consumer spending and consumption of the hospitality services – whether these are restaurants and bars, accommodation units and hotels or even street food service businesses.
Media business
The media business is also blossoming because of sports. Broadcasting rights and streaming are revenue-making machines. Media companies are getting richer and richer from big sporting events, leagues and popular games.
The world goes crazy to watch the Grand Slams, the Super Bowl, the NBA playoffs and finals, the Olympic Games, the NHL Stanley Cup finals or the UEFA Champions League finals and the broadcasting, live coverage and everything else related to streaming these events brings in huge amounts of money from advertising.
Infrastructure development
And on top of all these comes infrastructure development in the places where big sporting events take place or where sports are really blooming. Local communities see major works and infrastructure development going on, when they have a big new stadium, let’s say, being built for a growing football club or when new facilities are added to host big sporting events. Construction companies, technical enterprises and technology providers are experiencing an influx of revenues when sports are involved.
These are the typical business sectors that are affected by the sports industry, generating indirect though invaluable revenues for the entire economy. Sports are multi-billion making ‘vessels’ that have spillover revenue-making effects in a number of surrounding and related economic sectors.
