Sport’s $2 trillion fan economy growing faster than global GDP
Sport’s $2 trillion fan economy has outgrown the global GDP rate by nearly 66 per cent over the last 15 years, according to new research. Since 2010, the fan economy has “compounded at approximately six per cent per year on average”, a report published this week found, “1.6x the 3.8 per cent growth of global [...]
The global sports industry has generated a fan economy worth $2 trillion, surpassing the growth of the global GDP by nearly 66 per cent over the last 15 years, according to new research. The fan economy, encompassing merchandise, apparel, experiences, and media consumption, has grown at an average annual rate of six per cent since 2010, compared to the global GDP's three per cent growth during the same period.
Two Circles, a sport and entertainment marketing agency, attributes this growth to the expansion of traditional value capture mechanisms, as well as the emergence of newer spaces like mobile gaming, wagering, AI, and the creator economy. The report highlights high-profile investments in sports teams and assets, with private equity funds and investors targeting fandom products to broaden their reach.
Michael Iger, for example, has been involved in a record-breaking $12.5 billion deal for the Los Angeles Lakers. As the global sports market is projected to grow by around 45 per cent by the end of the decade, driven by tech, data, and the fan economy, the UK is well-positioned to play a significant role in this transformation due to its global sporting appeal, rich heritage, major venues, sophisticated leisure market, and large consumer base.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
