I read a very interesting article on the exponential growth of the sports industry in recent decades, I bring it to you summarized here.
From 2014 to 2023, media rights revenues for the top 15 sports leagues more than doubled; in 2022, FC Barcelona finalized a $300 million deal to rename their iconic stadium the Spotify Nou Camp and last July, a consortium including Magic Johnson picked up the Washington Commandos for a record $6.05 billion, making them most expensive sports team in the world.
To truly understand the rise of global sports fandoms, we have to look back to the latter half of the 20th Century and the rise of cable television, which ushered in a new era of globalization and fan engagement, allowing whole seasons of live sports to be broadcast into living rooms anywhere in the world. No country benefited more from this than the U.S., and no single individual benefited more than Michael Jordan, whose infamous 1984 sneaker deal with Nike helped propel the commercial age of sports.
The second major technological breakthrough came with the emergence of social media and global streaming. Previously, to follow an international league or team required a significant commitment in both time and effort. Despite the emergence of some globally-adored superstars like Jordan and David Beckham — whose 2003 signing to Real Madid’s roster of Galacticos reportedly led to more than 1 million t-shirt sales in his inaugural season, due to his popularity in South East Asia — most sports fandom at this point was still driven primarily by family ties and were limited by time zones and geography.
However, It was streaming and the ability to follow players and clubs via social media that skyrocketed the value of these assets towards the stratosphere that they occupy today with fans able to follow their favorite clubs and players, both on and off the field. This watershed moment welcomed a whole new generation of fans into these sports spanning a whole world of commercial opportunities.
Some leagues, like the NBA, have gone one step further, introducing collaborations with the likes of Louis Vuitton in order to generate more immediate relevance. Others, like Major League Soccer, have appointed fashion designers such as Guillermo Andrade to Creative Director roles, recognizing the opportunity to build fandom of sports leagues through culture, regardless of pre-existing affinities, or even performances on the field.
Perhaps the most prominent tactic has come from producing high-end unscripted content. In 2018, Netflix commissioned Box-to-Box films to document one full Formula 1 season in its now-landmark series Drive to Survive. This led to huge growth in the viewership and fandom of Formula 1, particularly in the US. Today, more than half of American Formula 1 fans attribute their fandom to the show. Similar attempts have since been made in soccer, tennis, golf and cycling — all looking to emphasize the global nature of their sports to maximize fan appeal.
The growth of soccer in the US is a perfect example of the types of fandom ushered in by social media and the potential offered from global streaming deals. In its recent watershed deal, Apple launched the first-ever global rights broadcast for the MLS (a rumored test run for the NBA) that includes a unique part-royalty split with the world's best soccer player, Leonel Messi. Considering what cable television did in the 90s for the likes of Jordan, it’s clear why MLS and Messi are excited about the prospect of this partnership. In just 7 days, Inter Miami’s Instagram account went from 1 to 10 million followers and, at the point of writing this, they now sit at over 16 million. For context, that’s almost 7 million more than their namesake Inter Milan, who have been around for over 110 years longer and have won three UEFA Champions Leagues.
This strategy for growing new sports through offering unique streaming opportunities isn’t limited to men’s sports. In 2021, Amazon announced its own landmark deal for exclusive global streaming rights to the WNBA (Women’s National Basketball Association). In 2023, the WNBA reported revenues of around $200 million, a 100% increase from 2019, demonstrating the potential for this strategy as well as the staggering growth of women’s sports as a whole. This has led to significant change in how the leagues market themselves in order to engage fans in a way that speaks inclusively and authentically to new growing fan bases.
It’s hard to predict exactly where the limit is for the number of professional sports leagues and clubs that will be able to sustainably operate in the future. After all, with increased access also comes increased competition, and there is a limit to the amount of attention and support fans have to give. That said, with the increasing budgetary pressures on the production of scripted entertainment and platforms giving fans seemingly infinite ways to gain access to sports content, the growth seems poised to continue for some time. One thing is for certain, however; these fandoms will continue to grow more global and diverse, and it will be the job of brand managers everywhere to ensure their clubs and leagues are continuing to keep up.
Written by Richard Swain, April 2024
Source: The Growth of a Trillion Dollar Industry - DesignStudio
Below is a collection of interesting links:
7 identities that show the power of branding in the world of gaming and esports
Red Bull opens its largest esports venue in Denmark
Germany changes the number 4 on their shirts because it looks like the symbol of the SS
Finally I leave you with this beautiful campaign from Asics that shares the new version of the “Before and After” photos for Mental Health Day.
New research from Asics has revealed that 80% of people feel demoralized after seeing the usual "before and after" body transformation images, and that the images can make 48% of their bodies feel worse. The campaign features a series of "before and after" images, focused on highlighting the improved mood and mental health that exercise can bring, as opposed to the usual wholesale physical transformations we're so used to seeing in these images, all in time for World Mental Health Day.
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Thank you,
Fabio