Revenues in sports industry Term Paper Example | Topics and Well Written Essays - 1500 words

Revenues in sports industry - Term Paper Example Consulting company A.T. Kearney states that the sports industry in global scale is prospering, and today the industry is worth about 500-600 USD bn. (which includes sports events like simple games, national competitions, Olympiads etc., infrastructure and constructions, sports products and goods) (Collignon, Sultan, and Santander). Dynamics of sports industry revenues in global scale shows the overall growth of revenues for the past 9 years (table 1): expected revenue in 2014 is 36% more than it was in 2006 ("Changing the game. Outlook for the global sports market to 2015"). The constituents of Revenues are Gate revenues, Media rights, Sponsorships, and Merchandising ("Changing the game. Outlook for the global sports market to 2015") (table 2). According to the structure of revenues, the biggest portion of the total revenues belonged to Gate revenues (34% in 2006). The situation changed in 2014, when Sponsorship took the leading position (31%, which is 1% more than Gate revenues that year). The change of the structure shows that the representatives of other industries use sports industry to win new markets, gain new customers, increase their own rating among competitors and increase profits.Jonathan Jensen and Anne Hsu prove this with their research, which says that "net income at these firms (sponsors) grew faster than at S&P 500 firms in general (7.8% to 6.5% per year)" and "the top 16 (companies), which spent on average $160m a year on sponsorship, saw net income grow by 22.1% annually".