Sports Industry Trends

Plunkett Research Limited scans a number of industries, including the Sports Industry (primarily from a US perspective). The major trends they are noting include:

• the impact of celebrity athletes on the popularity of their sport (e.g. Lance Armstrong and his positive impact on cycling)
• the resurgence of tennis (up 43% from 2000 to 2007) - likely the combined result of relatively lost cost and the high probability of local facilities that do not require 'gas guzzling' travel
• anticipated plumeting of markets involving motorized recreational equipment
• drop in the number of people playing golf in the US
• continued long-term growth in fitness-related activities - fastest growing activities include spinning (advanced stationary bicycles, Pilates, use of treadmills and use of the elliptical motion trainer
• the strategy of sporting goods manufacturers to constantly introduce new technologies to stimulate new sales and replacement of 'older' equipment.

Plunkett Research also notes the evolution in sport media:

• continued importance of online viewing
• growth in use of digital TV recording devices (DVRs such as TiVo) enabling fans to watch events according to their own schedules
• rapid development of sport viewing through cell phone screens.

The current Sport Industry Analysis speaks to the impact of the current global recession in 2008 and 2009:

• ticket sales and other revenues down for professional sports teams - combination of high prices and limited ability to pay
• sport and recreation equipment sales down
• sport gambling revenues plummeting
• golf courses suffering revenue declines - a few closing, others delaying refurbishing projects
• sports travel and tourism declining
• significant declines in sales of the most expensive sport/recreation equipment items such as RVs and boats.

According to Plunkett Research, the biggest opportunities in the sports industry today include:

• providing exciting, high-value opportunities for sport fans - such as high-tech gear at reasonable prices
• spectator sports ticket packages that represent better value
• high-value family recreational iatems that can be used at home or near the home
• exercise/fitness services or programs designed to appeal to aging baby boomers
• equipment and apparel that represents high value and exciting design.

Source: http://www.plunkettresearch.com/Industries/Sports/SportsTrends/tabid/274/Default.aspx (03/09/2009)