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Sports Media Will Help Industry Growth Through 2017

Sports Media will lead to industry growthIn a bit of a stagnant economy, US sports have proven to be quite consistent in their growth over the years.

This isn’t to say that the sports industry hasn’t been affected by the “economic fallout,” but it has at least stayed relatively healthy.

A steady three percent annual growth rate over the last five years can be attributed, at least in part, to sports media. It seems like the sports business machine has an engine that just keeps on turning.

Sports Media Will Lead to Projected 4.8% Annual Growth

In its annual industry outlook, PwC (Pricewaterhouse Coopers) projects 4.8 percent annual growth over the next five years, from $53.6 billion in 2012 to $67.7 billion in 2017.

These projected trends are driven by major North American professional leagues, including Major League Soccer, along with top-level intercollegiate sports.

Leading the way in “total cash,” gate revenue is expected to pull in $19.1 billion. This represents an annual growth of 3.9 percent.  Forbes claims that a large part of that increase can be attributed to the”new climate of labor peace, which follows those fallouts that shortened recent NHL and NBA seasons and contributed to a slight decline in gate receipts between 2008 and 2012.”

new-falcons-stadium-origamiIn a reaction to the economic fallout, “teams responded by freezing prices,” says Adam Jones, a PwC director and leader of the company’s sports practice.  Because fans are still not spending like they used too, stadium technology is expected to remain a point of interest in order to get fans into seats.

PwC forecasts just 1.6% annual growth in merchandise sales.  Because those numbers are strongly related to fan’s income levels, this is expected.

Sports media is the area that is expected to lead the way to the $67.7 billion in 2017.  A staggering growth of 7.7 percent per year has been projected for this part of the sports industry.  The sports media projection will lead to $17.7 billion. With new stadiums popping up and television deals on the rise, these figures aren’t that difficult to imagine.

Take the Atlanta Falcons’ new stadium as an example.

If any industry is going to push relatively large growth rates, it is going to be the sports industry, which is backed by some die hard fans and huge sports media deals.

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