Media Rights Grab the Largest Share of the Market According to PwC’s 2017 Sports Outlook report, gate receipts generated the most revenues of 5 major categories in the North American sports market from 2012 through 2017; however, 2018 is the year when revenues from media rights will ascend to #1. Projected media rights for 2018 will total $20.135 billion, compared to $19.556 billion for gate receipts, with total North American sports market revenues totaling $71.859 billion, a 3.7% increase from 2017’s $69.282 billion. Media rights revenues will also increase at a larger rate during 2018 than gate receipts, or 5.6% and 2.1%, respectively. Sponsorships are forecast to have the largest 2018 rate increase, or 5.7%, and also be first during 2019 and 2020.

Streaming TV Services/Networks Step to the Plate Media rights revenues will surpass gate receipts in the North American sports market because, first, the massive television rights for most major sports extend into the next decade: MLB through 2022, NFL 2022 and NBA 2024-25. Streaming services, and even telecom companies, have now entered this competitive landscape, with Verizon, inking a 5-year, $500-million-per-year contract to live stream NFL games on mobile and digital devices. During January 2018, YouTube TV announced it had secured exclusive rights to broadcast a new Major League Soccer (MLS) team in Los Angeles, which also includes naming rights on team jerseys. This is a first-of- a-kind deal.

Where Would Sports Be Without TV and Vice Versa Despite some erosion of ratings for major sports TV broadcasts, Nielsen reports a total of 134,000 programming hours (which include the event and any “shoulder” programs [anthologies, commentaries and news]) during 2017, a 6.3% from 2016. In addition, Q1 2017 Media Value across TV television sports sponsorships were more than $7.35 billion, or a $54 million increase compared to 2016. Of particular significance is that many non-traditional advertiser categories increased their sponsorships. Banking, financial services and health care averaged, together, an 8% increase in Q1 Media Value from the 2014-15 season through the 2016-17 season.

Major College Sports Suffer from Decreasing Attendance College football has a rabid following; however, the 2017 season had the largest decrease in per-game attendance since 1983, or an average of 1,409 fewer fans per game for the 129 Football Bowl Subdivision (FBS) schools. Even the Southeast Conference (SEC), where college football is almost a religion, experienced its largest per- game average decrease, or 2,433 fans, since 1992. Although small, average attendance at both men’s and women’s Division 1 college basketball for the 2017 season also decreased, or an average of 115 fewer per game for men’s basketball and 6 fewer per game, on average, for women’s college basketball.

Sports Betting May Finally Become Legal in Many States According to Greenberg Quinlan Rosner Research, 55% of Americans support legal sports betting and 19% stated they had bet on sports during the year ending April 2017, which increases to 45% among avid fans. Although the legal details are complex, the US Supreme Court may soon rule on whether states are allowed to establish legal sports betting. Although all the major sports leagues have not supported legal sports betting, the NBA and MLB have softened their stance. As many as 18 US states are likely to legalize sports betting if the Supreme Court rules in New Jersey’s favor. Currently, illegal sports betting in the US is estimated at $150 to $400 billion and could generate another $12 billion per year in gross gaming revenues.

Factors Affecting the Future of Sports With the next round of media rights contract for the major league sports during the 2020’s, media and leagues will have to account for consumers’ increasing interest in and use of immersive technologies, such as augmented and virtual reality. Since 1996, more than $55 billion has been spent on building major sports stadiums, arenas, etc. Some industry analysts think there has been an overbuilding of multi-sports complexes, but additional building is anticipated, especially in western US states. Although interest, participation and attendance are small compared to major league sports, there has been an increase in “new” sports, including roller derby, squash, geo caching, bouldering, quidditch and pickleball.

Advertising Strategies Use The Media Audit data on page 1 of the Profiler to show your clients the prime age groups to target in conjunction with local sporting events as well as the large percentage of the youngest female cohort, which advertisers often overlook. Keep yourself informed about the possibility of sports betting becoming legal in your state and its mechanism, which may create potential new advertisers or a new source of revenue for your existing clients and a service they would want to advertise. The Nielsen data at the top of page 2 of the Profiler provides ammunition for you to approach banking, financial services and health care businesses in your market and convince them that sports broadcast sponsorships are working well at a national level.

New Media Strategies Based on the Nielsen data (page 4 of the Profiler), Snapchat is a prime social media platform particularly to reach those younger female fans. Advertisers could promote a post-game-day coupon for young female fans who post a group photo from the sports venue. With NBA fans having the most social media engagement and the prime NBA demographic being African American men, advertisers have an opportunity to reach them efficiently with promotions and social media content that will resonate with this audience. Host a contest on social media asking people to post videos of their best cheerleader or marching band imitations, with or without uniforms and instruments. Ask everyone to vote for the best or most unusual, with a prize for the winner and a mobile coupon for everyone.