Factors Contributing to Industry Growth

Factors Contributing to Industry Growth
Lesson 1.2 Factors Contributing to Industry Growth Copyright © 2014 by Sports Career Consulting, LLC

Factors Influencing Industry Growth
LESSON 1.2 History of SEM Factors Influencing Industry Growth Increase in participation More people following sports and entertainment Increase in sports/entertainment offerings Attendance boom Media coverage Global products Copyright © 2014 by Sports Career Consulting, LLC

Evidence of Increased Participation Rates
LESSON 1.2 History of SEM Evidence of Increased Participation Rates The U.S. Youth Soccer Association reports that there were 100,000 registered players in Today the organization has grown to 3.2 million registered players and over 800,000 coaches and volunteers Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Evidence of Increased Participation Rates The number of U.S. golfers has risen to 12.6% of the population vs. 3.5% 50 years ago Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Evidence of Increased Participation Rates According to the National Federation of State High School Associations, the sport of lacrosse has seen a 280% increase in participation in the last decade Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Evidence of Increased Participation Rates Among sports and recreation activities that grew more than 15% the past 10 years, skateboarding led the way with a 74.1% growth, according to the National Sporting Goods Association (NSGA) Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Evidence of Increased Participation Rates “Skateboarding saw a remarkable increase in the last 10 years, due in part, to the television exposure provided by ESPN’s X-Games” - NSGA VP of Information & Research, Thomas B. Doyle Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Evidence of Increased Participation Rates According to a CBS Sports report, USA Hockey saw a record 519,547 people register as amateur hockey players in the US in 2014, 8,000 more players than any other year as non-traditional markets like California, Texas and Florida have grown exponentially over the past 20 years Copyright © 2014 by Sports Career Consulting, LLC 8

LESSON 1.2 History of SEM Factors Influencing Industry Growth Increase in participation More people following sports and entertainment Increase in sports/entertainment offerings Attendance boom Media coverage Global products Emergence of Internet and new technologies Copyright © 2014 by Sports Career Consulting, LLC

Increase in Those Following Sports & Entertainment
LESSON 1.2 History of SEM Increase in Those Following Sports & Entertainment U.S. television broadcast 800 hours of sports in 1971 Compare that to NBC’s coverage of the 2014 Winter Olympics in Sochi, Russia, marking the first time that fans had a chance to watch every Winter Olympic event live (compared with a total of 14 total hours of coverage from the 1964 Tokyo games) Copyright © 2014 by Sports Career Consulting, LLC

Increase in Sports/Entertainment Offerings
LESSON 1.2 History of SEM Increase in Sports/Entertainment Offerings More options for sports as participants: Disc golf the sport spread to 560 courses nationwide by 1995 and doubled that number by Today, the Professional Disc Golf Association boasts more than 4,000 courses globally and the game is played in more than 40 countries Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Increase in Sports/Entertainment Offerings More options for sports as participants: In 2013, Hawaii became the first state to sanction surfing as an officially recognized high school sport Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Increase in Sports/Entertainment Offerings More options for sports as participants: Also in 2013, the state of Missouri bass fishing became an officially sanctioned high school sport (joining the states of Illinois, Kentucky and Tennessee as states sanctioning fishing as a recognized sport) Copyright © 2014 by Sports Career Consulting, LLC 14

LESSON 1.2 History of SEM Increase in Sports/Entertainment Offerings More options for sports as participants: One school in Florida is attempting to legitimize Go Kart racing as an official varsity sport Copyright © 2014 by Sports Career Consulting, LLC 15

LESSON 1.2 History of SEM Increase in Sports/Entertainment Offerings More options for sports as participants: A new sport called Spikeball burst on the scene two years ago, and according to its governing body already boasts 125,000 participants, and is the fastest growing sport in the U.S. Copyright © 2014 by Sports Career Consulting, LLC 16

LESSON 1.2 History of SEM Increase in Sports/Entertainment Offerings More options for sports as participants: Rugby is the currently the fastest growing sport in the U.S.A. According to bloomberg.com, the number of rugby participants has increased 14 percent annually for the last five years and now boasts a record 1.2 million participants throughout the country. Copyright © 2014 by Sports Career Consulting, LLC 17

LESSON 1.2 History of SEM Increase in Sports/Entertainment Offerings More options for sports as participants: In 2016, Rugby will officially be a competitive event at the Summer Games in Rio for the first time since the 1924 Olympic Games (the event will be Rugby “Sevens”, a 7-on-7 version of the sport) Copyright © 2014 by Sports Career Consulting, LLC 18

LESSON 1.2 History of SEM Increase in Sports/Entertainment Offerings ESPN’s coverage features more than 65 sports including MLB, NBA, NFL’s Monday Night Football, NASCAR, MLS, FIFA World Cup, WNBA, college football, men's and women's college basketball, golf, Little League World Series, fishing, spelling, billiards, poker, arena football, eating championships, and the X Games Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Increase in Sports/Entertainment Offerings DirecTV now offers over 285 channels as part of their “premiere” package, including over 50 channels dedicated specifically to sports programming (and that doesn’t include the seventeen “specialty” packages that require an additional subscription like the NBA League Pass, NFL Ticket or NHL Center Ice). Copyright © 2014 by Sports Career Consulting, LLC

Attendance Increases History of SEM
LESSON 1.2 History of SEM Attendance Increases According to data from bleacherreport.com, NHL league attendance for the season topped 21.4 million, up 250,000 from the previous season Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Attendance Increases To put the league’s growth into perspective, the NHL’s attendance was 7,758,05 in the season NHL season attendance 21,400,000 NHL season total attendance 7,758,05 Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Attendance Increases Over 75 percent of movies in the top 50 all-time highest-grossing films (before inflation) were released after the year The highest grossing film in the 70s was Star Wars, at just under $800 million and in the 80s was E.T., at just $750 million. Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Attendance Increases In the summer of 2015, "Jurassic World" needed just 13 days in theater to surpass $1 billion in gross sales, a new record The previous record of 17 days was set just a few months prior by "Fast and Furious 7" Copyright © 2014 by Sports Career Consulting, LLC 26

LESSON 1.2 History of SEM Discussion Topic Titanic more than doubled Star Wars at the box office in terms of overall global ticket sales, but is that the whole story? Do you think twice as many ticket buying patrons attended Titanic than Star Wars? Why or why not? Copyright © 2014 by Sports Career Consulting, LLC

Discussion Topic Although Titanic’s box office figures are
LESSON 1.2 History of SEM Discussion Topic Although Titanic’s box office figures are incredibly impressive, the box office figures do not necessarily tell the whole story. Ticket prices in 1997 were much higher than they were in 1977, the year Star Wars was released and box office records are not adjusted for inflation. Copyright © 2014 by Sports Career Consulting, LLC

What is it??? Discussion Topic When box office numbers are adjusted
LESSON 1.2 History of SEM Discussion Topic When box office numbers are adjusted for inflation, the domestic top grossing film in American history is NOT Titanic. What is it??? Copyright © 2014 by Sports Career Consulting, LLC

Discussion Topic After adjustment, the top spot goes to Gone
LESSON 1.2 History of SEM Discussion Topic After adjustment, the top spot goes to Gone with the Wind, while Titanic slips to just 6th overall… Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Media Coverage Media coverage of sports and entertainment has grown significantly in the past half-century, placing athletes and entertainers in the public eye with incredible frequency Copyright © 2014 by Sports Career Consulting, LLC

Media Coverage History of SEM Television and radio provide alternative
LESSON 1.2 History of SEM Media Coverage Television and radio provide alternative news sources to newspapers while social media provides an even newer alternative to all other forms of media Profit potential for media centers encourage increased competition for top stories Introduction of Internet makes information available “on demand” and with increased frequency Copyright © 2014 by Sports Career Consulting, LLC

Media Coverage History of SEM
LESSON 1.2 History of SEM Media Coverage “Arnold Palmer…came along at the same time television was exploding in America. Now we’ve got global Internet access. Our sport wasn’t global when I began playing the Tour. Now it is. You can log on anywhere in the world an see what any player did in any tournament or for the year. With that international boom, that international stream of information, golf is getting exposed to parts of the world that it never even thought of getting into.” - Tiger Woods Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Global Marketplace The international marketplace continues to provide a platform for driving sales of sports and entertainment products and services Copyright © 2014 by Sports Career Consulting, LLC

Global Marketplace History of SEM
LESSON 1.2 History of SEM Global Marketplace Global events like Wimbledon, the Tour de France, FIFA World Cup, Olympic Games, the Iditarod and Cannes Film Festival attract world-wide attention, providing an exceptional marketing opportunity for ticket sales, sponsorship sales, licensing and merchandise opportunities and provide a major economic impact for host cities Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Global Marketplace In 2010, ESPN, CANAL + Events and Tignes Ski & Snowboard Resort (in France) launched the first Winter X Games to be held outside the United States, and X Games Munich 2013 demonstrated the growth in global appeal of the event when 47.5 hours of action were broadcast across ESPN’s various platforms, including 26.5 hours on live television Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Global Marketplace The global demand for footwear and sports apparel continues to grow with international brands like China’s Li Ning and Germany’s Adidas and Puma fiercely competing with American brands like Nike and Under Armour for market share Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Global Marketplace A number of NBA stars have recently either opted out of relationships with American brands to pursue deals with Chinese sportswear brands or recently signed contracts to endorse brands, including Dwyane Wade who left Jordan Brand for Li-Ning last year, Klay Thompson who has his own signature shoe (the “KT FIRE”) with Anta, and Kevin Love wears a new Chinese shoe brand, 361 Degrees Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Global Marketplace Prominent american sport are making a push to expand their presence overseas by hosting regular season games (not exhibition games) outside of the United States Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Global Marketplace In the NBA season, two regular season games were played internationally, one in Mexico City between the Houston Rockets and Minnesota Timberwolves, and one in London between the Milwaukee Bucks and New York Knicks at The O2 Copyright © 2014 by Sports Career Consulting, LLC 44

Signs of Continued Industry Growth
LESSON 1.2 History of SEM Signs of Continued Industry Growth The worldwide video game industry is poised to exceed $90 billion in 2015, thanks to the combined growth of console, portable, PC, and online video games, according to a story published on inc.com Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Streaming music services continue to grow with Pandora leading the way with 77 million active users (the service actually has over 250,000 registered users) while both Spotify and iHeartRadio report having more than 60 million active users Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth The global theme parks market is projected to reach $31.8 billion by 2017, according to a report by Global Industry Analysts, Inc. According to Transparency Market Research, the global footwear market is expected to reach $211.5 billion by 2018 For the first time in history, ebook sales generated more revenue than hardcover books in 2012 while overall ebook sales have increased 4,456% since 2008 Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth In 1994, Nike’s soccer brand revenues were $40 million. In 2014, the company reported soccer revenues of more than $2 billion (adidas’ soccer division also surpassed $2.7 billion in sales). Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth NFL media fees are projected to double to $8 billion annually by the end of the decade According to a story published on SBNation, the NBA generated nearly $5 billion in basketball-related income for the season Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Centerplate, the leading hospitality partner to North America's premier sports, convention and entertainment venues, is now also the fastest growing restaurant chain in America, according to Nation's Restaurant News. Centerplate serves over 115 million guests per year. Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Television audiences continue to grow in size while sports and entertainment properties expand the various means for distributing content (social media, streaming etc) The 2015 NBA Finals on ABC between the Miami Heat and San Antonio Spurs was broadcast in 215 countries and 47 languages Copyright © 2014 by Sports Career Consulting, LLC

The NBA continues to be a leader in embracing social media surpassing 400 million likes and followers combined across all league, team and player pages on Facebook, Twitter, Instagram, Sina and Tencent. The NBA was the first professional sports league to exceed one billion videos viewed on its YouTube channel and now has more than 1.3 billion videos viewed overall (according to nba.com). LESSON 1.2 History of SEM . Signs of Continued Industry Growth The 2015 NBA Finals on ABC between the Cavs and Warriors was broadcast in 215 countries and 47 languages and averaged nearly 20 million viewers, the highest number of viewers for a NBA Finals since Michael Jordan retired from the Chicago Bulls (the 2014 Finals averaged 15.5 million viewers) Copyright © 2014 by Sports Career Consulting, LLC

The NBA continues to be a leader in embracing social media surpassing 400 million likes and followers combined across all league, team and player pages on Facebook, Twitter, Instagram, Sina and Tencent. The NBA was the first professional sports league to exceed one billion videos viewed on its YouTube channel and now has more than 1.3 billion videos viewed overall (according to nba.com). LESSON 1.2 History of SEM . Signs of Continued Industry Growth The NBA continues to be a leader in embracing social media surpassing 400 million likes and followers combined across all league, team and player pages on Facebook, Twitter, Instagram, Sina and Tencent. The NBA was the first professional sports league to exceed one billion videos viewed on its YouTube channel and now has more than 1.3 billion videos viewed overall (according to nba.com). Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth The 2015 FIFA Women’s World Cup Final (between the United States and Japan), amid rampant accusations and arrests tied to corruption with soccer’s global governing body, generated the biggest audience ever for a soccer game on Fox with over 20 million viewers Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth The value of major league sport franchises continues to grow at a furious pace. In 1973, the late George Steinbrenner bought the New York Yankees for just under $9 million. In 2015, Forbes magazine valued the historic franchise at $3.2 billion (click here to view the entire list of MLB franchise valuations). According to Forbes, the average Major League Soccer franchise is now worth over $100 million, an increase of more than 175% over the last five years Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Fandom is a term used to refer to a subculture composed of fans characterized by a feeling of sympathy and camaraderie with others who share a common interest Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth ESPN’s annual “SportsNation Survey” found that a whopping 90% of male respondents claimed to be sports fans on some level Over 50% of respondents claimed to more of a sports fan than they were five years ago 58% of respondents would prefer to receive free season tickets to their favorite sports team than be promoted at work. 40% of those participating in the 2012 SportsNation Survey said they had traveled 250 miles or more to attend a sporting event Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Fans have, in a limited number of occasions, successfully organized on behalf of a cancelled television series to lobby networks to bring back their favorite show (examples include Chuck in 2010 and Community in 2012 while prompting Netflix to resurrect cult hit series Arrested Development) Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth The intensity levels of fandom vary, ranging from a casual sports fan who might take in one NBA game per year to those fans that put the “fan” in “fanatic” (and otherwise engage in behavior that other fans might otherwise find to be irrational) Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Fans who go to extremes to show their loyalty to their favorite team, band, actor or other celebrity are often referred to as “superfans” Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Self-proclaimed Clippers fan “Clipper Darrell” spent $12,000 customizing his BMW to reflect his love for the Los Angeles Clippers (complete with the license plate “CLIPERD”) Darrell has gone so far as to have his own personal dedicated website Because Clipper Darrell began charging people for public appearances, the Clippers franchise asked that he disassociate himself with the team in They would later sort the issue out and Darrell returned to his regular seats. Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth A Washington Redskins superfan who goes by the nickname “RG3 Woman” dresses up in a gold bodysuit at home games to cheer on her favorite player Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth In 2013, an Alabama football superfan passed away at the age of 91 but had attended 781 straight games Also in 2013, a lifelong Cleveland Browns superfan passed away (his family even encouraged everyone attending his funeral wear clothes supporting the team) but requested that the pallbearers be Cleveland Browns players, stating: "He respectfully requests six Cleveland Browns pall bearers so the Browns can let him down one last time." Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Fandom explains why people propose at sporting events or feature a themed wedding centered on their favorite sports team Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth The Green Bay Packers have 360,760 “shareholders” who own “stock” that have no value and cannot be traded (not to mention a waiting list of 115,000 more fans waiting for the chance to buy more shares when they become available again) Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth On opening night, Activision says that approximately 1.5 million gamers lined up outside 13,000 stores to buy a copy of Modern Warfare 3 at midnight USA Today published a story suggesting the number of people calling in to work sick the day after Call of Duty is release results in a significant increase University of Kentucky fans paid between $7,500 to $12,500 for the opportunity to attend a basketball camp (called John Calipari Basketball Fantasy Experience) and “essentially experience what it’s like to be a Kentucky basketball player” Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth The existence of fandom is what ultimately fuels today’s non-stop, around the clock media coverage of celebrities and sports stars and drives a culture in which athletes and celebrities are often quickly forgiven for highly publicized transgressions when they perform Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth After his immense popularity quickly dissipated upon the revealing of a “girlfriend hoax”, Notre Dame football star Manti T’eo was named by Forbes as one of the most disliked athletes in the U.S. Yet after earning a starting position with the San Diego Chargers, his jersey was among the top selling among rookies in 2013 Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth While many media pundits publicly chastised LeBron James’ decision to announce which team he would be joining in a one hour ESPN special, the show (aptly named “The Decision”) drew very high ratings as nearly 10 million people tuned in to watch Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Despite all the scrutiny surrounding singer Chris Brown (including his widely publicized assault of then-girlfriend Rihanna, a disturbance in a nightclub with rapper Drake, and poor album reviews), his 2013 release of “Fortune” managed to debut at the top of the Billboard 200 chart Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth After an ugly divorce between the Green Bay Packers and its former star quarterback, Brett Favre was booed loudly when he returned to Lambeau Field in an opposing jersey. Fast forward to the summer of 2015 when 67,000 tickets to watch his Packer Hall-of-Fame induction sold out in in an hour and a half (and he received a 4 minute standing ovation from the crowd when he came onto the field). Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Because of the strong emotional connection fans maintain with their favorite sports teams, wins and losses on the grandest of stages can yield incredible influence (both positive and negative) on a community at large Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth After struggling with one of the worst national disasters in US history (Hurricane Katrina), fans in the New Orleans area often cited the New Orleans Saints Super Bowl win as an inspiration for the city’s resurrection Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Representing their country just four months after a devastating tsunami rocked Japan, their women’s soccer team pulled off one of the greatest upsets in sports history by defeating the heavily favored Germans in the 2011 World Cup and, ultimately, beating the United States in the championship game. “Our playing is to be an encouragement for the victims of the disaster,” said Coach Norio Sasaki after the monumental victory while the headline in the New York Times the following day read: “A Resilient Team Soothes a Nation.” Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth On the flip side, after losing in extra time in the World Cup final to Germany, a large crowd of Argentinian fans turned violent and destructive, including setting fires and rioting, a scene which required police intervention and many arrests to contain Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Fandom can, unfortunately, also result in an unhealthy (and potentially dangerous) subculture of fans that become too emotionally invested and obsessive with their favorite sports teams or celebrities. In 2014, a homeless man was arrested after allegedly stalking Rihanna, sending threatening letters and even appearing at her home on more than one occasion Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth After being knocked out of the 2013 NBA Playoffs, Chicago Bulls fans who were disappointed that star point guard Derrick Rose was unable to play that season due to injury took to Twitter to voice their displeasure. Moments after the team lost, #DerrickRoseMoreUselessThan started trending nationally on Twitter. Copyright © 2014 by Sports Career Consulting, LLC 79

LESSON 1.2 History of SEM Signs of Continued Industry Growth After a highly recruited football player made the decision to attend Alabama over Auburn, the recruit told rivals.com that "Someone actually put out an article about my family's business telling all Auburn fans not to go there. We are going to eventually start losing money. People are telling restaurants in the town not to serve us. Social media has definitely been the worst. People on Instagram are telling me how they hope I tear my ACL in game one. They will laugh when I do. They are saying my family is horrible and how they didn't raise me right. It's just crazy.” Copyright © 2014 by Sports Career Consulting, LLC

LESSON 1.2 History of SEM Signs of Continued Industry Growth Because of the high levels of loyalty created by fandom, companies often create marketing strategies that try to connect their brands with fans (consumers) Copyright © 2014 by Sports Career Consulting, LLC

Factors Contributing to Industry Growth

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