How Are the Rising Sports Markets Changing the Global Picture?

Sports markets are massive revenue generators in today’s society, with entertainment and celebrity combining to achieve record global audiences. Social media has played a big part in transforming stars into global icons, while online access has facilitated global sports broadcasting.

Direct revenue streams for sports leagues and franchises have benefited exponentially, while symbiotic relationships have helped growth across a variety of markets.

Sports Betting

The sports betting market generates billions for operators every year, with local governments also benefiting from tax revenue. The US sports industry got a massive boost when the 1992 PASPA (Professional and Amateur Sports Protection Act) was repealed by the Supreme Court in 2018. Under the PASPA, sports betting was prohibited in all states apart from Nevada, with the exception of sports lotteries in Montana, Oregon, and Delaware.

After the Supreme Court overturned the original legislation, states were granted permission to determine their own regulations, with many choosing to legalize retail and online sports betting facilities. Of the 38 states that allow sports betting, 30 have licensed online operations.

Consumers in states without legal sports betting can explore offshore alternatives, and gambling expert Jovan Milenkovic explains how this benefits consumers. Insights published on Adventure Gamers reveal that offshore sportsbooks can be legally accessed by US bettors, with some of the top options licensed in jurisdictions like Comoros and Curacao.

These sites typically have competitive odds and enticing bonuses to attract new players, with a wide variety of global sports markets to bet on. The global sports betting market has a projected compound annual growth rate of 5.3% between 2025 and 2029, resulting in a projected market volume of $94.89 in 2029.

Money generated via sports betting finds its way back into the sports industry through strategic partnerships and sponsorship deals, with shirt, stadium, and media advertising deals all benefiting both parties.

Sponsorship

The sponsorship generated through partnerships with gambling organisations generates billions for sports franchises and leagues, but it doesn’t stop there. All manner of partnerships are popping up, with sports teams having dedicated internet providers, crypto partners, food and drink vendors, and much more.

Many sports franchises have a strong reliance on sponsorship deals and player trading models to generate the revenue required to perform at the highest levels. Sponsorship deals can cover everything from shirt sponsorship, stadium naming rights, and adverts in matchday souvenir programs, to advertising boards and featured product placements.

Players can boost their own earnings by enjoying sponsorship deals for equipment and clothing, or they can appear as brand ambassadors to improve the profile of brands.

Merchandising

Sport franchise merchandising is another massive revenue stream for all involved, with major sports brands working in partnership with teams to create team kits, training clothes, and other apparel.

The rising profile of major sports stars is also a big boost to this, with social media helping them gather massive followings that they can promote products to directly. This is nothing new in the world of sports, and the success of Michael Jordan’s signature sneaker sparked a boom in player deals.

Player image rights have become hotly contested assets that can be worth millions to the right buyer, and teams consider this during contract negotiations.

Major sportswear brands have enjoyed linkups with franchises, with Nike Air Jordan and French soccer team Paris Saint-Germain enjoying a lucrative collaboration that has seen a variety of sportswear products being designed.

Major tournaments will also generate billions in sponsorship revenue, with the FIFA World Cup final welcoming more than a billion global viewers, and the Super Bowl is renowned for brands going all out to create one-off commercials for the event.

Media Rights

The top TV networks battle to win the rights to show the top fixtures from sports and leagues around the world, with some leagues splitting coverage across domestic and international markets.

Online streaming is helping to transform how we consume sports, and many sports franchises operate their own channels that bring fans the latest news, highlights, and live coverage. In some cases, live domestic streaming is not permitted as leagues will already have TV deals in place, but international markets are typically fair game.

Such is the importance of TV audiences and the ability to generate advertising revenue, that international tournaments are often worked in a way that best suits global audiences.

Other Industries and Businesses that Benefit from a Growing Sports Market

The success of the sports industry and those directly impacted by it also has a knock-on effect. Cities hosting major tournaments and fixtures will record a boom in hospitality, with fans eating, drinking, and booking into hotels. The travel and transport industries also see a boost from this, as will other retailers and services nearby.

Similarly, merchandising doesn’t simply benefit the clubs and brand partners, but has an impact on everyone, from the textile producers to logistics companies tasked with getting items from A to B.

Conclusion

The growth of the sports market impacts all walks of life, from retail and entertainment to fashion, gambling, and travel. Major international sporting tournaments help to spike interest in different sports, while regular season fixtures maintain a steady interest.

As brands and sports franchises continue to pour time, effort, and a lot of money into content creation across social media and other digital platforms, their reach is likely to grow for the foreseeable future.