Two Circles
Sports marketing agency Two Circles has released a new report that estimates global sports IP owners -- mainly comprised of federations, leagues, teams, events and athletes (for off-field earnings) -- last year generated $159B in revenue, and it projects that figure will rise to $260B by 2033. That represents a 64% increase and a compound annual growth rate of 5% across the next decade. The agency makes the case that the continued growth will be supported by three key trends: a continually expanding base of sports fans, a diversification of sports offerings that will provide those fans new and more frequent touchpoints, and an increased ability for IP owners to maximize their share of consumer spending through both B2B and direct-to-consumer channels. The report stresses the importance of fan focus and advises Two Circles clients that “IP owners who put their diverse set of fans first, and deliver diverse sets of experiences, will thrive in the decade to come.” Other takeaways include:
- The industry’s 20 biggest IP owners generated 39% of last year’s $159B revenue total. The NFL tops the list with a 7% of market share and is followed by the Hong Kong Jockey Club (3.9%), UEFA (3.9%), FIFA (3.6%) and the Premier League (2.5%). Soccer properties were responsible for 34% of the total revenue generated by IP owners, followed by football (12%), basketball (8%) and baseball (7%).
- Collegiate sports were highlighted as a particularly frothy segment, with revenues expected to rise by 130% over the next decade. Two Circles specifically pointed to the exploding popularity of women’s sports and the continued growth of the College Football Playoff, which it expects will eventually expand to 16 teams while introducing new ticketing and hospitality options.
- Two Circles identified common traits among the most successful IP owners, including aggregated rights, historic importance, diversified experiences and a large sport fanbase. Using that rubric, the agency suggested the hypothetical properties most likely to reach $1B in annual revenue by 2033 would be confederated leagues in kabaddi, track and field, and South American soccer.
