Study Finds That North American Sports Market Will Grow To $67.7B By '17

The North American sports market will grow at a compound annual rate of 4.8% through ’17 across gate revenues, media rights, sponsorship and merchandising, according to a recent report from PricewaterhouseCoopers. The four segments analyzed by PwC will grow from $53.6B in ’12 to $67.7B in ’17. Gate revenues are projected to be the largest segment in North America at a projected $19.1B in ’17, but a higher rate of growth is projected over the five-year period in the media rights and sponsorship segments. New media and sponsorship inventory, as well as higher valuations of sports content by media companies and advertisers, are seen as key drivers closing the gap across the three segments. A variety of factors will impact the gate revenues segment’s ability to keep pace in at least the short term, including the current cycle of new facility construction across pro sports and college sports nearing completion and major league expansion (outside of MLS) being unlikely (PwC)