2023-03-27-德勤-2023年体育行业展望_12页_8mb

2023 Sports Industry Outlook Summary

Core Content

2023 is expected to be a pivotal year for the global sports industry, marked by significant opportunities and challenges. The year will see sports organizations and athletes leveraging new technologies, managing risks in a maturing betting market, and exploring new investment avenues. Additionally, women's professional sports are poised for growth, while college athletics in the United States undergoes transformative changes due to increased revenue and professionalization.

Main Points

1. Virtualization of Sports

• Digital Assets: Sports organizations are increasingly using NFTs, fan tokens, and blockchain-enabled tickets to enhance fan engagement and create new revenue streams.
• Partnerships: Major leagues like the NBA, MLB, and NFL are partnering with technology companies to develop NFT-based products and services.
• Utility: NFTs are moving beyond novelty to offer real utility, such as ticketing, loyalty programs, and access to exclusive content.
• Challenges: The market still faces barriers, including a lack of understanding, risk concerns, and sustainability issues. Sports organizations must make NFTs accessible and meaningful for fans.

2. Tackling Risks in Sports Betting

• Growth in the US: Sports betting has grown rapidly since 2018, with over 31 states legalizing it and more than $42 billion in bets placed in the first half of 2022.
• Societal Concerns: Issues such as corruption, addiction, and financial crime are prompting stricter regulations and advertising restrictions.
• Global Examples: Countries like Italy, Belgium, and the UK have implemented advertising bans or restrictions targeting minors and problem gamblers.
• Future Outlook: The US may adopt similar measures. Operators are encouraged to focus on responsible practices and long-term health.

3. Private Equity in Sports

• Investment Trends: PE firms are increasingly investing in sports, with notable deals in European football and US leagues.
• Regulatory Environment: In the US, the NFL prohibits PE investment, but the NBA, MLB, NHL, and MLS have more open policies.
• Drivers: PE is attracted by the value of media rights, new betting markets, and potential global expansion.
• Risks and Opportunities: PE involvement raises concerns about prioritizing profit over performance. However, it also brings new investment and support in areas like digital experiences and data analytics.

4. The Next Win for Women's Professional Sports

• Record-Breaking Year: 2022 was a breakthrough for women's sports, with record attendance, viewership, and investment.
• 2023 Prospects: The FIFA Women's World Cup in Australia and New Zealand is expected to surpass expectations. The new UEFA Women's Nations League will provide more exposure.
• Growth Challenges: Women's leagues still receive less attention, investment, and sponsorship than men's. Strategies to increase awareness and media rights valuations are essential.
• Opportunities: Greater involvement from female investors and former athletes, along with expanded betting options, could help drive growth.

5. New Possibilities from College Athletics Professionalization

• Revenue Growth: College football's revenue has surged, leading to changes in conference realignment and media rights deals.
• NIL and Transfer Portal: Athletes can now profit from their name, image, and likeness (NIL), creating a more fluid and competitive market.
• Professionalization: Conferences are becoming more professional, with new governance models and more sophisticated operations.
• Responsibility: With increased freedom, there is a need for better support for athletes, including mental and physical health, and managing the complex commercial environment.

Key Strategic Questions

• NFT Strategy: Should sports organizations focus on specific benefits or broad utility for fans?
• Fan Engagement: How can NFTs and digital experiences drive fan loyalty differently than traditional methods?
• Interoperability: How can innovation and interoperability be encouraged across platforms?
• Risk Management: How can operators balance economic opportunity with consumer protection?
• Advertising Restrictions: Will these measures effectively discourage underage and problem gamblers?
• Global Standards: Will there be increased collaboration and global standards for sports betting?
• PE Impact: What happens when the market becomes saturated? How will PE activity change during an economic downturn?
• Governance Models: What will the future governance model for college athletics look like?
• Equity in Sports: How can equity be ensured across different sports in the context of increased professionalization?
• Media Rights: What is the best mix of media channels to drive awareness and engagement for women's sports?
• Sponsorship Awareness: How can women's leagues increase awareness of their sponsors?
• Conference Consolidation: Will the pushback against major conference consolidation be successful?

Signposts for the Future

• M&A in NFT Market: Consolidation could shape the future of NFT use in sports.
• Crypto Failures: The fallout from crypto-related issues may impact sports sponsorship and betting.
• Women's Sports Media Deals: Unique approaches in media rights could drive growth.
• FIFA Women's World Cup: Ratings and attendance will be a key indicator of future success.
• Advertising Restrictions: Additional country-level restrictions may influence the industry.
• PE Activity: Changes in PE involvement during an economic downturn could be significant.
• Governance Changes: New governance structures may emerge to manage college athletics.
• Strategic Partnerships: Continued integration of technology, sports, and media will be a trend.

Conclusion

2023 will be a year of both opportunity and risk for the sports industry. Organizations must navigate the integration of digital technologies, manage the evolving betting landscape, and address the growing role of private equity. Women's professional sports are gaining momentum, and college athletics are undergoing a transformation that will shape the future of the industry. The key to success will be balancing innovation with responsibility, and ensuring long-term sustainability and growth.