2023年体育行业展望

2023

spor

tsindustr

y

outlook2023

sports

industry

outlookContentsThevirtualization

of

sports:

From

noveltytoutilityTacklingrisks

in

a

maturingsports

bettingmarketPrivate

equityandsports:

TeamingforthelongtermThenextwin

forwomen’sprofessionalsportsNewpossibilities

from

theprofessionalizationof

college

athleticsSignposts

forthefuture456789About

Deloitte’s

outlooksDeloitte’s

2023outlook

forthe

sports

industry

seeks

toidentify

the

strategic

issuessports

organizationsshouldconsiderinthe

comingyearandtheirimpacts,

aswellascriticalquestionstoaskandkeyactions

totake.The

goalistoequipsports

organizationswith

the

informationthey

needtohelppositionthemselvesforastrong,

resilientfuture.22023

sports

industry

outlookExecutive

summar

yIn

this

global

golden

age

ofsports,

2023is

expected

to

bring

organizations

andathletes

more

chances

than

ever

to

deeplyconnectwith

their

fans.Here

is

our

2023

outlook

in

brief:•

The

blending

of

physical

and

digital

experiences

will

movefrom

proving

concepts

tocreating

new

functionality

and

betterexperiences.•

With

the

possibility

of

new

sports

betting

restrictions

emergingaround

the

world,

there

will

be

a

greater

emphasis

on

riskmanagement

and

responsibility

as

the

industry

seeks

more

growthand

profitability.This

includes

engaging

through

some

important

international

eventslike

the

Cricket

World

Cup

(India),

Rugby

World

Cup

(France),

andthe

FIFA

Women’s

World

Cup

(Australia

and

New

Zealand).

This

yearwill

also

see

new

media

deals

and

more

innovations

from

streamingproviders

as

their

influence

grows.

In

a

challenging

economicenvironment,

sports

will

likely

still

be

seen

as

an

attractive

optionfor

investment,

with

investors

endeavoring

totake

a

responsibleand

sustainable

approach.

Technology

will

continue

to

infuseevery

aspect

of

sports,

empowering

athletes

and

creating

a

moreimmersive

experience

for

fans

at

live

events

and

at

home.

Ingeneral,

2023

will

be

about

making

the

most

of

these

near-termopportunities

while

managing

associated

risks

with

the

longer

termin

mind.•

Interest

and

involvement

by

private

equity

investment

in

sports

willcontinue

togrow.

How

will

sports

organizations

respond

tonewtypes

of

investors

and

their

expectations?

How

will

investors

actduring

a

potential

economic

downturn?•

After

a

breakthrough

year,women’s

professional

sports

are

in

astrong

position

tofurther

advance

in

2023,

but

additional

work

isnecessary

toimprove

awareness,

expand

sponsorship,

and

growmedia

rights

valuations

and

investment.•

College

athletics

in

the

United

States

are

undergoing

unparalleledchange.

It

will

be

a

challenge

tobalance

the

extraordinaryopportunity

with

responsibility

to

student-athletes,

schools,

fans,partners,

and

alumni.32023

sports

industry

outlookThe

virtualization

of

spor

ts:From

novelty

to

utilityThe

use

of

digital

assets

such

as

non-fungible

tokens

(NFTs),

fantokens,

and

blockchain-enabled

tickets

are

evolving

for

sports.

Manymajor

sports

organizations

across

the

world

are

working

with

partnersto

build

markets

in

these

areas.

Simple

digital

collectibles,

originallyseen

as

curiosities,

are

becoming

advanced

digital

assets

that

can

beused

to

improve

fan

engagement

and

loyalty

and

create

new

businessmodels

and

even

more

new

revenue

streams.

In

the

coming

year,expect

to

see

major

strides

for

these

assets.NFTs

in

sports

will

need

to

overcome

some

barriers—and

quickly—to

progress

rapidly.

For

many

fans,

the

barriers

to

entry

can

seemhigh,

mainly

because

of

a

general

lack

of

understanding

of

whatNFTs

are

and

how

they

work.

There

are

also

worries

about

risksand

immaturity

in

the

market

and

the

sustainability

of

the

services.6Sports

organizations

and

their

technology

partners

should

considermaking

it

as

easy

as

possible

for

the

average

fan

to

set

up

a

walletand

purchase

digital

assets.

These

challenges

will

likely

have

to

beaddressed

if

sports

organizations

want

new

revenue

sources,

betterfan

engagement,

and

more

knowledge

of

their

audience.The

broader

NFT

market

has

softened,

with

overall

sales

and

activityseeing

a

significant

decline

in

2022.

However,

the

sports

market1naturally

lends

itself

to

the

“collector’s

mindset”

and

athletes,

teams,and

leagues

are

continuing

to

look

at

how

to

best

leverage

theseassets

to

drive

fan

engagement.

Many

leagues

and

organizations

haveformed

partnerships

in

this

space,

some

with

multiple

technologyand

entertainment

companies,

for

different

products.

Sorare

haspartnered

with

the

National

Basketball

Association

(NBA),

MajorLeague

Baseball

(MLB),

Major

League

Soccer

(MLS),

Bundesliga,LaLiga,

and

other

football

(soccer)

leagues

for

their

NFT-based

fantasyStrategic

questions

to

consider:•

Should

sports

organizations

base

their

NFTstrategy

on

specific

benefits,

or

broad

utilityfor

fans?

Which

approach

is

most

likely

to

driverapid

growth

for

the

market?games.2FIFA

launched

FIFA+

Collect

with

partner

Algorand

to

provideThe

National•

How

can

these

offerings

drive

fan

loyalty

indifferent

ways

than

traditional

activities?a

platform

for

World

Cup–related

digital

collectibles.3Football

League

(NFL)

is

working

with

Mythical

Games

on

NFL

Rivals,a

blockchain-based

mobile

game;

Ticketmaster

on

commemorativeNFT

tickets;

DraftKings

on

Reignmakers,

an

NFT-based

fantasy

sports•

How

can

sports

organizations

encourageinnovation

and

interoperability

acrossdisparate

platforms?game;

and

Dapper

Labs

on

NFL

All

Day,

an

NFT

marketplace.4•

How

can

existing

service

providers

innovatefast

enough

to

keep

up,

specifically

in

ticketingand

loyalty?Digital

collectibles,

and

their

potential

as

an

investment,

are

not

likelyto

drive

this

market

alone

in

the

long

term.

The

shift

toward

NFTsthat

can

provide

additional

utility,

functionality,

or

redeemability

tothe

owner

will

be

imperative.

This

could

include

NFT

ticketing,

whichis

beginning

to

see

use

for

music

concerts

and

is

being

discussedfor

international

sporting

events.

NFT

ticketing

can

reduce

fraud,5increase

transferability,

and

establish

a

live

and

eternal

link

betweenissuer

and

owner.

It

also

has

the

potential

to

drive

new

sources

ofrevenue

for

sports

organizations

through

secondary

sales.

The

key

isto

not

just

replace

something

physical

with

something

digital,

but

toconnect

and

leverage

the

two

to

create

new

value.

NFT

tickets

couldunlock

unique

benefits

for

fans,

like

access

to

real

and

virtual

eventswith

athletes,

privileges

in

venues,

voting

on

team/club

decisions,

andexclusive

access

to

unique

merchandise.42023

sports

industry

outlookTackling

risk

s

in

a

maturing

spor

tsbetting

marketAlthough

sports

betting

has

been

legal

in

some

countries

for

morethan

a

decade,

the

United

States

is

a

relative

newcomer,

having

onlyopened

the

door

more

broadly

to

legalization

in

2018.In

just

a

fewshort

years,

the

US

market

has

seen

rapid

growth,

with

some

typeof

sports

betting

legal

and

active

in

31states

and

more

than

US$42Strategic

questions

to

consider:•

What

is

the

best

model

to

deliver

the

rightbalance

of

economic

opportunity

andadequate

consumer

protection?billion

of

bets

placed

in

the

first

half

of

2022.7A

lot

of

positive

attention

has

been

given

to

the

increased

economicopportunity

and

fan

engagement

that

sports

betting

can

bring.However,

it

is

also

important

to

reflect

on

related

societal

issues,including

the

potential

for

corruption,

illegal

betting,

issues

with•

How

can

operators

best

focus

on

customeracquisition

and

retention

while

facing

thepotential

for

tighter

regulations

aroundmarketing

and

advertising?5addiction,

and

financial

crime.8As

the

US

market

matures

and

evolves,•

Will

increased

advertising

curbs

be

effective

inactively

fostering

a

healthy

customer

base

and

a

responsible

industryshould

be

encouraged.discouraging

underage

and

problem

gamblers?•

Will

there

be

an

increase

in

collaborationbetween

countries

and

the

establishment

ofglobal

standards

to

address

societal

issues?How

are

other

countries,

where

sports

betting

has

been

around

muchlonger,

dealing

with

these

issues?

Recent

efforts

have

concentrated

onadvertising,

especially

ads

targeted

to

minors

and

younger

gamblers.Some

countries

are

adding

additional

restrictions

to

current

laws

andregulations

that

dictate

when

and

where

sports

betting

advertisingcan

be

seen.

Italy

banned

all

gambling

ads

in

2018as

part

of

its“Dignity

Decree.”

Belgium

is

working

toward

banning

almost

all9gambling

advertisements.10

In

the

United

Kingdom,

the

Committeefor

Advertising

Practices

has

put

forward

new

rules

that

prohibit

anysports

betting

advertising

with

a

“strong

appeal”

to

young

people,even

if

meant

for

adults.11

In

Australia,

as

of

2023,

all

sports

bettingadvertising

will

have

to

use

a

rotating

list

of

seven

very

candid

taglinesto

discourage

problem

gamblers.12The

United

States

could

potentially

adopt

some

of

these

advertisingpractices

in

the

future.

Currently,

states

and

the

industry

are

drivinga

wide

assortment

of

risk

mitigation

efforts

around

public

education,employee

training,

advertising

restriction,

availability

of

problem-gambling

resources,

and

collaboration

and

research.13

Will

evenbroader

approaches

be

taken?

For

example,

a

microbetting

operatorrecently

banned

the

use

of

credit

cards

on

its

products

and

set

adeposit

limit

for

customers

ages

21

to

25.14

Promotional

inducementshave

been

barred

in

some

countries,

and

there

is

a

proposal

inSweden

to

expand

data

sharing

to

better

identify

problem

gamblers.15It

is

important

to

manage

potential

risks

in

this

space,

and

the

UnitedStates

may

be

able

to

learn

from

countries

with

more

experience.

Withconcerns

over

an

economic

downturn

in

2023

and

a

greater

focuson

profitability,

betting

operators

should

not

lose

sight

of

protectingand

supporting

their

customers.

How

can

betting

operators

workproactively

to

best

ensure

the

long-term

health

of

both

peopleand

the

industry?52023

sports

industry

outlookPrivate

equit

y

and

spor

ts:Teaming

for

the

long

termPrivate

equity

(PE)

has

taken

an

increasingly

active

role

in

sports

overthe

past

few

years—with

firms

establishing

funds

and

new

entitiesbeing

created

toinvest

solely

in

sports.

They

are

buying

shares

ofteams,

leagues,

and

broadcast

rights.

Nearly

US$60

billion

in

privateequity

was

invested

in

sports

in2021and

more

than

US$30

billionin

2022

through

August.16

In

Europe,

the

rules

are

fairly

relaxed

forPE

involvement.

In

the

United

States,

the

NFL

doesn’t

currently

allowPE

firms

toinvest,

but

the

NBA,

MLB,

National

Hockey

League

(NHL),and

MLS

have

encouraged

it,

with

guardrails.

These

can

includesetting

minimum

investment

levels,

controlling

the

individual

andtotal

percentages

that

PE

firms

and

other

institutional

investors

canown,

and

limiting

the

number

of

teams

a

single

firm

can

invest

in.17Strategic

questions

to

consider:•

What

happens

when

the

market

becomessaturated

and

there

are

fewer

“easy”

dealsto

make?•

What

are

the

consequences

for

sportsorganizations,

players,

and

fans

of

a

smallerpool

of

interconnected

global

owners?•

Will

PE

interest

drive

more

leagues

to

lookat

expansion?•

How

will

organizations

respond

tothe

expectations

that

come

withoutside

investment?So

why

all

the

interest?

PE

firms

see

growth

through

the

increasingvalue

of

media

rights,

new

sports

betting

markets,

and

for

someleagues,

possible

global

expansion.18

Finally,

PE

firms

want

reliablerevenue

streams

and

solid

return

on

investment—and

in

the

UnitedStates,

major

sports

leagues

generally

have

a

higher

rate

of

returnthan

the

S&P

500,

with

some

leagues

significantly

higher.19Notable

recent

deals

in

European

football

show

just

how

deep

PEinvolvement

has

become.

Chelsea

Football

Club

was

acquired

bya

consortium,

led

by

ToddBoehly,

chairman

and

CEO

of

Eldridge,and

Clearlake

Capital,

for

US$5.3

billion.20

RedBird

Capital

Partnerspurchased

AC

Milan

for

€1.2billion.21

In

a

distinctive

deal,

CVC

Capitalpaid

€2

billion

for

a

share

of

the

media

rights

revenue

of

LaLiga

forthe

next

50

years.22

And

the

action

isn’t

just

in

blockbuster

deals:Some

PE

firms

see

more

upside

in

smaller

teams

and

leagues,

likesecond-

and

third-division

European

football

teams,

Indian

cricketteams,

and

rugby

teams

and

competitions.23PE’s

entrenchment

in

the

sporting

landscape

brings

potential

issuestowatch

out

for

along

with

new

areas

of

opportunity.

Some

of

thesedeals

have

sparked

pushback.24

Fans

may

worry

that

investorscould

put

profit

above

winning,

and

athletes

may

ask

whetherinvestors

have

their

best

interests

at

heart.

If

economic

times

gettough

for

teams

and

leagues,

will

investors

try

toexert

more

controltoprotect

their

investment,

tothe

detriment

of

competitiveness?There

are

also

risks

tying

investment

toon-field

performance.

Forexample,

investors

in

second-tier

European

football

clubs

may

counton

reaping

significant

financial

benefits

from

getting

promoted

totop

leagues.

For

opportunities,

expect

tosee

more

attention

paidtosupporting

areas

for

the

sports

industry—digital

experiences,athlete

performance,

data

and

analytics,

and

sports

betting.

Alsoexpect

tosee

an

even

wider

variety

of

institutional

investors

gettinginvolved

in

sports,

including

sovereign

wealth

funds.2562023

sports

industry

outlookThe

next

win

for

women’sprofessional

spor

tsWomen’s

professional

sports

had

a

record-breaking

year

in

2022.The

levels

of

interest,

attendance,

viewership,

media

coverage,and

investment

have

never

been

higher.Attendance

recordswere

broken

around

the

world.

More

than

90,000

attended

amatch

between

Barcelona

and

Real

Madrid

in

the

UEFA

Women’sChampions

League.26

The

Women’s

Rugby

World

Cup

set

a

recordin

New

Zealand,

selling

out

Eden

Park

for

its

opener.27

The

2022Women’s

European

Championship

reported

more

than

360

milliontotal

viewers

for

its

tournament.28

In

the

United

States,

the

NationalWomen’s

Soccer

League

(NWSL)

had

almost

1

million

viewers

for

itsfirst

championship

game

in

prime

time,

and

the

Women’s

NationalBasketball

Association

(WNBA)

saw

its

regular-season

viewership

hitits

highest

point

in

14

years.29operators

could

provide

more

betting

options

for

women’s

leagues,potentially

driving

increased

interest.

Finally,

there

are

more

femaleinvestors

and

former

athletes

getting

involved

in

ownership.The

result

could

be

a

chance

todo

things

differently

with

athleterepresentation,

fan

and

community

engagement,

and

investment.36Strategic

questions

to

consider:•

What

are

the

best

ways

for

women’sleagues

to

seize

upon

current

momentumto

grow

beyond

core

fanbases?Women’s

professional

sports

are

positioned

toadvance

further

in2023.

Ticket

sales

for

the

FIFA

Women’s

World

Cup,

scheduled

toplay

out

in

Australia

and

New

Zealand

in

July

and

August,

are

alreadysurpassing

expectations.30

The

launch

of

the

new

UEFA

Women’sNations

League

after

the

World

Cup

will

offer

a

chance

for

even

moreexposure.31•

With

media

rights

in

play,

what

is

thebest

mix

of

entertainment

channels

thatwill

drive

the

most

awarenessand

engagement?•

How

can

the

excitement

and

attentionfrom

national

team

events

translate

tomore

consistent

support

for

professionaldomestic

leagues

and

clubs?Yet,

despite

all

this

laudable

momentum,

women’s

professionalsports

still

get

significantly

less

attention,

investment,

andsponsorship

than

men’s

sports.

What

will

it

take

todrive

women’sleagues

tothe

next

level?

How

can

the

cycle

of

investment,promotion,

excitement,

and

engagement

get

supercharged?•

How

can

more

global

collaborationbetween

women’s

professional

teams

andorganizations

help?Over

the

next

few

years,

some

critical

areas

can

help

catalyze

furthergrowth.

The

media

rights

deals

for

the

NWSL

and

WNBA

are

expiringsoon—the

NWSL

in

2023

and

the

WNBA

in

2025.

Both

leaguesare

looking

for

significant

increases

and

will

look

toa

combinationof

linear

and

streaming

providers

tomaximize

their

reach

anddiscoverability.32

These

deals

should

provide

proper

valuations,favorable

broadcasting

windows,

strong

production,

and

substantialmarketing

tohelp

drive

awareness.

The

leagues

could

learn

fromFIFA’s

recent

challenges

with

media

companies

underbidding

rightsfor

the

Women’s

World

Cup.33Women’s

leagues

have

many

other

opportunities

beyond

mediarights

todrive

future

success.

Although

innovative

approaches

arebeing

taken

tosponsor

women’s

sports,

mainstream

awareness

ofsponsors

is

still

low.

A

survey

of

US

sports

fans

revealed

that

74%couldn’t

name

any

sponsor

of

women’s

sports

leagues.34

Thereare

similar

gaps

reported

in

the

United

Kingdom.35

Additionally,the

smart

expansion

of

leagues

could

help

grow

talent

pools

andtap

new

markets.

As

sports

betting

matures

in

the

United

States,72023

sports

industry

outlookNew

possibilities

from

theprofessionalization

of

college

athleticsOver

the

past

few

years,

there

have

been

dramatic

shifts

and

anoverall

reshaping

of

the

US

college

athletics

landscape.

Many

ofthese

changes

have

been

sparked

by

accelerating

revenue

growthin

college

football.

Since

2021,athletes

have

been

allowed

toprofitfrom

their

name,

image,

and

likeness

(NIL),

and

some

have

secureddeals

in

excess

of

US$1million.37

The

realignment

of

athleticconferences,

highlighted

by

Texasand

Oklahoma’s

impending

movetothe

Southeastern

Conference

(SEC)

in

2025and

USC

and

UCLA’sproposed

move

tothe

Big

10

in

2024,has

disrupted

historicalprecedents.

The

College

Football

Playoff

plans

toexpand

to12teams

starting

with

the

2024–25season.38

More

money

will

flowinto

conferences

through

new

sports

rights

deals

for

the

Big

10(seven

years,

approximately

US$7

billion

for

2023–2030)

and

the

Big12

(six

years,

US$2.28

billion

for

2025–2031).39

The

Pac-12

will

soonbe

looking

for

a

new

deal

with

traditional

broadcasters,

streamingservice

providers,

or

both.40

These

shifts

are

pushing

conferences

tobecome

more

sophisticated

and

professional

in

their

operations.realignment,

alumni

and

donor

relations

will

be

even

more

critical,and

athletic

departments

will

need

new

ways

togather

insights

andnew

personalized

ways

toengage.In

this

dynamic

environment,

college

athletic

departments

don’thave

the

luxury

of

waiting

for

the

dust

tosettle.

It

is

critical

thatprograms

act

aggressively

and

creatively.

If

they

don’t,

they

could

risklosing

access

tonewly

emerging

revenue

streams—even,

potentially,those

they

currently

have.Strategic

questions

to

consider:•

What

will

the

governance

model

for

collegeathletics

ultimately

look

like,

and

what

will

thatmean

for

student-athletes?•

How

sustainable

are

the

new

models

for

NIL,In

2023,

college

athletics

will

continue

todeal

with

the

consequencesfrom

these

changes.

With

the

difficulties

in

interpretation

andenforcement

of

NIL,

abuses

in

the

system

have

become

so

severethat

athletic

conferences

have

asked

Congress

tocreate

nationalstandards.41

NIL

and

the

transfer

portal

have

given

athletic

boostersthe

power

tocreate

an

extremely

fluid

and

free

market,

leadingtohypercompetitive

recruiting

that

increasingly

requires

moreresources

from

athletic

departments.

Realignment

and

media

dealsare

exacerbating

financial

divides,

causing

some

topredict

the

Big

10and

SEC

will

separate

from

the

rest

of

the

Power

5

conferences.42

Inan

attempt

tomanage

this

upheaval,

there

have

been

calls

for

newgovernance

structures

for

college

athletics.43

Recommendationsfrom

the

National

Collegiate

Athletic

Association

(NCAA)

Division1

Transformation

Committee

and

a

new

NCAA

president

will

likelysignal

how

these

structures

may

catch

up

tothe

new

reality.44media

rights,

and

expanded

conferences?•

Considering

all

these

changes,

how

can

thehistorically

unique

characteristics

of

collegefootball

be

best

preserved?•

College

football’s

higher

revenues

and

increasingprofessionalization

will

likely

create

downstreamimpacts

on

the

rest

of

college

athletics.

What

is

thebest

way

to

ensure

equity

across

sports?It

is

difficult

topredict

the

future

of

college

athletics,

but

withincreasing

revenue

and

professionalization

comes

both

opportunityand

responsibility.

With

more

freedom

for

college

athletes,

it

isimportant

that

programs

take

a

more

unified

and

holistic

approachtoward

supporting

them—addressing

their

physical

and

mentalhealth

and

helping

tomanage

the

increasingly

complex

commercialenvironment

they

face.

To

drive

fan

engagement,

college

athleticsevents

could

become

even

more

digitally

mediated,

personalized,and

shared

across

a

connected

community,

for

those

both

in

thestands

and

viewing

at

home.

This

will

require

modernizing

the

digitalinfrastructure

of

venues

and

incorporating

real-time

data,

gaming,sports

betting,

social

content,

and

commerce.

With

conference82023

sports

industry

outlookSignposts

for

the

futureThe

growth

and

transformation

of

the

sports

industry

is

forcingorganizations

to

takeamore

sophisticated

approach—one

that

makes

theindustry

moreattractivefor

investors,more

immersive

for

fans,and

moresupportive

of

athletes.

To

make

sure

this

happens,

it

is

important

forsportsorganizations

to

look

ahead

for

signposts—possibleevents

and

actionsthat

can

change

how

the

future

unfolds.

Signposts

can

confirm

whatcould

transpire

or

create

an

entirely

new

path

with

its

own

opportunitiesand

challenges.For

2023,

consider

the

following:1.

M&A

activity

consolidating

t