Sports administrations are expected to benefit from broadcast rights deals as live sport becomes increasingly important to TV channels. For this reason, industry research firm IBISWorld has updated its report on the Sports sector in Australia.
The Sports sector is made up of a wide variety of entities that are all driven largely by the widespread popularity of sport within Australia. While a decrease in discretionary spending caused a small revenue decline during the global financial crisis, the sector has grown strongly over the past five years. Sports administrations in particular have grown at a rapid rate due to the surging value of new broadcast rights deals for the AFL, NRL and Cricket Australia. According to IBISWorld industry analyst David Whytcross, “revenue from broadcast rights has also flowed through to professional sports clubs, although there has been little increase in spending on independent sports instructors, which rely on strong economic conditions.” Coupled with consistent growth from sports facilities, sports social clubs and sports betting agencies, sector revenue is forecast to rise by a compound annual rate of 3.2% over the five years through 2013-14. Revenue is expected to increase by 2.6% in 2013-14, to reach $14.6 billion.
The AFL's broadcast rights deal grew in value partly due to its expansion into the Gold Coast and western Sydney, as competition between Australian Rules football and other codes like Rugby League intensified. Sports clubs throughout the sector have had to generate revenue from other sources, such as their social club operations. “The popularity of gaming machines has resulted in consistent growth for social clubs, while TAB outlets and other online sports betting agencies have grown in line with increased internet and smartphone use,” says Whytcross. The Sports sector has a low level of market share concentration, with no major players.
Gambling operations are expected to be hindered by increasing government regulation over the next five years, as authorities aim to prevent problem gamblers from piling up their losses. Increasing regulation within pokies venues and on sports betting agencies has the potential to limit revenue growth. However, sports administrations are expected to be bolstered by further growth in broadcast rights deals, as TV channels find live sport increasingly valuable because consumers have to watch it live, rather than online and on-demand.
For more information, visit IBISWorld’s Sports Australia industry report page.
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IBISWorld industry Report Key Topics
Businesses involved in this sector are involved in sports administration, instruction, club operation, betting or associated revenue generation activities such as social club facilities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visithttp://www.ibisworld.com.au or call (03) 9655 3886.