The latest edition of the PwC Sports Survey examines the various challenges for the sports industry on the way towards achieving a sustainable recovery
Average market growth is expected to remain stable at 4.9% for the next 3-5 years
More than 80% of industry executives see the shifting media landscape and growing expectations for the role of sport in society as the sector’s key market forces
Nearly 60% of football executives believe that sports organisations should focus primarily on controlling costs rather than increasing revenues
63% of industry executives feel that reduced exclusivity and increased number of buyers per territory will lead to an increased value of media rights
Zurich, 21 September 2021 – PwC's new Sports Survey 2021 "Ready for Recovery?" polls nearly 800 sports industry executives from around the world on the current and future state of the sports industry. Amidst the uncertainties of the global pandemic, the study specifically covers the growing societal challenges facing the industry, the key areas of transformation for sports organisations as well as the redesign of commercial models.
Media transformation and the growing role of sport in society are driving change
In the past 3-5 years average global market growth has remained stable at 4.9%, and is predicted to stay consistent for the next 3-5 years. While respondents expect a strong increase in the Americas, Asia and Africa, growth in Europe, Australasia and the Middle East is forecast to decline. Interestingly, brands, sponsors and media companies are less optimistic than event owners or sports federations. According to respondents, the transforming media landscape is the main driver of change in the industry, followed by growing expectations of the role of sport in society.
Fans are urging sports organisations to act more sustainably
For sports organisations, the risk of losing the trust of fans has become the main reason for investing in social and environmental sustainability ahead of the need to meet the expectations of sponsors and investors. Fans are demanding a clear stance on social and environmental issues, also from the athletes themselves. Female athletes in particular are increasingly using their platforms to draw attention to social and political issues. While most rights owners have largely been undertaking social initiatives in an ad-hoc manner, survey results show that sports organisations are increasingly addressing sustainability alongside their broader strategic issues. To achieve financial sustainability, sports executives have traditionally concentrated on growing revenue. Surprisingly, slightly over 40% of respondents believe that the focus should be on controlling costs. In the football/soccer industry the proportion is even higher, rising to almost 60%.
The risk of taking on too much at once
Sport organisations are strained by the continuous launch of new leisure offerings and the more varied expectations of brands and media companies, which accentuates the need for transformation. While it is crucial for sports organisations to diversify beyond events, some have stated their wish to become publishing, entertainment or even technology companies. David Dellea, Head of PwC Sports Business Advisory explains: “There is a risk that sports organisations may lose focus. A coherent strategy is increasingly important to prevent them from becoming merely good enough at everything, while mastering nothing.” As sports organisations are increasingly turning to private equity to fund their transformation, most executives agree that investors have a real impact on growth. However, 73% are concerned that they are distracting sport away from its historic values.
Evolving expectations from fans and partners are shaping a liquid market
As shifts in fan habits and a transition towards streaming accelerate, the media landscape is moving from fragmented to fractured, pushing rights licensors to relax exclusivity while exploring various distribution models. Survey results also show that sports organisations need to catch up with the commercial use of fan data in order to provide their commercial partners with modular, targeted marketing propositions. To date, more than 70% of sports executives perceive the commercial success of fan data as disappointing or below expectations. Beyond OTT (Over-the-top media service) and NFTs (non-fungible token), the combination of content and data assets also expands the opportunities for direct-to-fan monetisation. In general, all market dynamics are heading towards an unprecedented level of liquidity. This is bound to encourage sports organisations to take more entrepreneurial risks.
About this survey
The sixth edition of the PwC sports survey “Ready for Recovery?” was conducted by the PwC Sports Advisory team between June and August 2021 through an online questionnaire distributed to sports industry leaders occupying C-level/senior positions. In total, 792 respondents across 55 countries have completed the survey. The analysis in this report is primarily based on the collective opinion of the respondents. It is completed by data provided to PwC by Facebook, Videocities, IRIS Intelligent Research in Sponsorship, HYPE Sports Innovation and Parrot Analytics as well as PwC Sports Advisory team’s knowledge, research and views about the industry.
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The entire study can be downloaded as a PDF document here: https://www.pwc.ch/sports-survey
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