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Sports are big business across the world. The recent agreement to sell the Los Angeles Clippers, of the NBA, for $2 billion is the largest amount paid for a sports franchise in the history of the United States. Across the world things are no different. In 2012, for the first time, a sports franchise issued an IPO and went public. Manchester United, an English soccer club, currently holds a $2.75 billion market cap, making it one of the most valuable sports franchises.
The value of the team itself is not the only economic force at play. Sporting events are widely attended and have a very faithful clientele. Along with the chance to showcase one’s country, hosting events such as the Olympics or the World Cup can be economically fruitful. The recent Olympic games in Sochi cost north of $50 billion, even with a good portion of the money going to corrupt partners, a lot of money was pumped into the economy to build the infrastructure needed. The same is taking place for the World Cup in Brazil. The country has pumped almost $26 billion into the economy through infrastructure projects and updates. Events like these attract the attention of the entire world, and for a short period of time resemble a functioning economy. Visitors to the games support a network of economic activity, from where they find lodging to the food they eat. This support is what has enabled athletes to become multimillionaires and world famous.
Regardless of what sport one area of the world may enjoy more than another, there will always be competition that people are willing to pay big money to support. Fans are what keep the engine of sports clubs running and are the driving force behind an organization's financial success - or failure. The former is usually a result of on the field success by the respective sports club. So to maximize earnings in this world of sport—win.
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