globalEDGE Blog - By Tag: sports

As the world’s fourth most popular sport, tennis stands as a striking symbol of widespread appeal, beckoning millions of enthusiasts to courts and tournaments year-round. Major, or “Grand Slam,” tournaments, in particular, reel in millions of viewers and fans across various regions of the globe.

Over the years, sports betting has become one of people’s biggest hobbies as a possible source of partial income. In the United States, the industry made over 10.9 billion dollars in revenue in 2023, the highest it has ever been. Marking almost six years since the Professional and Amateur Sports Protection Act (PASPA) was passed, the act legalized entire sports betting, leading to a massive rise and benefits for the industry. With sports betting being an international phenomenon, various companies are merging worldwide to create a more extensive, robust network for people to watch sporting events.

This year's mild winter has significantly impacted Europe's ski resorts, where declining snow cover due to climate change is disrupting operations.

The Olympics need no introduction.

The UEFA Champions League is a well-known competition from around the world. It brings all the top soccer clubs together from the top European Leagues. Around 80 teams can compete in the 32-team group stage in its current format. The competition allows for great matchups that domestic leagues can’t. For the 2024/25 campaign, UEFA, the Union of European Football Associations, unanimously passed a new format for the league. While the changes might seem small to the average eye, the implications can benefit the current state of European football.

The countdown is on for Super Bowl XLVIII, and all eyes are on the Allegiant Stadium in Las Vegas, Nevada, where the San Francisco 49ers are gearing up to take on the defending champs, the Kansas City Chiefs. This 2022 rematch is scheduled for February 11, 2024, and this clash marks the 58th consecutive Super Bowl - a staple event that’s become engraved in American culture. The Super Bowl is not just a clash of titans on the field but a powerhouse of economic activity. With millions of dollars flowing in each year, it transforms the chosen host city into a focal point of notoriety and attention.

As the National Basketball Assocation, or NBA, continues to mark the beginning of its 78th season, it is interesting to consider the places the league is headed in terms of international attention. This NBA season sees a historic high of 125 international players on opening-night rosters, hailing from 40 different countries and regions across six continents. This season, the league expects to reach over 200 different countries and present their games in more than 50 separate languages.

The Women’s World Cup ended in late August, with Spain coming out victorious for the first time ever. Women were banned from playing football for years in many countries, who were fearful that women’s football would become more popular than men’s following the league’s suspension during World War 1.

The 87th edition of the Masters concluded two weeks ago. The Masters is one of four major golf tournaments each year and is known as one of the most prestigious tournaments in golf. The tournament started in 1934 and saw its 23rd international winner this year, with John Rahm from Spain receiving his first green jacket. Rahm is the first Spanish player to win the Masters since Sergio Garcia won in 2017. This Masters win is John Rahm’s second major and first major win since his 2021 win in the US Open. The total winnings purse from the masters was 18 million dollars this year, and with first place, John Rahm took home 3.24 million dollars with his masters win.

American Football and the National Football League is mainly known as American sport, but the National Football League (NFL) is trying to change that perception; and their efforts internationally are reaching an economic boom.

The world Baseball Classic starts at the beginning of March. It is a three-week baseball tournament, including teams from all over the world. The World Baseball Classic is similar to the world cup for Soccer, with teams playing in different groups. The top two teams from each group move on to the tournament. The tournament will occur in the United States (Arizona and Miami), Taiwan, and Japan, which is decided based on the country’s location.The World Baseball Classic happens every four years, but due to the COVID-19 pandemic, the Classic had to be postponed to 2023, but now, the economic boosts given to host countries is likely to occur once more.

Crypto gaming distinguishes itself from traditional gaming by providing gamers with a level of transparency that enables them to own the assets they earn and purchase within the crypto gaming world. In comparison, traditional gaming usually does not offer such ownership rights to gamers, and the assets owned by players in traditional games tend to hold little value outside of the game.

Esports has been a growing industry over the past few decades and has grown at a healthy rate. The popularity of esports started internationally in South Korea and China in the late 90s. By the early 2000s, its popularity reached the United States. With the addition of Twitch, a streaming service built around video games, the popularity of esports went international by the early 2010s. Investors were enticed by the esports industry and expected a fruitful market in the upcoming years. In 2022, many investors not seeing a return on their investments, not due to a lack of popularity, but rather a difference in markets.

This past Sunday night, the Philadelphia 76ers NBA star Joel Embiid from Yaounde, Cameroon made history. The court was electric watching him dominate a career-high 59-point game, scoring 26 of the 27 points in the fourth quarter. Earlier this year, the Denver Nuggets took a surprise visit to Sombor, Serbia to surprise Nikola Jokic, the fourth internationally-born player to win the NBA MVP award multiple times. In 2021, a player notoriously nicknamed “The Greek Freak”, Giannis Antetokounmpo, secured the Bucks' first championship title in half a century, earning him back-to-back MVP trophies. With such successes and a broad reach to countries around the world, the NBA is becoming recognized as more than simply television entertainment.

The World Series is one of the biggest American sporting events of the year. The games brought in an average of 11.75 million viewers in the 2021 MLB World Series, with a high of 14.3 million viewers in the series’ final game. The viewership ratings made a remarkable recovery from the 2020 COVID-19 World Series, where only 9.7 million average viewers tuned in to watch the World Series. During the first game of the 2020 World Series, they were only able to bring in 9.1 million viewers, which is the lowest number of viewers ever for a World Series game. This was a significant decrease compared to 2019’s World Series, which brought in 23 million viewers for the seventh game. It was projected that Game 7 brought in 400 million dollars in total advertisement revenue. Despite the fluctuating viewers, the World Series is undoubtedly the center of attention for baseball fans, as well as for companies looking to show off their brand. 

The World Cup is making history in 2022! This year marks the first time in the 92-year history of the World Cup that it is hosted by a Middle Eastern nation. Qatar put in its bid in 2009 while competing against Australia, South Korea, Japan, and the U.S. for the chance to host this prestigious event. Hosting sports events as globally recognized as the World Cup ensures economic benefits that will provide the nation with a great opportunity to not only capitalize on profit but also show off its unique culture and traditions throughout the event, resulting in progress for the nation of Qatar.

This is the first post in a -part blog series focused on the 2022 World Cup.

Four years ago, more than half the global population tuned in to watch the 2018 FIFA World Cup. Now, only a month away, soccer fans anxiously await the 2022 World Cup. This year, thirty-two countries will compete in the most popular sport in the world in hopes of being crowned champion. With over 3.5 billion fans worldwide and over 250 million players across 200 countries, no other event reaches such a global audience.

Soccer, most commonly known as football worldwide, has an immense amount of popularity and support from individuals of all ages. It is universally known to bring others together to provide a positive and enjoyable experience. Lately, this has not been the case.

The Olympics is one of the few events where people from all over the world gather together. People are competing for their home country while achieving individual accomplishments and record-breaking scores. It is a time of gathering and celebration. However, in order to make this event possible, the host country has to plan years in advance. Sports venues, athletes' accommodations, and transportation improvements are all necessary to prepare for the crowds. The venues, in particular, have received criticism over the past several decades. From the economy perspective, their creation costs are high with a low utility after the event. From the social perspective, millions of people were forced to move in order to make space for the constructions.

Sports play an important role in the lives of millions of people worldwide; they bring people together, they provide entertainment and exercise, and, often overlooked, they’re an engine for an extremely high-grossing industry. Globally, the sports industry has been estimated to be worth over $620 billion. Over the last 20 years, major sports leagues in the U.S. and Europe saw their respective clubs/teams grow their annualized revenue by about 7 percent, a performance matched only by the healthcare and education service sectors. One such league with a pronounced affinity for high-grossing activity is the NBA. The NBA has seen more profitability than any other league in the past few years, mainly due to its effective globalization to regions like China and Africa.

One of the most afflicted industries from the pandemic was entertainment.  The prevention of travel and crowded environments, as well as the cancellation of many global sporting events, had a significant impact on the gambling industry. Brick-and-mortar gambling companies experienced decimated levels of revenue in 2020 due to lockdown restrictions.  However, these events gave way to the rapid growth of the online gambling market—an emerging trend that is here to stay.

The Olympic Games is a storied athletic event that has taken place for centuries.  Since the inception of the modern-era Olympics in 1896, the event has only been canceled three times (1916, 1940, 1944)—all in times of world wars.  The 2020 Summer Olympics, which was set to take place in Tokyo, Japan, was postponed until this upcoming summer due to the barriers that the COVID-19 pandemic set in place. 

As the seasons continue to change, fall is in full swing and will soon give way to winter in the Northern Hemisphere.  For many people, this means we are in the heart of the American football season—the game serves as a center point for holidays like Thanksgiving and, with more lockdowns imminent as a result of COVID-19, will likely be a major pastime during the winter months.  So, how does American football (which I’ll refer to as just football for the rest of this blog) fare as an overall market?

The recent spread of the COVID-19 has caused the sports world to practically shut down. College spring sports are canceled, the March Madness Tournament has been canceled, baseball spring training has been canceled, the NBA has suspended all games for the next month. Yet, these sporting events, games, and tournaments bring in billions of dollars in revenue. So, how will this affect businesses and economies around the world?

As mentioned in “Hong Kong Protests and their Potential Consequences” last month, the divide between Hong Kong and China over civil liberties remains fierce, with no resolution achieved as protests continue.  Daryl Morey, one of the NBA’s most respected general managers as apart of the Houston Rockets, has come under fire for a recent tweet he made in support of the democratic protests in Hong Kong, in which he shared: “Fight for freedom. Stand with Hong Kong.” 

As spring break passes for students and people around the world begin to get a taste of warmer spring weather, the global ski industry will work to close out the winter season with strong earnings and participation.  Millions of people elect to swarm to the snowy peaks of ski resorts each year, taking on the slopes in hopes of finding leisure, winning a competition, or satisfying their adventurous spirit.  With the recent passing of the 2018 Winter Olympics in PyeongChang, China, the industry is hoping to capitalize on recent attraction to winter athletics in previously lacking regions like Russia and previously mentioned China.

Electronic sports, or more commonly known as “eSports” are an online competitive platform allowing video game users to compete through online gaming. Although people have been playing computer games for over 30 years, digitalization has permitted players to gain a following of millions of fans. The global connectivity has also allowed online gaming to become more organized, competitive, and professional.

The sport of baseball boasts ties across the world, carrying tradition and holding economic value in countries like the Dominican Republic, Japan, China, and the U.S. For countries around the globe, baseball has been, or is, necessary to their way of life. Recently, however, baseball has seen a substantial decrease in its popularity at all levels. From Major League Baseball to Little League, fewer people are participating in, purchasing goods from, and supporting baseball games. This has a direct influence on many global economies, specifically regarding the equipment with which baseball is played. The question for many retailers and consumers is, what does the future hold for the sport of baseball and its business operations?

There is no doubt that sports never fail to bring the world together. It provides a platform for national unity and city pride. Hosting international sports events such as the Olympics, Fifa World Cup, or the Super Bowl is the reason for a significant amount of economic development in countries. However, these economic developments can be beneficial but also very costly for host countries. 

The Olympics have been a household staple occurring biannually for multiple centuries now. In less than 100 days, PyeongChang, South Korea will join the ranks of other cities who have had the honor of hosting the Games. This event kicks off with opening ceremonies starting on February 9th, with competitive events beginning on the 8th, till the 25th with 102 events in 15 sports. This year will be the first year for big air snowboarding, which is replacing the parallel slalom, mixed doubles curling, mass start speed skating and mixed team alpine skiing. However, with the hype of Olympics still growing, through social media, ticket sales have not been following the same trend.

Part four of this week's blog series explores current events in the sports sector of the leisure industry. 

A few trends are expected to drive the sports industry in 2017 such as the rapid change in the sports media landscape of content creation and distribution rights due to consumers shifting from cable to digital media. Other trends expected are innovation for game days by enhancing the fan experience outside of the sports venue and the use of augmented and virtual reality to enable teams to become more personalized and integrated with sports fans’ daily lives. In addition, it is expected that data and analytics will continue to drive the more business focused side of the industry.

The Fédération Internationale de Football Association, or FIFA, is the international governing body of soccer, the world’s most popular game. FIFA has been under massive scrutiny from the fans, media, and government officials in the past month over the re-election, and subsequent resignation, of their embattled president and corruption charges leveled against nine current and former top FIFA officials. These charges culminated in the arrest of seven FIFA officials in Zurich, Switzerland on May 27th. These officials are now facing extradition to the United States on broad corruption charges, which include racketeering, wire fraud, money laundering, and tax evasion.

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.

A few months ago, Brazilian authorities officially announced that $2.3 billion will be spent on infrastructure projects alone for the 2016 Rio de Janeiro Olympic Games. These costs will rise as projects are added along the way, and efforts to solve Brazil’s infrastructure gap continue. The pressure on the country continues as Brazil will be the first South American country to host the Olympic Games. On top of the 2016 Olympics, Brazil is also hosting the 2014 FIFA World Cup this summer and has experienced delays in its infrastructure preparation. Therefore, the focus on infrastructure development has sharpened in Brazil. Now the question is: How will Brazil’s infrastructure growth impact its long-term prospects as an emerging country in the global economy?

Russia has spent more than $45 billion hosting the most expensive Winter Olympics in history with the hope of boosting its economy. People are beginning to doubt if this larger expenditure is really worth it. Although people have already seen the Russian ruble appreciate in value, they are still unsure if the Olympics will take Russia out of the time when the economic growth slowed down to only 1.3 percent last year. This article will analyze the economic data of several countries after hosting major international sporting events so you are able to predict how Russia’s economy will perform after the Winter Olympics.

Just how much does it cost to host an Olympics? The 2014 Winter Olympics in Sochi, Russia are more expensive than every other Winter Olympics combined. The cost is projected to be around $51 billion, which is ten million dollars more than the 2012 Summer Olympics in Beijing, China. This money goes towards construction, transportation, hospitality, security, lodging and more. For events like the Olympics, it is starting to look like a waste of money for all of the over-extravagant, luxurious decorations and celebrations that take place. It has become less about the athletics, and more about which country can make their Olympics look the best to the world. A country like Russia has a lot larger problems that it should allocate $51 billion to, especially if they are trying to clear up their image.

Is it possible to predict the number of medals each country will win in the Winter Olympics by using a combination of economic indicators?  Without economics, predicting the winners would involve an extensive amount of knowledge on numerous sports and athletes. By using an economic model, one does not need extensive knowledge about each sport. In a recent study, Madeleine Andreff and Wladimir Andreff tried to predict the number of medals a country could win in the Winter Olympics by using economics.

With the lighting of the ceremonial torch in Sochi, Russia last Friday night, the 22nd Winter Olympic Games have officially begun. Beyond capturing the world's attention throughout the month of February, these Olympic Games, like other major sporting events, have profound economic and political effects that resonate throughout the entire international system. Therefore, as the world's eyes turn towards the showcase of some of the world's finest athleticism taking place in Sochi, this post will explore some of the less eye-catching, yet equally significant, aspects of events like the Sochi Olympics and their unique place within international markets and politics.

Here at Michigan State University, basketball is not simply a sport; it has its own culture. Spartan basketball is a way of life. If you disagree, you need only watch the Izzone student section for a few minutes to understand the passion for MSU basketball. This season, though, has been somewhat different for the stars of the basketball team.

The team got a facelift in technology when they were given new software for free that enables head coach Izzo to almost instantly send recaps of plays with a detailed analysis to the players on any one of their devices. This sort of coaching technology has skyrocketed recently and is starting to make its debut in foreign countries.

The 2012 Summer Olympics will undoubtedly have a major impact on the British Economy. Prime Minister David Cameron has already stated that the Olympic Games will give Britain a 13 billion pound economic boost. With the 2012 Olympics in London shaping up to be the most expensive games in history, much is expected from the Olympics in terms of economic growth for the United Kingdom. However with all this talk about its impact on Britain, the Summer Olympics may have an even greater impact on the global business world.

In the business world, sports may be best recognized for the many benefits they offer to individual businesses such as sponsorships, brand building, venues for advertisement, and marketing opportunities. However, sports also have major impacts on economies all around the world. It’s no surprise that international sporting events like the World Cup and the Olympics greatly affect the economies of host countries. These economic effects can be positive or negative and can have implications not only on a regional level but a global level as well.

Sponsorships are a huge part of both sports and business. Each depend on the other to gain the benefits sponsorships provide to each party. Businesses look forward to the increased publicity and sales, and athletes, teams, and sporting events count on sponsorships for funding. Still, for businesses, the monetary benefits of a sponsorship can be somewhat difficult to quantify. Yet, countless businesses still participate in sponsorship deals to increase publicity and get their name and logo out there as much as possible.

The world of sports is closely intertwined with the world of business.  Sports franchises and leagues function to create an economically-viable product for profit.  Businesses in many industries utilize sports entertainment for its unmatched marketing opportunities.  Global athletic events bring tourism, trade, and international attention to host cities and countries.  Businesses could not function without sports and sports could not function without business.  This week, the globalEDGE blog will take a closer look at business and economic impacts of sports around the world. 

We’ve heard a lot this week about how people worldwide are changing how and where they travel. It seems a fitting end to the series, then, to discuss what the future may hold for global tourism. One of the ways to do this is to examine sports tourism, one of the hottest new trends in the global tourism industry.

So we've heard about a lot of the positives about what a World Cup can bring a country, but is it really all gravy for South Africa?

With the excitement of the World Cup evident in South Africa, there is also great pride and unity among locals.  The energy of the World Cup has spread all over the country, and has even hit the poorest areas.  This energy has provided harmony among citizens and although many areas in South Africa are still suffering, right now everything is about football.  Problems such as poverty stricken homes and jobless citizens still exist, but they are being put on hold for a very important event for South Africa.  During the game between Mexico and South Africa, over 3,000 locals gathered in a park to enthusiastically watch the game. The World Cup has greatly improved the moral of South African citizens. 

As the 2010 World Cup kicks off, there are a lot of interesting stories not only on the pitch, but on the business side of things as well. They include fake goods and counterfeit products, local food vendors being pushed out, extra investments, 'green' jerseys and huge sponsorship deals. This week we will be writing about the impact that the World Cup has on South Africa, sponsorships, copyrights and the economics of running an event such as a World Cup. We hope that you'll join us this week!

Senegal is one of the world's poorest countries (17th to be exact), where the average annual income is $980 according to the World Bank's latest figures. This is increasingly concerning as their major industry, fishing, is declining due to over-fishing and intense competition from Asia. But there is a booming industry which is primed for growth and provides investment opportunities in Senegal, and I would say most people wouldn't be able to guess what it is. That industry is wrestling, and it is starting to grow much more popular than football (soccer) in the country. It used to be a pastime of the farmers in the region, who could only work on farming during the rainy season. When they came to the cities to work, they found there was quite an audience ready to watch them wrestle, a traditional African sport which has transformed to take on elements of martial arts and boxing. Now, a winner of a big Lutte (as the Senegalese call it) match can make up to 100 million West African CFA francs ($205,000)! Some bigger names will even make a lot just by participating.

For years, Cricket has been India’s most popular sport, with millions of people following and supporting the teams. In India, Cricket has a value of over $1 billion! However, football fans, and value, are growing in numbers as well. Football is valued at roughly $65 million. The sport still has quite a ways to go to catch up with Cricket, but the die hard fans in the northeast part of India are trying to make that happen.

The 2010 FIFA World Cup is coming to South Africa. Along with it are several business opportunities! As the most popular sport in the world, football brings countless opportunities for many industries to take advantage of. The World Cup in particular attracts business people from all over the world because of its expansive publicity and popularity.

Many sporting events have seen a decline in fan attendance or have had to lower admission prices as more people are losing their jobs and consider attending sporting events a luxury. Furthermore, major companies have cut their sponsorship budgets. However, more and more sports are finding a solution to finance problems by advertising and investing in Asia.

One of the most well-known soccer teams in the world is the Spanish team Real Madrid. It is mostly famous for being able to afford the best players worldwide – Beckham, Di Stefano, and Zidane in the past and Kaka and Ronaldo in the near future. Recently it offered a world record amount (over $100 million) to Manchester United for their most recognized player – Cristiano Ronaldo. A few months ago some European teams were faced with the possibility of bankruptcy but this has never been the case with Real Madrid. Many wonder where Real is getting all this money from when the world is in a recession?

Football, or soccer as the Americans call it, especially in England is the second most important thing after family in life; it is like a religion. Europeans follow it closely because it is part of their lifestyle. But what happens when t-shirt sponsors go bankrupt? When team sponsors suffer huge financial setbacks because they hold stakes in Icelandic banks?