Report on the Financial Aspects of the Sports Industry

This report provides a financial analysis of the sports industry, focusing on the United States and Australia. It examines revenue streams such as media rights and ticket sales, highlighting their significance in the market. The report also explores the growth potential of the sports entertainment industry, with projections for future revenue and market trends. The analysis includes data on the sports industry's value, growth rates, and key players in the market, as well as referencing sources like Forbes and Ibisworld.com.au. The report emphasizes the importance of the sports industry and its low capital intensity. The report also includes a bibliography for the information provided.

FINANCE
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Introduction:
The sports entertainment industry in US was worth $60.5 billion in 2014 and has the potentiality
to attain $73.5 billion by 2019 (Forbes, 2015). In this regard the sports media rights play an
integral role to play having the potentiality to generate $20.6 billion in 2019 from $14.6 billion in
2014. The local television rights of the popular sporting events like baseball, hockey and
basketball are the major attractions and it has growth potential in the upcoming times as well.
Besides media rights, sale of tickets for attending the sporting events has the potentiality to
generate revenue worth $20.1 billion in 2019. The sporting teams also indulge in creative and
commercial promotions which impacts the dynamic price changing model of the prevailing
business scenario.
The entertainment industry in Australia is worth $40 billion out of which sports, its share has at
$12 billion annually (Ibisworld.com.au, 2018). It is estimated that within the time period of
2014-19, the sports entertainment industry will grow by 4% annually with the relevance of
different broadcasters to win rights for various sporting organisations like Cricket Australia,
NRL and AFL. The Australian television provides live broadcast of the popular games like
Australian Rules football, cricket, golf and tennis amongst others. The sports entertainment
industry in Australia is quite profitable as is considered as a low capital intensive industry. It is
because for paying wage for a dollar a mere amount of $0.15 is invested for the purpose
attracting investments for establishing Sports and Recreational Clubs.
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Bibliography
Forbes, 2015. Sports Industry To Reach $73.5 Billion By 2019. [Online]
Available at: https://www.forbes.com/sites/darrenheitner/2015/10/19/sports-industry-to-reach-
73-5-billion-by-2019/
[Accessed 11 April 2019].
Ibisworld.com.au, 2018. Sports – Australia Industry Research Reports | IBISWorld. [Online]
Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/thematic-
reports/sports.html
[Accessed 11 April 2019].
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