America is a nation that is uniquely passionate about sports. The industry’s total annual value — television viewing, participation and attendance — is around $70 million. An estimated 40 million Americans will play at most one softball game each year. A lot more will attempt to hit the basketball rim.
What factors have contributed to this enormous popularity, and what can it mean for the various sports businesses? It is partly due to the stability of sports. Regardless of the economic downturn, you still have the option to gather some friends and play a sport somewhere. It’s also due to the ability of sports and entertainment to unite people, inspire them, and entertain them.
There are only a few key areas that can provide the ultimate power for economic growth in sporting activities.
Companies’ Economic Growth and Equipment Improvement
The days of young boys searching for the perfect glove in a dime store window have passed. The market’s overall size has seen an increase in the number and quality of sports equipment businesses. Anthem, and the other retailers have been allowed to take a larger part of the $615million baseball equipment market.
But quality hasn’t diminished. In fact, quality has increased and that is how so many companies can reach such large sizes. These firms are more financially profitable due to their greater quality differentiation. The dime-store glove saw fewer seasons in play than modern gloves. Durability is important as players and youth often play almost year-round.
Companies are open to partnering with athletes when they are interested in purchasing quality equipment.
What’s the Role Of Endorsements
Celebrity endorsements may be dismissed by consumers as being a waste of money. They feel that celebrity endorsements are often signed only for the money and not considering the product’s effectiveness.
While it’s not possible to make blanket statements on athlete endorsements, it stands to reason endorsements of pain relievers and sodas would boost sales through celebrity brand recognition rather than product credibility. However, athletes using the equipment may endorse it. This is because athletes would not normally sacrifice performance in exchange for an endorsement deal.
Tiger Woods is an example of this. He used Nike golf ball to increase sales. Woods’ numerous years of success with Nike’s balls are a strong endorsement.
Sports Employment in a Wider Base
ESPN has a weekly viewership that topped 4.3 millions in September 2015. This is higher than any other cable network. Other sports networks are also available 24/7. Sports statistic and recruiting services as well as a multitude blogs with many contributors to the site further expand the employment pool for sports. In addition, workers from another industry produce all of the baseball equipment worth $615 millions, such as the gloves, bats and catcher’s masks.
People in search for work will be attracted to the field because of the incredible salary potential. Former athletes, as well as long-time sports fans, see a career in the sport industry like a dream come to life. The dreams are achievable now that the sport economy supports those jobs.
The American consumer will spend avidly in sports, as it consumes so much of their disposable income. Because of this, the economy in sports will continue growing at an impressive rate.