1

Sports Industry, a global overview

COVID-19 economic impact and challenges.

Amir Somoggi

Content

3

Global Sports Industry

Football, the global game.

Coronavirus economic impact on sports.

Challenges and new trends.

4

Global sports market = US$756 billion annually.Global Sports Industry Sports Industry revenues– 2018- US$ billion

23%

36%

15%

26%

Source: Sports Value

5

19%

36%

16%

29%

Sports retail in US represented for 50% for all global sales.

Global sports retail sales- 2018- US$ billionGlobal Sports Industry

270

9472

22

Global sports retail Sports goods sales Nike, Adidas,Puma andUnder Armour sales

Other brands

New Balance- US$ 4,1 Vans - US$ 3,9 Asics- US$ 3,5Mizuno- US$ 1,7

Source: Sports Value

6

US$ 70 billion in marketing

USA= US$ 32 billion

Europe = US$ 20 billion

Global sports revenues

Jersey sponsorship / total commercial income

Global Sports Industry

European teams generate more than US$ 7 billion annually in commercial revenue.

Source: Sports Value

7

Top 4 Leagues

generated US$ 3,9

billion in 2018.

NBA jumped 30% in 2018.

1.070

679 695

409

1.150

739 778

447

1.200

799 827

477

1.250

861 892

505

1.320

1.120

938

560

NFL NBA MLB NHL

2014 2015 2016 2017 2018

Sponsorship revenues in US Leagues -US$ billion

Source: IEG

Global sports revenues

Global Sports Industry

8

US$ 52 billion in matchday

EE.UU. = US$ 32 billion

Europe = US$ 18 billion

Global broadcast rights = US$ 49 billion

7,3

4,6

3,8

3,7

3,1

1,6

1,6

1,4

1,3

1,3

0,9

NFL-USA

Premier League-UK

NBA-USA

MLB-USA

Colleges USA

Champions League-EUR

Bundesliga-GER

NHL-USA

Serie A-ITA

La Liga -SPA

Ligue 1-FRA

USAUS$ 22 billion

Global sports revenues

Global Sports Industry

9

More than 3,7 billion people are footblal fans worldwide, and 1 billion of them are fanatics!

Source: Nielsen

Football, the

global game

Football, the

global game

10

252

165

105

103

97

86

82

76

66

47

45

45

40

39

34

33

33

31

28

25

C H I N A

B R A Z I L

U S A

I N D O N E S I A

J A P A N

I N D I A

M E X I C O

R U S S I A

G E R M A N Y

F R A N C E

I T A L Y

U K

T UR K E Y

C O L O M B I A

T H A I L A N D

S P A I N

A R G E N T I N A

S O U T H K O R E A

S O UT H A F R I C A

P O L A N D

FIFA 2014 WC Audiences

Source: FIFA

Football, the

global game

11

FIFA WC Audiences

Source: FIFA

2018 and 2014 FIFA WC TV audience

12

Football clubs business model

Clubs

70/80 90

CompaniesConsume and entertainment

2000

Content generation

Now /Future

Football, the

global game

Football, the

global game

15,6

5,3

4,2

2,6

0,7

BIG 5 - 1ST.DIVISION

NON BIG 5 -1ST. DIVISION

FIFA/UEFA/NATIONAL ASSOCIATIONS

BIG 5- OTHER DIVISIONS

NON BIG 5 -OTHER DIVISIONS

In 2017-18 professional European football market generates€ 28,4 billion, according to Deloitte.

Revenues- € billion

Top 20 teams€ 8,3 billion

Globally professional football genrates around € 36 billion.

Source: Deloitte

14

Challenges• Game quality.

• Global audience.

• Legal Safety.• Household spend in football .

Football leagues worldwide revenues-€ million Emerging football markets with big future potential:Football, the

global game

Source: Sports Value

COVID-19-Coronavirus economic impact

16

Coronavirus

economic

impact

Sport as an important economic sector

Leagues, teams, sponsors, investors, media aresuffering with COVID-19´s crisis.

Competitions being cancelled or extended.

Matches with closed gates and leagues decidingto simply paralyze their activities.

By Sports Value calculations, for every US$1 generated directly with aprofessional sports league, can reach up to US$ 2,5 produced inindirect and economy-induced effects.

Sports Industry indirect and induced effect

17

Losses will be inevitable

Matchday revenues -By League- US$ millionCoronavirus

economic

impact2.256

1.400

1.089

1.011

718

544

504

296

217

200

182

111

88

79

51

MLB- USA

NFL- USA

NHL-- USA

NBA- - USA

Premier League- UK

La Liga- Spain

Bundesliga-Germany

MLS-USA

Série A -Italy

Série A-Brazil

Ligue 1- France

Netherlands

Turkey

Scotland

Portugal

Source: Sports Value

18

Losses will be inevitable

Coronavirus

economic

impact

According to Forbes, the big professional sportsleagues will loose US$ 5 billion in revenues.

KPMG predicted that Top 5 European Leagueswill loose other US$ 4,5 billion in revenues.

Losses = Gate receipts, broadcast rights, product sales and sponsorships

Sports Value´s prediction show that professional sports sector will loose more

than US$ 15 billion with COVID-19.

9% of all Sports Pro revenues.

2% of global Sports Industry .

19

Challenges and

new trendsPeople are enclosed in their homes.

Digital environment will be afundamental response to thisconfinement.

For work and leisure.

Brands need to exploit this highunique home audience.

Global4,6 billion people are connected

in Internet.

3,8 billion in social media platforms.

US$ 3,5 trillion e-commerce sales in 2019.

The world is in lockdown!

Football fan and shoppers

How to work on this environment?

20

Challenges and

new trends

Teams and idols at social network

Source: Result Sports

Big idols have more followers on social media than

their clubs.

21

Challenges and

new trends Continuous fan engagement work.

Use digital channels, players and formerplayers/coaches to entertain the fan.

Use this new content to create new deliveries forsponsors.

Providing new unique content for broadcast andrights holders.

Develop leisure and sports activities to parents andtheir kids at home.

Create weekly activities to the fans at social network,posting, interacting and exchanging passion.

What leagues and teams MUST do:

How to work on this environment?

Contact

22

Sports marketing, branding, sponsorships and valuations

Amir SomoggiDirectoramir.somoggi@sportsvalue.com.br+55 11 99749-2233

https://www.sportsvalue.com.br/

Our Services

23