Professional Sports Teams & Organizations Industry Profile

The US professional sports teams industry includes about 1,500 organizations with combined annual revenue of about $30 billion. The dominant professional sports leagues in the US are the National Football League (NFL), the National Basketball Association (NBA), Major League Baseball (MLB), and the National Hockey League (NHL). Other leagues include the Women’s National Basketball Association (WNBA), Major League Soccer (MLS), and the American Hockey League (AHL). The industry is concentrated: the top 50 organizations generate about 60 percent of revenue.

Globally, professional sports generates about $120 billion in revenue. Football (soccer in the US) is the dominant sport outside North America; other popular sports include rugby, cricket, and baseball. Major international professional leagues and organizations include the Fédération Internationale de Football Association (FIFA, France), the English Premier League (UK), and Nippon Professional Baseball (Japan).

The industry includes both major league and minor league sports teams, but not individual professional sports, such as golf, tennis, and boxing.

COMPETITIVE LANDSCAPE

Demand is driven by consumer income and corporate entertainment spending. The profitability of individual teams depends on achieving high fan attendance and a large TV audience, both of which are enhanced by effective marketing and competitive play. Teams in large metropolitan areas have advantages in the population base and TV audience they can draw on, though they may face competition from other teams. Teams in smaller markets, along with less popular sports and ...