The Economic Importance of Sports

There’s plenty of other issues to be discussed right now, but we wanted to take a look as to how much sports affect the economy around us. We looked at just the tip of the iceberg.

  • Legal money involved
  • Salaries
  • Major Sports Companies
  • Sports Gambling
  • The unmeasurable

The amount of money involved in sports is hard to determine. We mostly just know that it’s a lot. Statista has done the math on at least 4 major contributing factors. Ticket sales, sponsorships, media rights, and merchandising. The estimate total for 2019? $73.04 Billion dollars. Yes billion.

https://www.statista.com/statistics/214960/revenue-of-the-north-american-sports-market/

For 2020, we were expecting $75.71 billion. On average that’s $6.31 billion every month. Is it starting to make sense why America is in a rush for sports to come back?

But thats not even close to all the money involved.

Total Salaries in Sports

How much are the players getting paid? Well a quick glimpse into the 3 most popular sports in the US gives us an idea. Roughly $12.31 billion more. This is only the paid salaries of 2019. This has nothing to do with committed money for future years. (I.e. Mike Trout alone signed his $0.43 billion dollar contract)

https://www.statista.com/statistics/675220/total-sports-salaries-by-league/

Major Sports Companies Net Worth

ESPN- as of 2018 was valued at $28 billion

UFC- is estimated to be worth $4 billion

Yahoo Sports- is estimated to be worth between $2-4 billion.

DraftKings- is working on a merger that values them at $3.3 billion

Fanduel- has been crushed in valuations but in 2018 they reported over $300 million in revenue with 8.5 million customers.

SPORTS GAMBLING

Since the beginning of the legalization of gambling in certain states (since June 2018) over $20.5 billion has been wagered on sports. That’s directly led to over $1.39 billion in revenue and over $180 million in taxes/state revenue.

No one really knows how much money is being thrown around in back channel sports gambling. Estimates range anywhere from $150-$300 billion. Some are even famous for sports gambling.

https://twitter.com/BillSimmons?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

The Unmeasurable

Sadly, these are only the major numbers. The greater impact is on small sports media companies, coaches, athletes, trainers, scouts, writers, entrepreneurs, and anyone whose employment is based around sports. Sports is another vertebrae in the backbone of the economy. It’s for this reason and much much more that we can’t wait for the eventual end of Covid. Please help do your part.

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