Top Sports Sector Trends 2024

As the global sports industry continues to navigate a period of massive transformation, our 2024 outlook explores the top 10 trends driving the sports sector. This includes use cases for generative artificial intelligence (AI), the power of streaming and changing consumption patterns, the future of entertainment districts, investments in fan data, and league expansions, women's sports and valuation models all breaking the mold, while we are certainly staring down a “new normal” in college athletics.

Our 2024 Top 10 Trends in brief:

1. Generative AI and Data are driving the revolution in personalizing sports.? Many sports organizations and leagues are putting significant investment into their own extensive fan data programs and building proprietary fan databases. enabling personalization for fans at scale.
2. Streaming: Digital platforms are changing consumption. The rise of streaming services and direct-to-consumer (DTC) sports consumption is transforming how people watch sports. This new era of sports consumption is changing the game for sports viewership and the strategies organizations are adopting to succeed.
3. League expansion is unlocking growth opportunities on a global scale. Targeting new markets and larger audiences, league expansion brings in more fans and presents significant growth opportunities for the sports industry.
4. Valuations continue to break the mold. In 2023, significant investment activity continued across the sports industry, with teams being sold at record valuations including the Washington Commanders at $6B and the Ottawa Senators at $1B, while foreign investment (specifically from the Middle East) continues to fuel valuation increase in soccer with Alpine F1 fetching?$900 million.
5. It's game on for women’s sports! Women’s sports drove record-breaking numbers in viewership, attendance, sponsorships and media rights validation across several major sports in 2023 with the NWSL setting records in attendance and viewership on top of a transformative?$240M media rights?deal.
6. Entertainment districts are transforming the fan experience. A much more engaging game day experience is emerging, where fans arrive early to enjoy shopping, dining and tailgating at the stadium complex's entertainment district, creating additional revenue streams and improving the fan experience.
7. Compelling sports stories are boosting engagement. The recent surge in popularity of sports narrativities, including documentaries, shows, and other unscripted content, has been remarkable. the docuseries?Welcome to Wrexham, and Full Swing, which has recently launched Season 2.
8. Sports betting making significant inroads. Online sports betting is currently legal in 26 states, with state 27 not far behind. While FanDuel and DraftKings have dominated the market, two major players are edging their way in, including? ESPN Bet and Fanatics' acquisition of PointsBet.
9. Is there a ‘new normal” in collegiate sports? New conferences and other big conference moves, along with their implications on competition, revenue, sponsorships, and name, image and likeness (NIL), means new NCAA Commissioner, Charlie Baker, has his hands full. In one example, the Power 4 conferences will rake in?$20B+ in media rights deals and ESPN and the NCAA have reached a new, eight-year agreement, all of which leaves one to question the impact on the institutions, athletes, fans, and the NCAA itself.
10. Emerging from underdog status, soccer is on the rise in the US. Soccer has seen a significant ride in popularity in the US with rising celebrity of US leagues, broadcast accessibility, and the emergence of US soccer on the international stage, notwithstanding the US Women’s team recent loss to Mexico. The US will command center stage in international soccer, as it hosts the Club World Cup in 2025 and the FIFA World Cup in 2026.