As athletics have evolved from a recreational pastime or social diversion into big business and a legitimate environment for investment, our perception of sports has changed dramatically. Athletes are doled out three-quarter billion-dollar contracts, city tax structures are remade by sweetheart stadium deals and new technologies have the power to redefine the market – and occasionally even the on-field product.
Today, sports make up a multifaceted industry that encompasses leagues, teams, events, fan experiences, consumer products and emerging tech innovations. The relatively newfound appeal of investment in the sector largely has to do with the perception of sports’ consistent strength as an industry, even during broader market downturns. But that raises the question: Are sports investments truly resilient?
Why the Health of the Sports Industry Endures
In 2019, the global sports industry had an estimated value of $2.65 trillion – the ninth-largest industry worldwide – according to the Best-Howard model used by Global Sports Insights. That figure represented growth of $338 billion over four years. More illustrative are figures showing the growth of the North American sports market – the largest in the world – during the years ranging from 2009-2023. Swelling from a $48.7 billion industry in 2009 to almost twice that in 2023 ($83.1 billion), the market’s growth didn’t miss a beat even during the pandemic years. Statista projects the U.S. market alone to reach $117.9 billion in 2025, and expects the industry’s value to grow at a rate of 3.98 percent, to $137.8 billion by 2029.
What’s driving this growth? On a broader level, it is consumer demand and affinity for spectator sports, participation in competitive athletics (particularly at the youth level) and the widening cultural embrace of health, fitness and an active lifestyle. Consider, again, the COVID years: Even as markets tanked and the economy cratered, consumers eagerly purchased bicycles, running shoes, Pelotons, fitness apps and wearable tech such as smart watches and motion analysis. The moment the arenas of shuttered sporting events opened again, seats were packed, broadcast ratings skyrocketed and fans flocked to betting apps to wager on games. The global appetite for sports, and thus the incentive to innovate in the sector, has proven to be a reliable hedge for investors.
How Sports Compares to Other Industries
Even as other industries – some of them entrenched, iconic leviathans in the global market – struggle to find their footing in a tech-enabled world, the sports industry has held strong. Retail has grappled with the crumbling of the brick-and-mortar consumer experience, and has since been forced to cope with supply chain issues and modern marketing, advertising and customer-loyalty challenges. The entertainment industry, turned on its ear by a shift from theater experiences, concerts and TV cable to streaming and spectacular in-home platforms and tech, is still grasping for straws.
Meanwhile, the sports industry has remained nimble. Perhaps the industry has been conditioned to adapt because of the inherent instability and transience of athletics, as championship teams come and go, and superstars such as Tom Brady, Steph Curry and Lionel Messi are on top of the world one day and are retired (or nearly so) the next. In any case, sports organizations continue to show increasing willingness to innovate and embrace change. At the same time, the industry’s frenzied consumer market and resilience – even in economic slowdowns due to steady, dependable revenues from ticket sales, merchandise and media rights – has driven venture capital interest and helped investors discover growth while mitigating risk.
Although Not Invincible, Sports Are a Proven Investment
A note of caution: Resilience does not equal invincibility. The reality is, even as the sports’ market booms, the industry shouldn’t be viewed as a gold rush whose every individual vein gives endlessly. It is a many-channeled and complex sector made up of widely disparate businesses, profit models and value propositions. As should be expected, not all of them deliver a windfall return on investment. Not every sports investment is bulletproof.
Yet the sports market is uniquely positioned and primed to respond to new ideas and innovation. Its consumer base doesn’t merely welcome, but demands as much. The resilience of sports investment, and specifically investment in sports technology, isn’t an absolute truth. But there are highly credible projections, supported in part by measurable and extensive historical trends, that indicate the sports market is a fertile environment for a winning investment strategy.
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