Sports and Physical Recreation Clubs in Australia Industry Market Research Report Now Updated by IBISWorld

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Sports and Physical Recreation Clubs industry has been attempting to diversify its revenue streams in order to stay viable in a tough environment. For this reason, industry research firm IBISWorld has updated its report on the Sports and Physical Recreation Clubs industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The industry has sought to diversify its income with a stronger focus on social gaming revenue and membership levels.

Despite the relatively basic business model that the Sports and Physical Recreation Clubs industry in Australia works with, external and internal factors alike have created consistent levels of drama for the industry over the past five years. In the beginning of the period, many clubs struggled amid the economic environment created by the global financial crisis. According to IBISWorld industry analyst Craig Shulman, “Reduced consumer and business confidence led to conservative spending behaviour by both parties, leading to reduced revenue from the industry's main sources of income: membership fees and sponsorship deals.” Consequently, the industry has sought to diversify its income streams through a stronger focus on social gaming revenue and increasing membership levels. With a gradual revival of business confidence encouraging greater spending on sponsorship, these initiatives have found success. However, uncertainty about electronic gaming machine legislation has created doubt about this source of revenue as well.

IBISWorld estimates that industry revenue has grown at an annualised rate of 4.4% over the past five years. Revenue is expected to increase by 3.6% in 2013-14 to reach $2.99 billion. Recently the industry has been rocked by the release of a report by the Australian Crime Commission that highlighted the prevalence of performance enhancing drug use and match fixing within professional sports throughout Australia. The most dramatic effects stemming from the report are expected to happen over the next five years. “Clubs and their organising bodies are expected to introduce more powerful regulations to monitor drug use and gambling activities by professional athletes,” says Shulman. Market share concentration amongst Sports and Physical Recreation Clubs is low, with no significant players.

Outside of this controversy, concerns on a professional level about how to best generate revenue and profit are likely to endure within the Sports and Physical Recreation Clubs industry. Ongoing pushes towards higher quality corporate governance are expected to continue, particularly towards creating sustainable club operations with less of a need for parent body subsidies. The main revenue sources will continue to be membership, sponsorship and social gaming, though they are expected to plateau once membership numbers reach their saturation point and new long-term sponsorship deals are in place.

For more information, visit IBISWorld’s Sports and Physical Recreation Clubs report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

The industry is mainly engaged in operating individual sports or physical recreation clubs or teams that provide sporting or physical recreation opportunities to participants, or entertainment for spectators. The industry also includes sports professionals.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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