The industry has managed to squeak by with mostly limited losses since 2008
Los Angeles, CA (PRWEB) May 10, 2013
The Racing and Individual Sports industry has given supporters plenty to cheer about during the past decade. With a vast increase in media exposure to meet the demands of die-hard sports fans, the industry seemingly lacked a ceiling. Individual icons, such as golfer Tiger Woods and tennis player Serena Williams, have propelled their respective sports' popularity. As such, these sports have been able to take some attention away from highly popular team sports in the United States. When disposable income and consumer spending dropped in late 2008 through 2010, attendance for industry events and, subsequently, media revenue experienced major pains. The economic downfall particularly hurt less popular sports, and these events struggled to compete with the likes of football and baseball. Meanwhile, equestrian racetracks suffered even more. Such establishments make the bulk of their revenue from wagering, but even frequent gamblers largely ceased their habits due to economic uncertainty. According to IBISWorld Industry analyst Radia Amari, “while total revenue declined in 2009 and kept falling in 2010, the industry has managed to squeak by with mostly limited losses since 2008”. Over the five years to 2013, IBISWorld estimates industry revenue to remain flat, changing at an average annual rate of 0.0% to $13.3 billion, including an expected 1.7% gain in 2013.
Essentially, higher demand for sports broadcasting in the United States has increased media coverage of the industry's activities. As such, IBISWorld projects the industry will grow at a steady pace through 2018. “Racetracks will find new ways to cater to their gambling consumer base as gambling continues to grow in popularity”, says Amari. Meanwhile, as the economy continues to recover, consumers will feel more at ease paying admission costs to sporting events, and sponsors are forecast to steadily resume their investments in professional sports through 2018.
The Racing and Individual Sports industry has a low level of market share concentration. Over the five years to 2013, IBISWorld expects that the number of establishments and enterprises will remain flat. The level of earnings from endorsements, sponsorships, winnings and contract signings account for the vast majority of revenue, which can increase or decrease significantly year to year based on a number of factors. However, any such swings will not likely alter this fragmented industry's level of concentration.
For more information, visit IBISWorld’s Racing and Individual Sports in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes racetrack operators and professional or semiprofessional sports teams and athletes who participate in live sporting events before a paying audience. Industry participants include sports clubs (e.g. auto racing teams), sports trainers (e.g. referees) and athletes (e.g. boxers, wrestlers, figure skaters, racehorses and race dogs). This industry excludes agents and managers who represent sports figures.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.