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

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Steady growth in spectator sport participation has driven club membership levels and attendances at major sporting events, contributing to industry revenue growth. 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

Clubs and organising bodies are anticipated to introduce more stringent regulations to monitor drug use and match fixing activities

The Sports and Physical Recreation Clubs industry has performed modestly over the past five years, due to the continuing popularity of Australian sport. Steady growth in spectator sport participation has driven club membership levels and attendances at major sporting events. Rising sport participation has also benefited operators of amateur sports clubs at local and regional levels. In addition, greater discretionary income over this period has provided consumers with more money to spend on watching and participating in organised sport. As a result, revenue is estimated to grow by a compound annual 3.0% over the five years through 2014-15. Moderate growth of 2.3% is also expected in 2014-15, with revenue reaching $3.0 billion. Over the past five years, several new professional sports teams have been established in the AFL and A-League. According to IBISWorld industry analyst Spencer Little, “these new clubs have driven membership levels and have subsequently contributed to revenue growth.”

Over the next five years, the industry's performance is expected to stagnate slightly as both professional and amateur sports reach saturation. Greater spectator sport participation is set to drive membership levels for professional clubs, while increased participation in amateur sport is likely to drive revenue for local sports clubs. In addition, companies seeking to provide corporate sponsorships for professional sports clubs are expected to contribute to revenue growth over the next five years. The most dramatic effects stemming from the Australian Crime Commission's report on drug use and match fixing are also expected to occur over this period. “Clubs and organising bodies are anticipated to introduce more stringent regulations to monitor drug use and match fixing activities, and harsher penalties for athletes that are found guilty,” says Little.

A low market share concentration characterises the Sports and Physical Recreation Clubs industry. The large number of sporting codes and the wide range of geographical, age and skill tiers means that few clubs operate on national scale. In addition, the large number of professional athletes that effectively act as non-employing sole proprietors further contributes to the industry's fragmented nature. The largest player in the industry is the West Australian Football Commission, which owns both professional AFL clubs in Western Australia. The ownership of professional clubs varies throughout Australia, as companies can be privately owned or operated by members. As most amateur clubs operate on a non-profit basis, there is little incentive to increase market share concentration through the acquisition of smaller clubs. Most professional clubs in Australia operate to maximise their number of wins, rather than their revenue or profit, which further contributes to the industry's low and stable market share concentration.

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

Companies in the industry primarily operate individual sports clubs or physical recreation clubs that provide sporting or physical recreation opportunities to participants, or entertainment for spectators. The industry also includes sports professionals.

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IBISWorld industry Report Key Topics

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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