Trends in Sports Industry

Former Golden State Warriors minority owner Chamath Palihapitiya says sports valuations will peak in 2024. Chamath paid $25 million for a 10% stake in the Warriors in 2011. But he sold his stake in the team last year and most likely profited more than $250 million. This is something that could impact all professional sports teams — but let's use the NBA as an example. NBA teams used to trade at a 3-4x revenue multiple, but now they routinely trade at a 10x revenue multiple. Most people have ignored the NBA's multiple expansion because there are several powerful tailwinds at play. • Sports Betting • International expansion • Real estate development But TV money is MUCH more important. For example, NBA franchise valuations doubled overnight when the NBA announced its last media rights deal in 2014 — from $634 million to $1.1 billion. That's because 1) these deals only come up once every decade, and 2) media rights represent the majority of league revenue. But since media rights are so crucial to the growth of the NBA and its franchises, the same could be said about what will happen if media rights slow down. Everyone knows how valuable live sports are to the TV bundle — sports represented 96 out of the top 100 most-watched TV broadcasts last year. And even with the decline of the cable bundle, the idea has always been that the demand from linear networks, plus the addition of streaming companies, would drive media rights higher. That’s been true so far. The NFL recently added billions in revenue from deals with Amazon and Peacock, while Fox, CBS, NBC, and ESPN also increased their fees. But that doesn’t mean it will happen forever. Cable companies will soon reach a point where it doesn’t make financial sense to pay up for future rights, which is why you have already heard rumors that the NBA’s next media deal won’t be as big as they previously thought it would. Streaming companies also make more money off other endeavors, including Amazon’s genuine desire to have people join the Prime bundle. And bankruptcies across regional sports networks have already cost NBA, MLB, and NHL hundreds of millions in projected payments over the next decade. That's not to say the NBA won't grow. Expansion teams are on the horizon, providing each NBA owner with a ~$300 million payment. International growth is getting stronger — NBA China is now a $5 billion business — and that's without even mentioning the lucrative tax benefits these teams provide billionaire owners. But my point is simple... The media landscape is changing, and no one should expect NBA valuations to grow at the same rate they have over the last decade. Ps. Follow me Joe Pompliano for more sports business content like this! #sports #sportsbiz #linkedinsports

Fan engagement technology is heating up... Last week, LiveLike secured a $3.5M growth credit facility from Bigfoot Capital to scale its interactive fan tech. 𝐋𝐨𝐭𝐬 𝐨𝐟 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐡𝐚𝐬 𝐫𝐞𝐜𝐞𝐧𝐭𝐥𝐲 𝐟𝐥𝐨𝐰𝐞𝐝 𝐢𝐧𝐭𝐨 𝐟𝐚𝐧 𝐞𝐧𝐠𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐩𝐥𝐚𝐭𝐟𝐨𝐫𝐦𝐬: • FanCircles raised $2M for subscription-based fan communities • Momants raised €1M to power global fan chat with multilingual AI • ALT Sports Data brought in $5M to gamify niche sports engagement • sesh raised $5M to build superfan loyalty tools using mobile wallet tech • 15 Seconds of Fame, Inc. closed $15M to deliver personalized in-game clips What’s happening? 💡 ❶ Fan behavior = monetizable data (and everyone wants to own it) ❷ AI is everywhere (powering clips, chats, predictions, and rewards) ❸ Direct-to-fan channels are booming (wallet cards, fan clubs, etc) In an era where reach is easy but retention is everything, these platforms are aiming to 𝘭𝘢𝘺 𝘵𝘩𝘦 𝘨𝘳𝘰𝘶𝘯𝘥𝘸𝘰𝘳𝘬 for the next generation of loyalty.

Sports viewership is drastically changing. According to a Nielsen ratings report, in 2023 the NFL made up 93 of the top 100 broadcast programs. But the wide majority of those viewers included Boomers, Gen X, and Millennials. Gen Z is shifting the entire landscape of sports media as we know it. Here are a few interesting stats to consider about Gen Z from various reports: • 74% of Gen Zers get most of their sports content from social media • 60% have never watched a college game in person • 47% said they have never watched a professional sporting event in person • 28% of Gen Zers watch sports events live on broadcast or cable • 1% say they will go to a bar to watch a game The next generation of sports fans is less engaged, more isolated, and spends on average 7.2 hours in front of screens. Stakeholders across teams, leagues, and media companies have a reason for concern given the enormous value of media rights and deals. Despite all of this, I think there is still hope. Gen Z is still: • Highly engaged in women's sports which is on the rise • More diverse and culturally aware than previous generations • Very socially active and environmentally conscious For executives to succeed in this changing landscape they need to: • Be where Gen Z already is • Align with their interests and values • Make athletes the face and build points of connection • Consistently incorporate state-of-the-art technology and data • Create immersive and engaging experiences Times are changing. Older people have to be willing to change with it. #sportstech #sportsmedia #linkedinsports

🏀 The Future of Sports Partnerships: Less Logo Slaps, More Impact 🚀 Not long ago, sports sponsorships were all about logo placements—billboards, jerseys, static signage. But in today’s world, brand partnerships need to do more than just “show up.” They need to resonate. The best sponsorships aren’t just transactions; they’re strategic integrations that drive real impact for brands, teams, and fans alike. 🔹 The Shift: Brands are moving from passive visibility to active engagement—think interactive activations, digital integrations, and immersive fan experiences. 🔹 The Opportunity: The right partnership can’t just exist; it needs to enhance the game-day experience, tell a compelling story, and build emotional connections. 🔹 The Challenge: How do we create sponsorships that feel authentic instead of forced? 💡 Here’s what I’ve learned from negotiating partnerships at the Minnesota Timberwolves & Lynx: 1️⃣ Innovation Wins – The most successful partnerships are the ones that create new categories and unlock untapped revenue streams. If it’s never been done before, that’s the opportunity. 2️⃣ Cultural Relevance Matters – Fans don’t just love sports; they love the culture around it. The best sponsorships tap into local pride, viral moments, and emerging trends. 3️⃣ ROI is More Than Impressions – Brands aren’t just looking for visibility anymore; they want measurable engagement, data-driven insights, and proof that their investment drives results. At the end of the day, the best deals aren’t just signed—they’re built. They’re the result of deep conversations, creative problem-solving, and a commitment to aligning brand objectives with fan passion. 🔥 What’s the most creative or unexpected sports partnership you’ve seen recently? Drop your thoughts below—I’d love to hear! 👇 #SportsSponsorships #BrandPartnerships #SportsMarketing #FanEngagement #RevenueGrowth

Federer made more owning a piece of this company than from 103 titles. How athletes are powering the modern creator-led brand: Roger Federer is on the Mount Rushmore of Tennis. If you don’t consider him the GOAT, he’s one of the best ever. Period. As a brand, if you’re going to come to him to try to make a deal, you have to make it worth his time. In 2018, instead of the classic brand sponsorship model, On., a small Swiss running shoe brand, pitched Federer with something different. On had started by revolutionizing the running shoe. They wanted to do more. They needed help designing for outside their niche of running. They needed to break out beyond Europe too. As a tennis athlete with global respect and reach, Federer could help them expand into new product categories and global markets. So instead of a cash deal, they offered him stock…3% of the company. Federer accepted the deal and within two years, they launched new product lines designed for tennis athletes. On’s sales have exploded since Federer’s deal. They’ve gone global and even IPO’d. The brand is now valued at over $12 billion. So Federer made $360 million from that 3% equity deal. (note: his career tennis earnings were $130M) Everyone won. Check out the difference between the two styles of partnerships: Brand Sponsorship Playbook: - Find a famous person. - Pay them a fee to hold your product & smile. - Do a photoshoot. - Use photos in ads. - Hope it drives sales. Creator-Led Equity Partnership Playbook: - Find a trusted icon, who aligns with the values of the company. - Develop a deep partnership with them. - Make them owners of the company with an equity stake. - Use their expertise to help craft product offerings. - Invest in each other’s mutual success. Icons will emerge from sports, social media, entertainment and more. The icons get involved in creating for the brand and both grow. More creators will launch brands. More existing brands will bring creators on as equity partners. This trend is just getting started. If this post resonates with you, share ♻️ this post and follow me, Matt Schnuck, for insights on entrepreneurship, EQ and from 25 years in business

There's a shift in the sports representation landscape today as Tandem Sports + Entertainment officially rebrands as Gersh Sports. The move represents the first phase of Gersh's acquisition of You First | Gersh announced last December. What makes this particularly notable is how it continues to bridge the traditional gap between sports and entertainment representation under one unified banner similar to what we have seen with Creative Artists Agency, William Morris Endeavor, United Talent Agency, and others. For sports agents and industry professionals, this consolidation signals the growing importance of cross-disciplinary representation. Athletes today desire more than contract negotiation - they seek personal brand development, marketing support, cultural positioning, and philanthropic guidance. The Gersh Sports basketball division's roster Jarrett Allen, Desmond Bane, and Hall of Famers like Tim Duncan and Grant Hill. This shift reflects where the sports agency industry continues to head: premium boutique service backed by substantial resources and scale. As the lines between sports, entertainment, and media continue to blur, expect more consolidation as agencies position themselves to provide comprehensive representation across all platforms. What are your thoughts on this industry evolution? Is the era of specialized sports agencies coming to an end? #SportsAgency #AgencyConsolidation #AthleteRepresentation #SportsMarketing #LinkedInSports

My first sports business prediction of 2025. College sports will require stronger brand, marketing and creative agency teams within the next five years. With the rise of NIL, student-athletes are now monetizing their personal brands, pushing competition for talent beyond athletic performance and into the realm of marketing and storytelling. At the same time, evolving fan consumption habits and their growing demand for deeper engagement are reshaping the landscape. Add to this the increasing competition for sponsorship and commercialization opportunities, and it’s clear: the programs that think strategically about marketing will have an edge. To stay ahead, colleges will need marketing capabilities that rival those of professional sports teams like the NFL and EPL—focusing on building excitement, cultivating new fans (even internationally), and strengthening relationships with existing audiences. For aspiring sports marketers, this presents an incredible opportunity. If you're looking to break into the industry, college sports will be an exciting and dynamic space to make your mark.

74% of professional women athletes work a second job. Yes, literally nearly 3 out of 4!!! 🤯 This hurt my heart learning because I firmly believe they shouldn't have operate this way (pure necessity vs. being able to choose to explore other ventures because they want to - think: Angel Reese). But why are they doing this in the first place? Well... without it, they can't pursue their dreams according to PARITY's new report. These athletes are professionals, competing at the highest level. Most earn less than $50,000 annually from their sport. After expenses, 50% net ZERO income. $0.00. Nada. Nothing. 😞 The reality? More prime-time coverage and viral moments might make it seem like women's sports are thriving (and yes, everyone watches women’s sports). BUT the numbers tell a different story at the individual athlete level... These athletes aren't just training— 1 in 4 are working in full-time jobs (yep, on top of 22+ hours of training each week), missing crucial recovery treatments due to finances, and are often operating in debt. But here's where it gets interesting 👀 💡 A modest $20,000 sponsorship would be "life-changing" or “very meaningful” for 88% of these athletes. That's less than what many companies spend on a single marketing campaign. For context, on average for general marketing campaigns medium-sized businesses ($4MM+ annual revenues) spend $10,000 to $20,000 per moth, and enterprise businesses spend $60,000+ per month. 💡 On top of that, they’re viewed as MORE credible than male athletes when representing brands (57% vs. 50%). 💡 And their influence on purchase behavior is 2.8x GREATER than other influencers. ✨ The opportunity? ✨ Brands don't just have a chance to support athletes — they have the power to transform an entire industry. As many leaders in women sports have made crystal clear before you've heard it from me here, this isn't charity. It's SMART business at the end of the day where everybody can win. 💰 If you want to see the full new report by PARITY | A Group 1001 Company, click the link in the comments below. ⬇️ Which stat from this report was most interesting or unexpected for you to discover? Sound off below - let's talk about it. #WomensSports #Athletes #SportsBusiness

Gyms and studios are getting back into growth mode. Riding the momentum, recent earnings calls and developments reveal what’s on the mind of industry execs. Youth movement. Courting Gen Z, Planet Fitness offers free summer access to teens, garnering 2.8M sign-ups this year. The gym chain converted 600K new members from last year’s program. Losing it. Asked about the rise of prescription weight loss drugs, Life Time Inc. CEO Bahram Akradi said it’s not a factor since members join for the social aspect, not weight loss alone. But, with more prescriptions expected, the fitness industry will be wise to shift its focus from aesthetics or weight loss to longevity, mental wellness, and the holistic benefits of exercise. Going global. Xponential Fitness recently entered France, the company now has a presence in 19 countries outside North America. Barry's is also adding studios in Israel, Bahrain, and Egypt. Bridging the gap. Linking fitness and healthcare, equipment makers Technogym and EGYM want to chart a new course for the industry — one where doctors prescribe exercise as medicine. TBD. F45 Training is delisting from the NYSE. And Peloton Interactive will report earnings later this month, revealing how its new app-first strategy is playing out. Read the full report ⬇️

The Sports Advertising Revolution: How are you thinking about this for 2025? The game isn't just changing – it's already changed. Amazon Ads is redefining sports advertising, and the numbers don't lie. 1. Streaming Dominance: By the end of 2024, 105.3 million US viewers will stream sports, compared to 85.7 million on linear TV (EMARKETER, 2024). Better yet, Amazon data demonstrates that many of these are net new viewers! 2. Rapid Shift: In 2022, broadcast TV led with 97.2 million viewers vs. 84.0 million for streaming. Now, streaming's in the lead and widening the gap. By 2027, it'll be 127.4 million streaming vs. 75.4 million on broadcast. This creates a huge opportunity for brands to reach new audience, drive sales and measure the result. 3. Women's Sports Explosion: Women's sports revenues are up 300% from 2021 (Deloitte). New leagues are launching, viewership is soaring, and brands are creating separate line items for women's sports in upfront deals. And I am proud that Amazon is leading the way with partnerships like the WNBA (Women's National Basketball Association) and National Women's Soccer League (NWSL). 4. Amazon's Power Play: With National Football League (NFL), Major League Baseball (MLB), National Hockey League (NHL) today, and NASCAR/National Basketball Association (NBA) coming to in 2025, Prime Sports is positioned to capture a massive share of digital sports viewers. As you start to think about your plans how will you lean into this? Here's the kicker: Overall sports viewership hasn't grown significantly (47.6% in 2024 vs. 46.9% in 2018). It's not about more viewers – it's about reaching them where they are now...and measuring the impact on your sales. The future of sports advertising isn't just about eyeballs - it's about engagement, data, and direct results. Amazon Ads offers all three, plus the ability to close the loop from ad view to purchase. So, here's my challenge to you: Are you adapting to this seismic shift? The clock's ticking. It's time to decide: Will you be a spectator in this new era of sports advertising, or will you get in the game?