Sponsorship heads for number one revenue segment

THE SPONSORSHIP SEGMENT of the global sport industry will generate an estimated $45.3 billion in revenue in 2015 to become the largest segment in sport, according to a new study conducted by global consultancy PriceWaterhouseCoopers (PwC).

The report, called “Changing the Game: Outlook for the Global Sports Market to 2015”, projects that sponsorship will show a compound annual growth rate of 5.3% between 2011 and 2015.

Sponsorship growth would be well-distributed around the world with the North American market growing fastest at a CAGR of 6.1%, followed by EMEA at 5.3%, Latin America at 4.9% and Asia Pacific at 4.4%.

Sponsorship already represents the largest component of the sports market in Asia Pacific. “In 2010, sponsorships associated with the FIFA World Cup, The Asian Games and Commonwealth Games generated an incremental $916m, which contributed to the 16.8% increase from 2009 [in Asia Pacific],” the report said.

The report singled out a new deal between the Australian Football League and Toyota worth $8m annually as the biggest single deal in that country in 2010. In India, Nike raised it sponsorship of the Indian national cricket team to $65m for five years.

A presentation on the key findings of the report was made last week by Julie Clarke, PwC UK Leader, Sport & Leisure, at the Sport Business Group and PwC Forum: “Beyond 2012”.