From American football to paddle tennis: The importance of sports for the world economy

The world of sports goes far beyond its famous players or the people who practice them as an activity, be it football, basketball, baseball or even paddle tennis, of which we can easily get merchandise at Padelot.

Certainly, they are very important activities for the world economy, so today we present a small analysis of why sports are so relevant and influential for the international market.

Sport has a long history and has become one of the most deeply rooted social phenomena with the greatest potential to attract people. The fact is that many of us cannot think of sports as merely an activity or a hobby. We consider you to have a passionate interest in our lives, whether as practitioners or hobbyists.

Many people do things to enjoy or live sports experiences. The most loyal fans travel hundreds of kilometers to see their team play in order to support them unconditionally. There are also people who buy the shoes or clothing worn by their favorite professional athlete.

Groups of friends who like sports decide to take trips with the aim of experiencing a transcendental sporting event with their friends. Such as a game of our team in the World Cup, the Superbowl of the NFL (National Football League), the final of the NBA (National Basketball League) or one of Roger Federer’s tennis, etc.

A 30-second spot during the Super Bowl broadcast costs an advertiser around $5.6 million. It will be viewed by nearly 100 million Americans, who are expected to spend a total of $15.3 billion on groceries and promotional items.

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The Super Bowl is the icing on a cake that has become a major source of revenue for the US economy.

As we have said before, the term “sport” has gone from being a simple social event to being recognized as an excellent good. Whose production, consumption, financing and management are subject to the rationality of the market.

It can also be used to promote local and regional development, urban renewal or rural regeneration.

Sport has synergies with tourism and can therefore help develop infrastructure and establish new sources of finance for sports and leisure facilities.

Millions of people participate in the world of sports in different ways. This can be playing sports, watching television, listening to the radio or attending the sporting events themselves. All of these areas are potential starting points for companies in the sports industry.

In Europe, several investigations have shown that the sports industry generates between 550,000 and 630,000 million euros each year.

The sports industry is estimated to be worth €580 billion a year, including sports assets, infrastructure, licenses and events. These figures continue to rise and account for around 1% of world GDP.

For example, it is estimated that the NFL (National Football League) obtains an annual income of 13,000 million dollars.

The money or the great business generated by this “product” is not only used by sports companies. Everything related to the world of sports can be monetized as commercial and report profits to other participants or companies in the market. Such as sportswear companies, the media, sports agencies, beverages and food supplements.

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Sports organizations, whether professional teams or associations, produce a product from which they benefit directly. They achieve this through the sale of tickets, advertising, emission rights, sale of t-shirts or commercial rights, among other merchandise supply products in general.

According to an investigation of the 2016/2017 Spanish league season, the catering business, such as hotels, restaurants and travel in Spain, generated revenues of almost 4 billion euros as a result of that year’s football league. Nor can we ignore the impact of sport on employment.

The financial and corporate sectors, in particular, benefit from the ‘tractor effect’, as it is known. This includes restaurants, bars, travel agencies, print and digital media, novels, video games, collector’s items, bookmakers, etc.

In conclusion, it does not matter if it is traditional or American football, basketball or paddle tennis that is becoming more and more popular. The fact is that sports activities are a very influential and determining factor for the existence of the current world economy.

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