Sports Sponsorship, Media Rights Boast Steady Growth

Sports leagues and teams sponsorship deals with marketers are expected to rise by modest to low-single-digit percentage increases in the next few years.

PwC, the business service/advisory, says sports sponsorship from stadium naming rights, in-stadium signage, digital media and uniform deals will grow 3.9% over a five-year period through 2020 — $16.3 billion this year to $18.7 billion.

Sponsorship is now the third-biggest revenue generator for teams/leagues, having been surpassed by media rights in 2015. 

Those media rights deals, which were up by a strong 12% in 2016 alone, will continue to rise the most rapidly among all teams/league business categories -- 5% through 2020 -- climbing to $21.3 billion that year. In 2016, they are estimated to hit $18.2 billion.

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Stadium/gate revenues -- currently the largest revenue category in 2016 at $18.7 billion -- will be surpassed by media rights in 2018, according to PwC.

Stadium/gate business will have a 2.7% growth rate through 2020.

Merchandising sales will be the slowest-growing businesses for teams/leagues over the next five years -- up 1.4% and getting to $14.8 billion.

Overall sports league/team revenues will reach $67 billion this year, rising 3.5% over the next five years to $75.7 billion.

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