The Business of... SPORTS
An LA Dodgers baseball player recently signed a 10-year, $700 million dollar contract. The LARGEST contract in US sports history. Last month, an NFL quarterback signed a $330 million-dollar football deal with $250 million in guaranteed cash, the LARGEST guaranteed money in NFL league history. In 2024 Cristiano Ronaldo, an international soccer phenom, made more than $200 million in salary and winnings and another $60 million in endorsements. The business of sports has become a multi- billion-dollar industry and the players, coaches, student athletes and their schools are just beginning to “cash in” on all the new financial options and opportunities. Period. Full Stop. According to Deloitte Consulting, the global sports industry reached a value of $480 billion in 2023 and is expected to reach more than $680 billion by 2028. The global sports industry is a conglomeration of several complementary markets. When combined, has the potential to directly affect the global economy. The industry consists of several submarkets including sporting goods, nutritional supplements and sports betting to name a few. Sports betting is expected to grow to a $245 billion-dollar market with Vegas style gambling and on-line action through companies like DraftKings and BET MGM Sportsbook, where Jamie Foxx is their contracted pitchman. The playing field for sports is growing and getting bigger by the minute. As the fan base expands, less traditional sports like Formula 1 or pickleball are growing in popularity. New multi-million- dollar ESPN streaming deals for professional teams and players has become the norm. NFL football teams are now going international and European soccer clubs are expanding their footprint in the US with the National Women’s Soccer League (NWSL). Denver is getting a new professional women’s soccer team as part of the NWSL expansion. Denver NWSL, in partnership with the City of Centennial and Cherry Creek
School District (CCSD), will build a 12,000-seat temporary stadium for Denver NWSL to play in for the 2026 and 2027 NWSL seasons. Small colleges to large universities and everything in between are participating with all the new money flowing through sports. From the announcement of countless conference changes to several record-breaking NIL deals the industry is vast and growing like wildfire. The past few years in college sports have been jammed packed with change, with many more changes on the way, will help pay high school athletes to come to your school and then pay them to stay. The University of Colorado and other in-state institutions are now allowed to provide financial compensation for student athletes. Last month, Governor Polis signed into law House Bill 25-1041 regarding student athletes and their name, image and likeness (NIL). That’s long-term money that can severely alter a family’s future and create multi-generational wealth. The business of sports has evolved into a global economic force. As a member of the Colorado Black Chamber of Commerce, I encourage us to examine the business and employment opportunities in the multi-billion-dollar sports industry.
THG is a government relations consulting firm that specializes in water and energy issues. www.thg.consulting
Dale R. Hunter Founder, The Hunter Group (THG).
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The Acumen
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