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Sport sector safe from credit crunch
By Caroline Wilkinson
The UK sports market is to weather the current credit crunch and is set to experience a nine per cent annual growth until 2012, according to a report by PricewaterhouseCoopers.
The report, called The Global Entertainment & Media Outlook 2008-2012 , forecasts a rise in new rights deals, ticket prices for new stadiums and corporate sponsorships stimulated by 2012 London Olympics. It also predicts that the UK sport sector will generate £86bn from the sale of gate tickets, media rights fees, merchandise, sports sponsorships and intellectual property by 2012.
Julie Clark, head of sport at PricewaterhouseCoopers, says: “As access to sport grows via the explosion of more sports channels, programmes and the marketing of players as superstars, the UK sports fan consumes more live games, merchandise and TV across a variety of sports.”
According to the report, the UK has the fastest growing sports industry in Europe, Middle East and Africa (EMEA) with the Olympics expected to produce an extra £1.6bn – a 25 per cent increase – between 2011 and 2012 alone.
Clark predicts: “Not only will the UK outperform the US sports market, which will creep from £28bn ($56bn) to £35bn ($69bn) between 2008 and 2012, but has higher projected growth over the next four years than any other major country in the World.”
Although UK revenue is predicted to peak in 2012, Clark believes the sports sponsorship market is unlikely to decline due to the continued investment in football and the 2014 Commonwealth Games in Glasgow.
Globally, major international events such as the Beijing Olympics in 2008, the Vancouver Olympics in 2010, London Olympics in 2010 and the FIFA World Cup will boost TV rights fees and sponsorship revenues in all host regions.
Clark said: “Competition between pay TV providers and over-the-air networks will fuel demand for TV rights fees while mobile and online rights will ensure the market is booming in all regions.”
The report also profiles the UK, France, Germany, Italy and Spain to collectively account for 86 per cent of the EMEA sport market in 2012.
The UK sports market is to weather the current credit crunch and is set to experience a nine per cent annual growth until 2012, according to a report by PricewaterhouseCoopers.
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