Category Archives: Finance

2019 sports industry game-changers

Pete Giorgio

Pete Giorgio, principle with Deloitte Consulting LLP, leads Deloitte’s US Sports practice

Sports trends expected to disrupt and dominate

Like most other industries, sports are being disrupted by technology advancements and cultural changes. How can sports executives capitalize on these industry changes in 2019? Our annual report explores eight trends that could redefine the sports industry in the year ahead.

 

Our starting lineup for 2019

2018 was an exciting year for sports. France beat out Croatia in a goal-filled match to win the World Cup. Simone Biles took home six medals at the world championship. The Red Sox won their fourth World Series title in 15 years. And the Capitals took home the Stanley Cup for the first time in team history.

Off the field, we’ve seen athletes grow as spokespeople for causes, front offices overhauled to bring in even more analytical rigor, and streaming media options grow in prominence. What trends will we be scouting this year? Our 2019 sports industry outlook covers eight trends to watch:

 

sports and digital icons

Athletes as content creators

Gone are the days of sports fans needing reporters to get news about their favorite players. Over the past few years, athletes are increasingly becoming content creators in their own right—be it through Instagram, Twitter, or long-form stories on websites like The Players’ Tribune.

While the athlete’s role as an individual content creator serves as a small complement to traditional media, this trend—buoyed by stars who were raised in the digital age—could become even more impactful and important in the coming years. This platform will enable further expansion and value of personal brands while also opening the door for the next generation of athletes to build their brands before they become household names.

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“The fewer barriers there are between athletes and fans, the more commercial opportunities that will materialize. The value in having fans relate to their favorite players is immeasurable.”

Brian Finkel, Deloitte Sports Research, Deloitte & Touche LLP

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virtual reality headset

Augmented and virtual reality

As technology advances, the challenge of keeping fans constantly engaged has become more and more difficult. Any lull in the game leads to fans diverting their attention to their phones and consuming content from other venues.

However, the growing integration of augmented and virtual reality is transforming the customer experience by giving fans the opportunity to get “closer” to athletes while having a single platform to access a wealth of data. While there are still some kinks that need to be worked out, this is a time where prioritization of customer experience is at an all-time high.

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“VR brings the best of the stadium into the home, while AR brings the best of home into the stadium.”

Allan Cook, digital reality leader, managing director, Deloitte Consulting LLP

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football plays on a chalkboard

The offensive revolution

Few ideas are as widely accepted among sports fans and players as the old adage that offense sells tickets, but defense wins games. As we watch shootout after shootout across professional sports, during the regular season and the playoffs, analysts are beginning to wonder whether times have officially changed.

While viewership numbers are up, purists question whether such a focus on offense has impacted the integrity of the games they love. This presents teams with a tough decision to make: Do they keep investing in offense and hope that’s enough? Or do they consider strategic defensive investments that will enable them to play a different game to compete in both the arena and in the market?

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“While increasing offense intends to sell more tickets, leagues will have to balance offense with maintaining the value of defensive skill and the historical backdrop of their sport.”

Lee Teller, specialist leader, Deloitte Consulting LLP

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sports betting app

Sports betting trends

What happens in Vegas no longer needs to stay in Vegas. With states now free to choose whether to legalize sports betting or not, many key stakeholders see opportunities to monetize, while others raise concerns about the impact legalized gambling could have on the integrity of the game, and federal and state governments consider their roles and legislative next steps.

Not only will betting impact the relationship between leagues, gambling institutions, data providers, and the government, it’s already changing the way fans can interact with games. The NBA recently announced an offering that allows fans to stream the fourth quarter of a game for $1.99. While convenient for the busy fan who is only able to watch part of a game, this is particularly notable for gamblers staking bets on real-time game lines who want to watch critical moments in the games they bet on.

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“September 2018 marked the first month of online sports betting dominance in New Jersey. With results from recent months, this trend has and will continue to be the dominant theme for the foreseeable future.”

Jamie Poster, manager, Deloitte & Touche LLP

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bubble map of sports icons

Tackling mental health

The past few years have seen an increasing number of high-profile athletes, storied franchises, and top programs publicly address a topic that affects both MVPs and weekend warriors: mental health. Many stars have offered a glimpse behind the curtain of endorsements and champion podiums into lives affected by symptoms of depression, anxiety, and other mental health conditions.

With one in four people worldwide affected by mental or neurological disorders during their lives, the notion that handsomely paid and highly visible athletes are willing to shed light on a topic historically burdened with a negative stigma is both a positive movement and refreshingly relatable. With each athlete that comes forward, it becomes increasingly apparent that the sports world’s investment in mental wellness is only just the beginning.

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“Mental health is more than a hot-button societal issue, it has the opportunity to become a key long-term competitive advantage for the teams and countries that effectively engage, support, and work with their athletes.”

Ramya Murali, senior manager, Deloitte Consulting LLP

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soccer players and goalie

European soccer reaches America

Every two years, soccer’s popularity in America spikes as fervor surrounding the World Cup spreads throughout the nation. However, recent polling points not just to cyclical interest but long-term, sustained growth. Soccer is now the second-most-played youth sport in America and more Americans between the ages of 18 and 34 name soccer as their favorite sport over baseball.

European nations have taken note of this rise and are seeking to capitalize. The English Premier League inked a deal with NBC Sports in 2015 reportedly worth a billion dollars to stream its games to American households. And investments extend to human capital as well: European clubs are increasingly looking to young Americans to fill their rosters.

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“The US market provides a massive marketing, financing, and talent opportunity for European soccer—from traditional powerhouses to lower division teams looking to regain relevancy.”

Sam Ebb, senior consultant, Deloitte Consulting LLP

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phone and video game controller icon

eSports

With the vast audiences drawn to eSports and the increasing direct ties to professional leagues, we’ve seen players, executives, and owners jumping into the arena as team owners and avid gamers, as well as a way to continue to connect with teammates and fans off the court. As leagues look to continue building and expanding their fan bases, their eSports presence will be a major part of those interactions.

Over the coming year, we expect teams and leagues will continue to embrace eSports as a part of the existing major sports leagues, including efforts to integrate eSports opportunities into the existing sports experience, from eSports lounges in Topgolf facilities to an eSports arena in the Real Madrid’s new stadium.

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“The eSports landscape continues to stabilize around the maturation of teams and leagues and increasing sponsor engagement.”

Kat Harwood, senior manager, Deloitte Consulting LLP

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bar graph and pie chart

Personalizing fan engagement

While organizations have always collected data from season ticket holders, fan loyalty programs, and other fan engagement sources, many teams house this data in disparate databases and siloed customer-relationship management systems. These organizations, though, are starting to think about the fan holistically, requiring a centralization of these touchpoints into a single source of truth that can drive deeper, more personalized fan engagement—inside and outside of the stadium.

As sports teams and leagues build on and incorporate the successes of the e-commerce revolution, they’ll be able to connect all dots of a single fan’s journey, helping to sell additional tickets while also driving personalized connections and experiences that can increase the lifetime value of fans. Over the next year, we believe organizations will adapt their marketing functions to leverage fan data and become even more nimble and automated.

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“A key question for teams remains who is in each seat, but more importantly, focus is shifting to who engages with the brand inside and outside the venue?”

Chad Deweese, manager, Deloitte Consulting LLP

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Download the full report to learn more

 

Take a look back at previous years’ reports:

2018 sports industry trends

2017 sports industry trends

2016 sports industry trends​

 

Let’s talk sports industry trends

We believe these topics are going to impact the business of sports, both on and off the field, over the next 12 months. But invariably new stories, trends, and themes will emerge that further disrupt the industry, derail the game plan for executives, and delight us as sports fans. Please tweet #DeloitteSports to share the sports trends or opportunities that are on your mind in 2019.

football field

Get in touch

Pete Giorgio

Pete Giorgio
US Leader | Sports

pgiorgio@deloitte.com

Pete, a principal with Deloitte Consulting LLP, leads Deloitte’s US Sports practice, serving multiple sports clients including the United States Golf Association, NBA, United States Tennis Association… more

5G will impact these 10 industries the most (Video)

Video

By Alison DeNisco Rayome, Senior Editor for TechRepublic on March 20, 2019, 6:36 AM PST

Major 5G network deployments are expected by 2020, and the technology will create opportunities across many industries, according to CB Insights.

Highly-anticipated major 5G networks are expected to be deployed by 2020, and will transform a number of industries due to the technology’s ability to provide wider network coverage, more stable internet connections, and faster data transfer speeds, according to a recent report from CB Insights.

5G will also enable the rise in the number of Internet of Things (IoT) devices, along with the amount of data they generate, the report noted.

While 5G sets the stage for new opportunities across many fields, it also will bring disruption to those industries, the report said.

CB Insights identified the 20 industries that 5G will impact the most. Here are the top 10:

1. Manufacturing

5G is poised to help manufacturing production operations become more flexible and efficient, while also improving safety and lowering maintenance costs.

2. Energy and utilities

Critical infrastructure like energy and utilities will benefit from 5G technologies, which could create more innovative solutions in energy production, transmission, distribution, and usage, as well as the next wave of smart grid features and efficiency.

3. Agriculture

Farmers worldwide are using IoT technology to optimize agricultural processes including water management, fertigation, livestock safety, and crop monitoring, the report noted. 5G could enable real-time data collection, allowing farmers to monitor, track, and automate agricultural systems to increase profitability, efficiency, and safety.

4. Retail

More than 100 million Americans made a purchase on their smartphone in 2018, the report noted, and the move to mobile shopping is largely due to the rise of 4G/LTE. The faster speeds 5G will bring will enable new retail experiences like virtual reality (VR) dressing rooms.

5. Financial services

5G will accelerated the digitization of financial institutions, including from internal operations to customer service, the report said. Increased security and speed will allow users to increasingly make transactions instantly on their devices, and make remote tellers a possibility.

6. Media and entertainment

5G will bring about new opportunities in mobile media, mobile advertising, home broadband, and TV, as well as interactive technologies like VR and augmented reality (AR).

7. Healthcare

In the healthcare industry, 5G could increase efficiencies and revenue, helping health systems create faster, more efficient networks to keep up with the large amounts of data involved. The technology could also enable the use of remote monitoring devices to improve health outcomes.

8. Transportation

Transportation systems ranging from public buses to private logistic fleets will gain increased visibility and control thanks to 5G, the report said. 5G will allow improved vehicle-to-vehicle communications, enabling more self-driving car testing. These networks will also help cities gain access to more data around their transportation systems.

9. AR/VR

The future of AR and VR depends on reliable 5G networks, according to the report. These technologies require a less expensive, wider network with lower latency to continue developing and reaching widespread adoption, as they require massive amounts of data processing.

10. Insurance

5G will help insurance agents make more effective decisions, as they will have access to more accurate data, the report said.

You can see the full report here.

For more 5G coverage, check out this TechRepublic/ZDNet special feature: How 5G will transform business.