Sport’s $2 trillion fan economy has outgrown the global GDP rate by nearly 66 per cent over the last 15 years, according to new research.
Since 2010, the fan economy has “compounded at approximately six per cent per year on average”, a report published this week found, “1.6x the 3.8 per cent growth of global GDP over the same period”.
The Fan Economy 2026 report, produced by sport and entertainment marketing agency Two Circles, stated: “This growth is a product of not only resilient growth in fandom’s traditional value capture mechanisms – such as commercial rights around sports IP, consumer products and ticketed events – but also of growth via more recently created and maturing spaces including mobile gaming and wagering, AI and the creator economy.”
The fan economy refers to the wider ecosystem that links live sport with its surrounding sectors, such as merchandise, apparel, experiences and media consumption.
Fan economy driving growth
The report points to investors and private equity funds exploiting fandom products to garner a wider audience, “from PIF and Silver Lake’s $55bn investment into EA; to Apollo’s investment in Atletico Madrid and Bob Iger’s involvement in the record $12.5bn Lakers deal”.
It adds that “sophisticated capital is competing ever more aggressively for scarce fandom assets – pushing sports team M&A to record levels and valuation multiples above 20x revenue for the most coveted properties”.
Data from Investec last month forecast that the global sports market was projected to grow by around 45 per cent by the end of the decade, with tech, data and the fan economy growing in importance alongside traditional IP ownership.
“The UK has the ingredients to matter in this transition: global sporting relevance, deep heritage, major venues, a sophisticated leisure market and a large base of active consumers,” said Investec’s head of consumer and sports M&A Oliver Cardigan.