2023 sports
industry outlook2023 sports industry outlook
Contents
The virtualization of sports: From novelty to utility4
Tackling risks in a maturing sports betting market 5
Private equity and sports: Teaming for the long term6
The next win for women’s professional sports 7
New possibilities from the professionalization of college athletics 8
Signposts for the future 9
About Deloitte’s outlooks
Deloitte’s 2023 outlook for the sports industry seeks to identify the strategic issues sports organizations should consider in the coming year and
their impacts, as well as critical questions to ask and key actions to take. The goal is to equip sports organizations with the information they need to
help position themselves for a strong, resilient future.
22023 sports industry outlook
Executive summary
In this global golden age of sports, 2023 Here is our 2023 outlook in brief:
o The blending of physical and digital experiences will move
is expected to bring organizations andfrom proving concepts to creating new functionality and better
athletes more chances than ever to deeply experiences.
connect with their fans.o With the possibility of new sports betting restrictions emerging
around the world, there will be a greater emphasis on risk
management and responsibility as the industry seeks more growth
This includes engaging through some important international events
and profitability.
like the Cricket World Cup (India), Rugby World Cup (France), and
the FIFA Women’s World Cup (Australia and New Zealand). This year o Interest and involvement by private equity investment in sports will
will also see new media deals and more innovations from streaming continue to grow. How will sports organizations respond to new
providers as their influence grows. In a challenging economic types of investors and their expectations? How will investors act
environment, sports will likely still be seen as an attractive option during a potential economic downturn?
for investment, with investors endeavoring to take a responsible
o After a breakthrough year, women’s professional sports are in a
and sustainable approach. Technology will continue to infuse
strong position to further advance in 2023, but additional work is
every aspect of sports, empowering athletes and creating a more
necessary to improve awareness, expand sponsorship, and grow
immersive experience for fans at live events and at home. In
media rights valuations and investment.
general, 2023 will be about making the most of these near-term
opportunities while managing associated risks with the longer term o College athletics in the United States are undergoing unparalleled
in mind.change. It will be a challenge to balance the extraordinary
opportunity with responsibility to student-athletes, schools, fans,
partners, and alumni.
32023 sports industry outlook
The virtualization of sports:
From novelty to utility
The use of digital assets such as non-fungible tokens (NFTs), fan NFTs in sports will need to overcome some barriers—and quickly—
tokens, and blockchain-enabled tickets are evolving for sports. Many to progress rapidly. For many fans, the barriers to entry can seem
major sports organizations across the world are working with partners high, mainly because of a general lack of understanding of what
to build markets in these areas. Simple digital collectibles, originally NFTs are and how they work. There are also worries about risks
seen as curiosities, are becoming advanced digital assets that can be and immaturity in the market and the sustainability of the services.6
used to improve fan engagement and loyalty and create new business Sports organizations and their technology partners should consider
models and even more new revenue streams. In the coming year,making it as easy as possible for the average fan to set up a wallet
expect to see major strides for these assets. and purchase digital assets. These challenges will likely have to be
addressed if sports organizations want new revenue sources, better
The broader NFT market has softened, with overall sales and activity fan engagement, and more knowledge of their audience.
seeing a significant decline in 2022.1 However, the sports market
naturally lends itself to the “collector’s mindset” and athletes, teams,
and leagues are continuing to look at how to best leverage these
assets to drive fan engagement. Many leagues and organizations have
formed partnerships in this space, some with multiple technologyStrategic questions to consider:
and entertainment companies, for different products. Sorare has
o Should sports organizations base their NFT
partnered with the National Basketball Association (NBA), Major strategy on specific benefits, or broad utility
League Baseball (MLB), Major League Soccer (MLS), Bundesliga,for fans? Which approach is most likely to drive
LaLiga, and other football (soccer) leagues for their NFT-based fantasy rapid growth for the market?
games.2 FIFA launched FIFA+ Collect with partner Algorand to provide
o How can these offerings drive fan loyalty in
3
a platform for World Cup–related digital collectibles. The National different ways than traditional activities?
Football League (NFL) is working with Mythical Games on NFL Rivals,
o How can sports organizations encourage
a blockchain-based mobile game; Ticketmaster on commemorativeinnovation and interoperability across
NFT tickets; DraftKings on Reignmakers, an NFT-based fantasy sportsdisparate platforms?
game; and Dapper Labs on NFL All Day, an NFT marketplace.4
o How can existing service providers innovate
fast enough to keep up, specifically in ticketing
Digital collectibles, and their potential as an investment, are not likely and loyalty?
to drive this market alone in the long term. The shift toward NFTs
that can provide additional utility, functionality, or redeemability to
the owner will be imperative. This could include NFT ticketing, which
is beginning to see use for music concerts and is being discussed
for international sporting events.5 NFT ticketing can reduce fraud,
increase transferability, and establish a live and eternal link between
issuer and owner. It also has the potential to drive new sources of
revenue for sports organizations through secondary sales. The key is
to not just replace something physical with something digital, but to
connect and leverage the two to create new value. NFT tickets could
unlock unique benefits for fans, like access to real and virtual events
with athletes, privileges in venues, voting on team/club decisions, and
exclusive access to unique merchandise.
42023 sports industry outlook
Tackling risks in a maturing sports
betting market
Although sports betting has been legal in some countries for more
than a decade, the United States is a relative newcomer, having only
opened the door more broadly to legalization in 2018. In just a few
short years, the US market has seen rapid growth, with some type Strategic questions to consider:
of sports betting legal and active in 31 states and more than US$42 o What is the best model to deliver the right
billion of bets placed in the first half of 2022.7 balance of economic opportunity and
adequate consumer protection?
A lot of positive attention has been given to the increased economic
o How can operators best focus on customer 5
opportunity and fan engagement that sports betting can bring.acquisition and retention while facing the
However, it is also important to reflect on related societal issues, potential for tighter regulations around
including the potential for corruption, illegal betting, issues with marketing and advertising?
addiction, and financial crime.8 As the US market mature