The Sports Industry and its Influence on Business

THE SPORTS INDUSTRY INFLUENCE SMALL BUSINESSES WHICH GREW TO ENORMOUS FRANCHISES HOME 21 VISITORS 14 Total number of employed in U.S. Sports memorabilia sales $4B HOME 21 VISITORS 14 Sports are an insanely popular pastime in America – so much so that there are actually (unofficial) national holidays and traditions dedicated to sports alone (i.e.the Super Bowl and World Series). Besides the sports industry itself, sports-related businesses generate billions of dollars a year. Sales for sports memorabilia and supplies are monumental. 138,960,000 -Sports industry US.sports industry employs 1.5 million $2B 09% 2009 2007 (estimates) HOME 21 VISITORS 14 HOME 21 VISITORS 14 IT'S A LIVING! 138,960,000 PEOPLE ARE EMPLOYED IN THE U.S. HOW MANY OF THEM WORK IN THE SPORTS INDUSTRY? BEWARE OF FRAUD! THERE IS A LARGE AMOUNT OF FRAUD IN THE SPORTS MEMORABILIA INDUSTRY More than 1.28 million Americans work directly in amusement, gambling and recreation sectors. The vice president of sportsmemorabilia.com estimated the autographed memorabilia industry to be $4 billion a year in 2009. TOP PLAYERS IN SPORTS RETAIL Professional U.S. athletes 16,500 Coaches, scouts 225,700 MODELL'S SPORTS AUTHORITY. Umpires, referees, officials 15,900 SPORTIN G GOODS* Cotta Co To Mo's More than 90,000 items have been listed on Work in fitness centers 261,100 eb Y between FOUNDED: Manhattan in 1889 by Hungarian immigrant Morris A. Modell RANGE: 144+ stores in 11 states FOUNDED: Denver, Colorado in 1928 by Nathan Gart. Gart Sports evolved into Sports Authority in 1987 after a series of acquisitions. Work in snow skiing facilities 67,061 January and March 2009 alone. EMPLOYS: 5,430 MARKET SHARE: Privately held RANGE: 450+ stores in 45 states Work in bowling centers 69,900 EMPLOYS: 15,825 MARKET SHARE:5.1% 334,900 An investigation by the FBI between 1997-2000 found that more than 50 Work at country clubs/golf courses Wholesale sporting goods sales 46,000 REVENUE (2007): $636.5 million REVENUE (2008): $2.98 billion percent perhaps as much as 90 percent – of items comprising the overall $1 billion U.S. memorabilia market in 2000 were fake. -and Retail sporting goods sales 245,630 BIG5 DICK S EPORTING GOODS TOTAL: FOUNDED: California in 1955 as five Army-Navy surplus stores RANGE: 388 stores in 12 states EMPLOYS: 8,600 MARKET SHARE: 1.7% 1,282,691 SPORTING GOODS. FOUNDED: Binghampton, NY in 1948 by 18-year-old Dick Stack RANGE: 419 stores in 40 states EMPLOYS: 10,200 MARKET SHARE: 7.2% REVENUE (2009): $895.5 million REVENUE (FY 2010): $4.41 billion SIZE OF THE SPORTS INDUSTRY Estimated size of the entire U.S.sports industry in 2010: In 2009, U.S. Wholesale Sporting Goods Manufacturers racked up Retail sales of sports merchandise in 2008: $35 billion Dreams Inc. (memorabilia company) sales in 2009: May 2009:National Sporting Goods Association reported 2008's final sales amounted to $52.3 billion $85,535,000 $414 billion an estimated and 2009's was $71.8 billion in sales* $50.7 billion *Includes sporting goods equipment, sports apparel, fitness equipment, recreational transport equipment and athletic footwear intuit. Small Business In spite of the decline, 2008 sales were the second highest in the 30 years the Association has been doing the market study. S T A -NSGA Vice President of Information & Research Thomas B. Doyle,2008 SOURCES:ESPN;CNN; Reuters;Yahoo Business;National Sporting Goods Association;Hoovers; Plunkett Research