The sport industry is an instigator of societal growth, as well as significant economic returns. As a result, the future of the industry doesn’t just impact the organisations involved within it; it affects a huge swathe of communities, fans and players around the world. 

Here are the trends that we’re expecting: 

1. Next generation of players, fans and workforces  

Gen Z (1997-2010) and Gen Alpha (2010-2025) will play and consume shorter, more action-packed formats of traditional sports. Organisations will have to innovate via format and rule changes, whilst captivating younger audiences through excellent online content, social media engagement and live experiences. 

Impact on the sports industry now: Declining interest in sport from younger generations is forcing organisations to begin their digital transformation to attract, retain and diversify fanbases & player pools. 

Impact that we expect to see by 2030: The future customer will dictate what new sports will become mainstream and how existing formats need to evolve. Delivering the right fan experience will continue to be a non-negotiable.  

2. Evolving global sports market 

The sports industry will continue to grow beyond its current commercial value of $500-600bn. The number of sports seeking to commercialise is increasing at an unprecedented rate and organisations will explore innovative ways to expand their revenue generation models. By 2030, private equity investment will be the major catalyst for change and commercialisation across sports. 

Impact on the sports industry now: Sports organisations are looking to commercialise in order to generate how revenue by boosting customer acquisition and retention. 

Impact that we expect to see by 2030: Investment in sport will enable organisations to have undertaken transformations, innovate and evolve to become entertainment entities. 

3. Pace of digital  

Digital innovation continues to yield new ways for people to play, consume and engage with sport. As a result, many ad-hoc initiatives are being driven through technological advancements. Keeping pace with digital is a major challenge and sports organisations must be agile in order to rapidly respond to grow and counteract disruption.  

Impact on the sports industry now: Sports organisations are going back to basics as the first step in their digital transformation, by establishing robust foundations with key capabilities that will enable their digital aspirations. 

Impact that we expect to see by 2030: Digital will be embedded in all aspects of sport, resulting in numerous use cases. Organisations will need to become data-obsessed and digital first in how they operate.    

4. Societal impact  

Societal demands are forcing sports organisations to redefine their views on equality, diversity and inclusion. From a participation standpoint, female sport will flourish with the aid of watershed moments like the success of the Women’s Euro 2022 Championship. Societal shifts will also mean that the structure of sports organisations will evolve, with a growing focus on building an inclusive industry for workers, players and fans. 

Impact on the sports industry now: Increased focus on societal issues and high-profile incidents has resulted in organisations taking a stance, grasping the potential for sport to act as a catalyst for societal change.  

Impact that we expect to see by 2030: Female representation in sport will be higher than ever before. More women will participate, including in traditionally male-dominated sports like football, cricket and rugby. The make-up of sports organisations will also evolve, as organisations will look to be more purpose-driven and be at the heart of broader societal change. 

5. Health and wellbeing  

Physical health is already a concern for many and this was exacerbated by the pandemic. Moreover, lockdowns highlighted the benefits of exercising and team sports due to the rise in mental health issues. Increased awareness and new sports formats will therefore play a role in boosting interest in sport and participation rates in the future. 

Impact on the sports industry now: Health is top of mind, particularly for younger generations post-pandemic. Disease prevention as a priority, increased from 22% to 28% between2020-2021 for both Millennials and Gen Z. 

Impact that we expect to see by 2030: Greater health awareness will drive more young people to exercise and play sport.  

6. Climate change and sustainability  

Climate change and sustainability are impacting consumer and societal expectations, with an emphasis on individuals and institutions taking a more environmentally conscious approach. The sports industry can be the catalyst in responding to and driving initiatives, if it wants to be, due to its ability to transect geographies and cultures. 

Impact on the sports industry now: It’s estimated that the sports industry contributes 0.6-0.8% to total global carbon emissions, with a carbon footprint equivalent to Spain. 

Impact that we expect to see by 2030: A changing climate will have a serious impact on how, when and where sport can be played. Governing bodies will need to play a leading role in developing policy accordingly. 

To receive the full overview of these forces for change, email: UKDeloitteSportsBusinessGroup@deloitte.co.uk

Fans  

Traditional sport, it seems, is increasingly struggling to connect with younger generations.  

Only 23% of Gen Z describe themselves as passionate sports fans, compared with 42% of millennials, according to a survey assessing sport fandom in America; a significant fall and one that looks set to decline further in the next decade.  

An additional survey highlighted that 35% of US parents with children born from 2013-2017 said they lost interest in sports during the pandemic.  

In response, sports organisations are rapidly spinning-up digital platforms and personalised products aimed at attracting, retaining, and diversifying their fanbases.  

According to YPulse research, 70% of 13-37 year olds say that they don’t need to watch sports events to keep up with what’s going on. Many prefer to watch highlights or bitesize content rather than a full match. We’re also seeing growth in the type of content that audiences enjoy, with a greater variety to watch live or on streaming channels than ever before.  

Whilst younger generations’ appetite for watching a full match is declining, content consumption as a whole is increasing, with 30-60 minute streaming platform series and social media content growing in popularity. As a result, there is a rush amongst clubs, leagues and governing bodies to respond to fans’ insatiable demand for content by partnering with OTT platforms to produce docu-series.  

Traditional sports formats are also changing to appeal to a wider spectrum of generations and fans. The Hundred (cricket), super tiebreaks (tennis), RugbyX and 3x3 basketball are all examples of the shifts in fan preferences, resulting in new formats and rules being applied to traditional sports. Supplemented by slick digital content and social media engagement, format innovation is targeted at appealing to younger audiences’ preferences and habits.  

Stadium experiences are also transforming to meet fan expectations, with technological, sustainability and safety related enhancements at the core. Bringing the live stadium experience closer to those who can’t or won’t attend (with international and sustainable minded audiences) is also becoming an increasing focus for organisations looking to grow their fanbases. Digitally connected stadia and virtual/augmented reality in-home experiences will complement the fan experience, but these must be seamless and deliver real fan value to become truly mainstream and there is much work to be done here. 

Players  

Around half of Gen Z males in the US spend more time following non-traditional sports than traditional sports. This is challenging ‘traditional’ sports to evolve to attract younger audiences. The introduction of new Olympic sports in Tokyo 2020 and Paris 2024, such as climbing, skateboarding, surfing and breaking, is a direct response to the growth of these sports and aiming to draw younger and more diverse audiences to engage with the Games.  

A common denominator of high-growth sports is their more compact and action-packed format when compared with traditional sports. For example, Padel – a form of tennis played in an enclosed space – is the fastest growing sport in the UK with younger players finding it more exciting, sociable and easier to play than tennis.  

With participation and player dynamics changing, sports organisations are having to go back to basics to develop core digital capabilities to increase recruitment and retention of grassroots players. Making it easy for people to sign-up, find and book facilities online will be paramount to increasing participation as users expect a frictionless experience.  

Workforce  

Younger generations are growing up in a ‘purpose-focused’ world, challenging brands to reflect their values such as a commitment to sustainability, equality and inclusion. The race for talent is likely to continue at pace and younger generations in particular will seek out roles in sports organisations that have an authentic purpose and an inclusive working environment.  

The race for talent is likely to be particularly competitive for digital experts as new entrants and new innovations enter into the market. Private equity investment is playing an increasingly active role in professional sport and this is likely to soon filter down to grassroots sport, too. 

As the commercialisation of sports organisations develops, particularly at a grassroots level, the profile of full-time employees and volunteers within a workforce will also change.  

Sports organisations must embrace the change and importantly put themselves in a position where they are agile to respond to the changing demands of the next generation. 

The next decade will be crucial in determining the future success and legacy of some sports. Whilst the future consists of many uncertainties and potential challenges, it also will provide great opportunities for the sports industry to take an active role in addressing the next generation’s most pressing concerns: climate change and sustainability, health and wellbeing, and societal issues. 

Alice John, head of economic growth and development advisory in Deloitte's Sports Business Group, spoke on the panel The Future Fan at Host City 2022