Emerging Economies in Sport – Thematic Intelligence

Emerging Economies in Sport Thematic Overview

Historically, the global economy was largely dominated by the European and North American countries, however, the landscape has been slowly shifting in the last couple of decades. Certain Asian countries, including India and China, have been growing their economy rapidly and are starting to play a bigger role. The growth of the Chinese business market is staggering. The country now boasts some of the most valuable and profitable companies in the world, notably Alibaba and Tencent.

The emerging economies in sport thematic intelligence report assesses how emerging economies, combined with other emerging technologies, can be used across the sports value chain. It provides an overview of the current landscape, key players, and highlights opportunities for the emerging economies in the future. The report also provides an industry-specific analysis based on GlobalData databases and surveys.

Emerging Economies in Sports – Key Trends

The main trends shaping the emerging economies theme over the next 12 to 24 months are event hosting, hosting of niche sports, globalization, hosting legacy, geopolitics, and human rights controversies. Hosting sporting events is a complicated and expensive process and host nations are decided years in advance. Decisions are usually based on the safety and stability of a country, as well as its infrastructure. While there are many benefits to hosting events, such as the money generated by visiting tourists and the general improvements to the public infrastructure required to handle significant numbers of visitors, the cost of events can be seismic and some economies have buckled completely under the pressure, such as Greece with the 2004 Olympics.

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Emerging Economies in Sports – Industry Analysis

Geopolitics continues to play a significant part in the world of sports, with large events often shaping the place and participants of events. For instance, Russia’s invasion of Ukraine has set them back in the world of sports by several decades, and it will be a long time after the resolution of the conflict that Russia may be allowed to participate again in global sporting events. The Russians have effectively been frozen out of much of the world of professional sport, with their teams being ejected by several continental and global federations. The invasion also led to the termination of sponsorship deals with Russian brands worth millions of dollars, most notably Manchester United’s deal with Russian Aeroflot.

The emerging economies in sports industry analysis also covers:

• Timeline

Sports Industry Revenue 2019-2025

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Geopolitics Value Chain Analysis

The primary revenue generator in the emerging economies sector in relation to sports is the hosting of events, which generates significant money through tourism. Other revenue generators include sponsorship deals, where brands will pay money to partner with an event, and attendance, which generates revenue through selling tickets to an event.

Tourism: Sports tourism is vital to certain economies around the world, and many countries rely on the vast amounts of business coming to their countries. Depending on the scale of the events as well as the cost of infrastructure upgrades, these cities become reliant on ensuring large amounts of visitors come to the city to make back the money that was spent.

Geopolitics Value Chain Analysis

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Leading Players in Sport

Leading listed players associated with this theme are:

• Alibaba
• IPL
• NBA

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Emerging Economies in Sport Market Report Overview

Scope

This report provides:

• Key breakdowns on which emerging economies have made the most inroads and how.
• Identification of the key sporting developments in some of these countries through a number of different sports.
• A look at whether the developments of some of these sports have been a failure or a success in different emerging economies.
• A detailed look at the emerging economies value chain, and how significant value can be generated by hosting events.

Key Highlights

An emerging economy can be loosely defined as a country that is rapidly becoming a developed nation through quick economic growth and a significant expansion of trade and investment flows. While many may disagree on the exact definition of an emerging economy, the International Monetary Fund classified the following countries as emerging economies in 2018: Brazil, Chile, China, Colombia, Hungary, Indonesia, India, Malaysia, Mexico, Peru, Philippines, Poland, Russia, South Africa, Thailand, and Turkey.

China has established itself as one of the global leaders in business within the last decade. Many companies and organizations are desperate for a piece of the country’s market share, with companies like Alibaba and Tencent becoming industry leaders in technology and entertainment. However, maintaining a stable relationship with China and its government has proven difficult for some, with the NBA experiencing difficulties in their previously fruitful relationship with China following a pro-Hong Kong tweet from former Houston Rockets general manager Daryl Morey.

India has been named among the more desirable emerging economies for investors to invest in, due to its economy holding out strongly in times of economic versatility. Indian Prime Minister has pledged to make India a $5 trillion economy by 2024/25, although a report from Deloitte India indicated that more legal reforms need to be made for this to occur, particularly in the manufacturing sector. The bulk of investments in the country has been driven by the services sector, with manufacturing only attracting roughly a third of the money that has gone in into services. Of the 1,200 business leaders surveyed by Deloitte for the report, the majority stated that India was a more challenging country to conduct business in, more so than other nations on the continent including China and Vietnam. This is largely due to inadequate infrastructure and low institutional instability. Despite these issues, India is still a region that holds many attractions as an investor, and the investment field will likely improve as regulation becomes less rigid.

The best way for African nations to develop is to improve the level of infrastructure, but this is easier said than done given the associated costs. In the wake of Morocco’s success, stories have emerged concerning the country’s significant investment into better facilities, which culminated in the opening of the Mohammed VI Complex in Maamoura in 2019, which was built after a sizable investment of nearly $70 million by the Royal Moroccan Football Federation. The facility is the largest of its kind on the continent and houses four state-of-the-art pitches, three artificial pitches, a room that can host futsal matches, as well as an Olympic-sized swimming pool and two tennis courts, among other things. Morocco’s success has also been reflected at the club level where two domestic sides are the current champions of the CAF Champions League and the CAF Confederations Cup champions. Morocco must be the blueprint that other African nations strive to follow, but this will be difficult with a lack of investment. Some African federations are also plagued by chaotic management and disorganization, which will only continue to hinder African soccer.

Reasons to Buy

• For those wanting an in-depth analysis of the intersection between various emerging economies and the sporting ecosphere.
• Discusses how developing news stories can have wide-ranging effects on all aspects of the sporting world.
• GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying important themes early, enabling companies to make the right investments ahead of the competition, and securing that all-important competitive advantage.