Sports is no longer simply a business; it is a big business.
Moreover, as a business, it is still growing financially and is still
far from reaching its maturation point. Much of the present
financial growth is tied to leveraging existing technologies and
devising new ones. Participants in the business of sports
aggressively pursue alternative sources of revenue in an effort to drive earnings.
Traditionally, revenue platforms in the sports sector consist of: (1) gate revenues for live sporting events; (2) rights fees paid by broadcast and cable television networks and TV stations to cover those events; (3) merchandising, which includes the selling of products with team and/or player logos; (4) sponsorships, which include naming rights and payments to have a product associated with a team or league; (5) actual team ownership; and (6) concessions.
More recently, other revenue streams such as from the
internet, satellite, or mobile phone subscriptions to sports events or programming are pushing sports toward programming content designed as a means to secure greater revenue. Participants in the business of sports are looking at various angles to make money. Among these participants are state and local governments seeking to generate revenue either directly or indirectly through maintaining and attracting professional sports franchises.