Sports Economy: The Rise Of A Game-Changer Economy 2024

Asia-Pacific is the leading region in terms of sports economy growth, achieving an average growth rate of 9.4%, significantly higher than North America and Europe. Where are the opportunities for the Vietnamese sports industry to keep up with the times?

Lionel Messi, considered one of the greatest footballers, ranks among the highest-earning football players globally, with an annual income of approximately $120 million USD. Notably, nearly half of this amount comes from sources outside of football.

During the 2021/22 season, the English Premier League contributed to the UK economy with a sum of up to £8 billion. Of this, £1.7 billion came from taxes paid by players and staff of the league.

In many countries, the sports economy has become a “golden egg” industry. Unlike common belief, the sports economy not only involves training and competition but also includes player transfers, tourism services, advertising, media rights, radio, television, and more. This demonstrates the strong potential for development in the sports economy, opening up numerous business and investment opportunities.

Impressive Turnaround Stories from Cities

• Thailand

Buriram, a province in Thailand near the Cambodian border, was previously considered a poor area, relying mainly on agriculture. Many tourists only stopped to visit Phanom Rung and then chose to move on to larger cities instead of staying in Buriram.

It wasn’t until 2009 when the former Deputy Minister of Agriculture and Rural Development of Thailand, Mr. Newin Chidchob, invested in the Buriram United Football Club. The decision to invest in the Buriram team – located about 400km from Bangkok – was a bold move. Thanks to the development of football, Buriram has impressively turned around to become the “happy city” of Thailand as it is today.

It is estimated that Buriram United and its sports service ecosystem attract up to 1.8 million tourists per year. From 2009 to 2016, tourism revenue in Buriram province increased from 808 million baht to 2.4 billion baht, with tourist numbers tripling since Newin Chidchob invested in Buriram United.

• China

According to the Ctrip tourism platform, bookings related to outdoor sports in China increased by 79% in the first half of 2023 compared to the same period in 2022.

At the Boao Entrepreneur Forum 2023 recently held in Hainan, Chinese entrepreneurs and experts said, “The successful hosting of the Beijing 2022 Winter Olympics has sparked enthusiasm throughout the winter season.”

In addition to famous locations, the Village Super League football tournament, also known as “Cun Chao” according to Chinese netizens, has attracted attention nationwide. This is a grassroots football tournament combined with a performance of local culture.

As a result, “Cun Chao” stimulated the sales of local agricultural products to reach 401 million RMB. Moreover, nighttime consumption increased by 362.5% compared to the same period last year, reaching 309 million RMB.

Significant Figures from Sport Marketing

• Social Media Promotion

In 2022, the collaboration between Louis Vuitton and superstar footballers Lionel Messi and Cristiano Ronaldo caused a sensation in the community, especially among football fans. The image of the two “arch-rivals” gathered in the same photo created a tense atmosphere like in a chess match, with the highlight being the monogram-patterned suitcase characteristic of the Louis Vuitton brand.

Louis Vuitton cleverly leveraged the appeal of Messi and Ronaldo to attract public attention and create a massive media wave. This post not only attracted interest from the football fan community but also from fashion enthusiasts. This helped the photo become one of the most interacted posts during the 2022 World Cup season, marking a significant milestone in the integration between the sports and high-end fashion worlds.

• Highlight Videos

Highlight videos are one of the trendiest forms of sport marketing today. This is the most popular content form that fans are interested in and enjoy when following match information. They can quickly review remarkable moments in highlight videos to better understand the match’s progress and immerse themselves in the suspenseful, dramatic atmosphere.

Furthermore, post-match highlight videos are carefully edited with beautiful angles, making it easy for viewers to follow and enjoy spectacular moments. With the development of Sport Marketing trends, within just 7 days, a highlight video of Scott Mctominay’s goal for Manchester United attracted 3 million views.

By leveraging online platforms like YouTube, football clubs also have the opportunity to build their brands on social media. Sharing highlight videos helps create rapid dissemination and enhances interaction among fan communities, thus creating a rich and vibrant online sports ecosystem.

Opportunities for Vietnam

Entering 2024, the sports industry in Europe will continue to witness the return of famous tournaments such as the Premier League, UEFA Champions League, Bundesliga, and especially the UEFA EURO 2024 football championship and the 2024 Summer Olympics (Paris Olympics).

On June 3, the General Department of Sports and Physical Training, the Central Economic Committee, and the Vietnam Olympic Committee organized the Vietnam Sports Economy Forum 2023 with the theme “Leveraging the potential of the sports economy in the new era.” Mr. Nguyen Manh Hung – the Central Economic Committee – stated that businesses could take advantage of opportunities to host major international sports events to build their image, develop goods and services, and promote media and tourism for the country.
 

Recently, the “The Play Book” report by PrettyGreen revealed the entertainment trends for 2024. According to the report, entertainment preferences and spending habits of users are shifting from bars to physical activities like marathon running.

Specifically, the report predicts a decrease of 9% in time spent and 5% in spending at bars, pubs, and clubs in 2024. Conversely, dynamic entertainment activities are expected to increase by 31% in time spent and 17% in spending in 2024. Millennials and Gen Z are leading this trend, showing an increasing interest in health and physical fitness. However, in Vietnam, sports are still seen as a non-economic, non-business social activity. There are still untapped “gold mines” such as the ticket market and revenue from organizing sports activities, and sponsorship advertising markets…

Therefore, this year is expected to be an explosive year for the sports economy in general and the sports industry in Vietnam in particular. Startups can take advantage of the potential of the sports economy market to create new and attractive user experiences while attracting attractive business opportunities.

For more information on the entertainment economy and emerging economic models, read the Vietnam Open Innovation Ecosystem Report 2023. The report provides strategic databases for businesses in Vietnam, synthesising potentials and challenges for enterprises and corporations through detailed analysis of global trends in innovation and technology, as well as specific situations in Vietnam. Additionally, the report proposes methods and guidelines to support businesses in promoting the innovation process.