Sports rights fees are expected to rise at a healthy 9.1% compound annual growth rate to $19.3 billion in 2018 from $12.5 billion in 2013, according to consultant PricewaterhouseCoopers.
According to its report At the Gate and Beyond: The Outlook for the Sports Market in North America through 2018, PwC believes that overall sports market will grow at a 4.5% clip annually from $56.9 billion in 2013to $70.7 billion in 2018. Media rights are expected to make up the largest part of that overall pie.
Other segments are expected to grow at healthy rates over the next five years, with gate revenue rising 2.6% annually to $19.7 billion in 2018 vs. $17.3 billion in 2013; sponsorship revenue us 4.8% to $17.6 billion from $13.9 billion, and merchandising revenue up 1.4% annually to $14 billion from $13.1 billion.
Underscoring the importance of media rights was the announcement earlier today that ESPN and Turner Broadcasting have renewed their rights deals for National Basketball Association games, a nine-year pact estimated to be worth a collective $24 billion.