Ozanian writes that, “Sports is not simply another big business. It is one of the fastest-growing industries in the US, and it is intertwined with virtually every aspect of the economy” (Ozanian, 1995, p. 2).
According to data reported by Helitzer (1996), sports are the twenty-second largest industry in the US with annual revenues in excess of $100 billion. As for professional team sports, the value of the 107 [now 113]
The Evolving Television Sports Marketplace 89 franchises in the Big Four leagues was estimated to be $11.4 billion in 1994, a value estimated to increase to “unimaginable levels” in the next few years (Worsnop, 1995, p. 123).
The television industry obviously contributes a substantial portion of the value of professional teams. In the NFL, for example, media revenues (with the vast majority coming from television) constitute approximately two-thirds of total team revenues.
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Although the other leagues are not as yet so television-reliant, MLB and NBA teams derive over one-third of their revenues from media (Schaaf, 1995, pp. 103-05).
In addition to direct financial impact, the telecasting of sports events has provided leagues with the wide exposure essential to the merchandising of team names and logos, one of the fastest growing revenue streams in sports.
Team and league licensed merchandising is now a $13 billion a year business in sales as compared to the approximately $10 billion a year spent on television sports rights (Helitzer, 1996, p. 5).
The importance of merchandising is such that teams consistently modify the style and colors of their logos and uniforms in order to enhance sales (Lans, 1995). The success of merchandising is one reflection of the continuing and growing popularity and power of sports.
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This revenue stream not only supplements television money, but is built off it. In addition to merchandising, sports entities are increasingly adept at increasing their revenues through playing facilities and integrated marketing schemes.