Sports Media is More Popular Than Ever

I recently read in one of the trades that we are currently in the ‘golden age’ for sports media. The main point is that sports have surpassed all other forms of video content in their ability to deliver to audiences in real time.

This is very true.

The article said that streaming platforms getting into the sports media biz is also a positive development. These hyper-competitive and yet-to-be-consolidated providers of entertainment to consumers are going beyond dipping their toe into TV rights deals for sports programming. Said programming includes rating fertilizing sports documentaries that are wildly popular with fans and non-fans alike.

This is kind of true.

The fact that sports represent the most valuable, non-time-shifted programming asset on any given video platform is, without a doubt, a sign that sports are at their most valuable apex in history. The industry is responding in what I would characterize as appropriate and typical. They are maximizing profits, seeking new areas of revenue growth, and looking to expand distribution. Rights fees for sports programming are priced at a premium.

For live sports, viewership remains healthy. All of the professional leagues and college sports are posting solid ratings numbers. New sports and women’s sports are also seeing significant audience growth. Keep in mind too that these games are broadcast in what can only be described as a fragmented provider landscape. Advertisers are rightfully attracted to non-time-shifted programming with highly engaged audiences. As we continue down the chord-cutting path, streaming services see value in sports programming to retain subscribers, grow subscribers, and enhance ad revenues.

But wait, there’s more.

We can’t discuss sports media’s ascension without acknowledging the role legalized sports gambling has played. According to SportsPro, gaming revenue increased 24% in 2024 to $13.7B. Mobil technology has led to the proliferation of online gaming sites that spend hundreds of millions of dollars convincing us that betting on sports is a good idea.

Gambling on sports has made information and insight more valuable than ever, which leads us to yet another sign that sports media is crushing. Big personalities who have managed to transcend their position on a particular network have demanded and received big contracts. Also, their ability to speak to relevant audiences on digital platforms has increased their worth to astronomical levels.

Yet another new development in the world of sports is private equity’s move from its historical minority position in professional sports ownership to a more prominent funding mechanism for everything from capital improvements to player recruitment for college teams.

Where this goes is where I start to have a problem. Huge contracts for singular media types, coupled with inflated rights deals, spell future trouble for the current rights holders. These issues, in addition to advancements in technology that some media companies have kept up with and others have not, will force significant change in the very near future for sports.

Sports will undoubtedly continue its move from traditional forms of media to streaming platforms. Everything about streaming services is different from the cable/broadcast model that has a tenuous hold on current rights deals. Streaming services tend to run leaner and in doing so may struggle with the high dollar value coupled with the long-term nature of league-driven rights deals.

Private equity is not new to sports, but its increasingly expansive role is not a positive one. PE chases money, and its very nature is not a long play. In my opinion, unbridled private equity in the world of sports may be great in the short term but potentially problematic in the long run.
And gambling? Sports has seen the benefits of increased engagement and revenue relevant to gambling advertising revenue but we have yet to see what legalized gambling does to the purity of the game. Sports is reality TV at its finest and money tends to make things a little less real.

It will be interesting to see how everyone fares including the consumer which, when dealing with an entity that’s experiencing a ‘golden era’, can be an afterthought.

I, for one, will take a front-row seat to watch.

If you have a properly structured, priced, and executed sports sponsorship with a team, league, or sports network … you are doing just fine. You are in a good position with a form of entertainment that is enjoying a high degree of engagement.

An unpredictable future would lend itself to shorter-term contracts and greater engagement with my rep and their leadership team. Contingencies should be discussed, analyzed, and agreed upon where things may change during a contract. In my opinion, this is not a bad thing, just a necessary one.
If you don’t feel comfortable having these conversations or exploring what the future may hold then conferring with an outside expert may be a good next step.

Ed has over 25 years of sports marketing experience. If you’re looking for some assistance with your sponsorship efforts, contact him at ed.olsen@linedrivesportsmarketing.com or call his cell at 602.284.6722.