One thing moving markets…

… is the price for admission to sporting events, which was up 15.1% year-over-year according to June’s Consumer Price Index (CPI), significantly outpacing nearly every other component.¹ After record-breaking sporting event attendance in 2023, consumers are still ready to hit the stands.

The economics of sports tourism

Sports tourism in the U.S. hit a home run in 2023, with $52.2 billion in direct spending and $128 billion in total economic impact, while supporting more than 750,000 full-time and part-time jobs.² Globally, the sports tourism industry was valued at nearly $588 billion in 2022, and is expected to grow 17% by 2030.³ 

Increased sports attendance benefits the economy by boosting revenue, both at the local and regional levels. Across the board, it generates significant income through the National Football League (NFL), National Basketball Association (NBA), and similar sports teams, including at the collegiate level.

Zooming out, sporting events contribute large amounts of revenue to the broader economy through broadcasting rights, sponsorships, and ticket and merchandise sales, and as such, can serve as one indicator of consumer sentiment.

 The sports industry also significantly influences tourism, supporting local businesses, hotels, restaurants, and transportation services during major events. Meanwhile, global spectacles like the Olympics, FIFA World Cup, and Super Bowl attract spectators and viewers worldwide, further enhancing their economic impact.

A slam dunk for sports attendance

Sporting events and attendance always carry an economic impact, but 2023 was an all-star year, as the NBA, National Hockey League (NHL), Major League Soccer (MLS), National Women’s Soccer League (NWSL), and tennis’ US Open all hit record attendance levels.⁴ Major League Baseball (MLB) also posted its best year since 2017, while the NFL saw its average stadium crowd size grow to its highest level since 2004.⁵

Halfway through 2024, the upward trend in sports attendance appears to be  on track. After a significant increase in attendance in 2023, the MLB is still seeing 2% year-over-year gains.⁶ Meanwhile, the Women’s National Basketball Association (WNBA) started its 2024 season with a spike in viewership and ended May with its highest-attended opening month in 26 years.⁷

The 2023-24 NBA season set a total attendance record, with 71% of games sold out.⁸ Additionally, this year’s NFL draft was the most-attended event in the league’s history, suggesting the upcoming season could see a similar trajectory.⁹

The cost to the consumer

Attendance figures are rising despite the prevalence of “funflation” – a term economists use to explain the increasing price tags of live events.¹⁰

New Empower research reveals more than a third of Americans (35%) are spending on live entertainment like sporting events while traveling.

Ticket prices vary significantly across sports and regions in the U.S., but according to data from March 2024, Massachusetts is the most expensive state with an average of $236 per ticket, while Michigan offers the cheapest tickets on average, at $101.¹¹

The priciest professional sport overall is football, with tickets averaging $297, followed by basketball at $165, and soccer at $105. Baseball threw a curveball, coming in as the cheapest sport to attend, with an average ticket price of $79.

Olympics attendance and viewership

The 2024 Paris Olympics expected to attract billions of television viewers and bring 2.3-3.1 million unique visitors to the city.¹²

Consistent with those billions of viewers, a large chunk of the event’s overall revenue will stem from broadcast rights, which generated $3.1 billion during the 2020 Summer Olympics in Tokyo.¹³ Overall, the games this year are expected to generate between $7.3-$12.1 billion in net economic impact.

The luxury tourism sector will also likely benefit from the games. Some travelers are purchasing Olympic luxury packages worth hundreds of thousands of dollars. Top hotels like Le Royal Monceau Raffles Paris have suites booked at rates as high as $27,000 per night, while demand for premium travel services like superyacht charters and personalized itineraries is soaring too.

The 2024 Paris Olympics will surely still drive significant economic activity in the region, likely benefiting many local businesses, while of course captivating viewers all around the world.

And a few top headlines

The podiums Olympic medalists will be standing on this year are made from recycled food containers by a startup called Le Pavé.¹⁴

• The company develops its products from 100% recycled plastic. It also made 11,000 bleacher seats for two nearby sports arenas using bottle caps and shampoo bottles.

Uber announced it is rolling out new travel features that allow users to see the average wait times and prices in more than 10,000 cities worldwide.¹⁵

• These features are intended to make summer travel and airport trips easier by giving users more information regarding specific dates and routes.

The latest CPI inflation data showed prices falling 0.1% in June, the first negative move — or deflating — in more than four years.¹⁶

• The data also showed a 5.1% year-over-year decline in airline fares and 3.8% monthly decline in gasoline prices, building more market confidence that the Federal Reserve may cut rates in the second half of 2024.

Tennis’ US Open returns to New York next month and 2024 prize money is expected to be announced soon.

• Last year’s singles winners took home $3 million each in prize money – a 15% increase from 2022. Defending champion Coco Gauff holds the top spot as the highest paid female athlete, earning $6.7 million in winnings and $16 million in endorsements last year.^17,18