The global sports economy is under significant threat from climate change and rising physical inactivity, according to a new report by the World Economic Forum (WEF) and Oliver Wyman. While the industry is projected to grow to $8.8 trillion by 2050, it could fall short by $1.6 trillion if these challenges are not addressed.
Key Threats to Growth
- Climate Change: Extreme heat, flooding, and pollution are disrupting elite events and grassroots sports. Supply chains, particularly in Asia, are also vulnerable to water shortages.
- Physical Inactivity: The report warns that by 2030, one in three adults will be inactive. This shrinks the “consumer base” for sports tourism, equipment sales, and long-term fan engagement.
Growth Drivers and Opportunities
Despite the warnings, the industry remains an attractive “asset class” for investors. Key growth areas include:
- Women’s Sports: Rapidly moving into the mainstream with rising team valuations.
- Sports Tourism: High demand for “play-and-watch” packages for events like the 2026 World Cup.
- Institutional Investment: Private equity continues to flow into European football and US leagues (e.g., the $10bn valuation of the LA Lakers).