The 2025 FIFA Club World Cup in the U.S. offered a stark warning for the sports industry: rising temperatures are beginning to hit both players and fans. Midday matches in California left athletes struggling and spectators faint from heat, a scene Paris Saint-Germain coach Luis Enrique described as “clearly influenced by the temperature.”
A new report from the World Economic Forum (WEF) and Oliver Wyman warns that these climate disruptions are more than a short-term inconvenience—they could erode the projected $3.7 trillion global sports economy by up to 18% in the coming decades.
The Sports Economy Under the Lens
The WEF report defines the sports economy as more than professional leagues. It spans participatory sports, sporting goods, sports tourism, and associated industries like broadcasting, wearable devices, nutrition, and gaming. Revenue in these sectors is set to soar—from $2.3 trillion in 2025 to $8.8 trillion by 2050—but climate change and declining physical activity threaten to slow growth.
“Over 90% of media rights and 76% of sponsorship revenues in professional sport are linked to outdoor activities,” the report notes. Extreme weather can force cancellations, disrupt broadcasting, and diminish the overall appeal of sporting events. Amateur participation also suffers, as heat, air quality, and unsafe conditions deter players.
The Double Threat: Climate and Inactivity
Beyond immediate weather impacts, environmental instability is curbing global activity levels. Worldwide, 31% of adults fail to meet recommended exercise levels, and nearly 60% want to be more active. Unfavorable weather ranks among the top barriers. For sports businesses, fewer participants and fans directly threaten revenue.
Building a Sustainable Sports Economy
The WEF report frames sustainability as a strategic imperative. Core sports industries currently produce 400–450 million tonnes of CO₂ annually, primarily from travel, facility maintenance, and goods production. Transitioning to circular models—recycling equipment, offering rentals or subscriptions, and minimizing water use—can cut emissions while maintaining growth.
Urban planning also plays a key role. Integrating green spaces, waterways, and sustainable sports facilities into cities can encourage activity while reducing environmental impact. The report cites Romagna, Italy’s “Wellness Valley,” where partnerships between civic leaders and Technogym have lowered local sedentary rates to 15%—well below the national average.
The Opportunity for Sports Investors
The growth of the sports economy, projected at a 10% CAGR through 2030, offers a chance to embed sustainability into the business model. Sponsorships aligned with environmental values, eco-friendly infrastructure investments, and public-private partnerships can enhance resilience while protecting profits. Formula 1’s partnership with DHL, using alternative fuels to lower emissions, is one existing example of this approach.
The takeaway for leagues, brands, and sports startups is clear: climate change is not just an environmental challenge—it’s a business risk. Investing in sustainable practices isn’t philanthropy; it’s protecting the future of the sports economy itself.