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Sports Economy Set to Reach $8.8 Trillion by 2050, But Physical Inactivity and Climate Threats Risk Billions Without Urgent Action
Businesswire· 2026-01-15 09:10
Core Insights - The sports economy is expected to reach $8.8 trillion in annual revenue by 2050 [1] - Rising physical inactivity and climate risks could threaten up to $517 billion of this revenue by 2030 [1] - Without coordinated multistakeholder action, potential losses could escalate to $1.6 trillion by 2050 [1] Revenue Projections - The projected annual revenue of the sports economy is $8.8 trillion by 2050 [1] - Potential revenue loss due to inactivity and climate risks is estimated at $517 billion by 2030 [1] - Long-term losses could increase to $1.6 trillion by 2050 if no action is taken [1]
How Basketball Is Powering Africa's Sports Economy | Bloomberg Next Africa
Bloomberg Television· 2025-10-25 05:00
Africa Sports Economy Growth and Investment Opportunities - Africa's sports market is currently valued at over $2 billion and is projected to exceed $20 billion by 2035, indicating substantial growth potential [22] - The NBA is increasing its investment in Africa, aiming to expand its regional league, develop local talent, and increase franchise sales [4] - Institutional investors are showing growing interest in Africa's sports and entertainment markets, seeking opportunities for recurring income and predictable revenue streams [2][21] - NBA Africa has generated nearly 40,000 jobs and $250 million in GDP within its first four years of operation across four countries, demonstrating the economic impact of sports investment [8] Key Factors Driving Investment - Demographics: The UN estimates that 40% of the world's young people will reside in Africa in just 25 years, presenting a significant opportunity for sports development [5] - Technology: The integration of technology with demographics and urbanization is reducing business costs and expanding addressable markets across various industries in Africa [44][46] - Infrastructure Development: Building more NBA-standard arenas in Africa is crucial for unlocking the continent's sports potential and attracting further investment [10][12] Investment Strategies and Returns - Helios Investment Partners emphasizes identifying opportunities, building strong businesses, and transitioning them to public markets or strategic buyers [47] - While Helios has significant investments in technology (with returns of eight times cash and an IRR of 60%), sports investments are still in early stages, with smaller amounts of capital deployed [33][35] - Silverbacks Holdings invests in sports teams, including a team in South Africa's Basketball Africa League (BAL), and fighting leagues in Nigeria, seeking to capture foreign-based revenues [27] Target Markets and Expansion Plans - NBA Africa is focusing on markets like South Africa (strong media market and purchasing power), Senegal and Nigeria (talent pool), and Angola (strong basketball culture) for expansion [13][14][15] - East African countries like Rwanda and Kenya are also showing potential, with Rwanda investing heavily in sports infrastructure and Kenya having its first BAL team [16][17]