Common Issues with Revenue Generated from Broadcasting Right
February 12, 2025
The economics of sports leagues is quite complicated. This is because of various factors. However, two of the most important factors are: The revenue is generated at the central level i.e., by the franchisor, and at the franchise level as well i.e. local revenue. For instance, broadcasting rights are monetized at the central level. However, […]
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The sporting industry has undergone a lot of changes in the recent past. These changes have been related to various aspects of the sporting industry. However, technology has been the driving factor behind most of these changes.
Technology has completely transformed the sporting industry and the impact of this transformation has also been felt in the financial aspects of the industry.
In this article, we will have a closer look at some of the ways in which technology has impacted the sporting industry.
Newer sources of revenue such as revenue from digital ad sales and fantasy gaming have come into the picture. Hence, the top line of every sporting franchise is being impacted by technology. It is essential for any sporting franchise to closely monitor the technological trends in order to stay abreast with the latest changes.
Technology has made it possible to stay in touch with the fans using new and innovative ways. Fans are able to connect with their favorite sporting stars via multiple social media channels. They are able to stay in touch with the practice and fitness routine of these stars through social media as well as other channels. This helps create a feeling of connection and engagement. This connection and engagement are reflected in the brand value of the sporting franchise.
The root cause of counterfeiting is the lack of a public record about the authenticity of the memorabilia. Blockchain technology provides the capability to maintain public records which can help determine the authenticity of memorabilia. Hence, blockchain technology is being used on a large scale to prevent counterfeiting and revenue leakages.
When star players are performing well and the team is winning, the revenues tend to go up. However, in the past, there have been issues wherein the team management has over-exerted certain players which has caused injury to them. As a result, they have not been able to participate in the games for some time leading to revenue loss. However, this can be avoided with the advent of technology.
Modern-day technology includes certain types of wearables and advanced scans which can help predict injuries before they occur with a high degree of accuracy. This technology is being widely used by sporting franchises in order to ensure that their revenues are not unexpectedly impacted by injury.
Advanced technology is available that can help predict weather at a certain location. This technology can be used to ensure that the scheduling is done in such a way that the weather does not interrupt play.
Now, there are various types of sensors available that collect data during practice sessions. This data is automatically fed into a system that analyses player performance and helps the talent scouts identify promising players.
The end result is that the team can easily identify new talent and then greatly enhance their performance. This helps the team create better players at a lower cost which eventually helps the financials of the sporting franchise.
However, now e-sports have become a major phenomenon with large-scale competitions. Also, since some of the intellectual property of sporting franchises is used by e-sports such as the name of the team, name of players, and player statistics, sporting franchises can derive some royalty revenue from e-sports.
The increasing popularity of e-sports is leading to increased revenue for sporting franchises across the world.
Hence, it can be said that technology is impacting the performance of the team as well as the financial situation of the sporting franchise. Teams need to stay abreast of the latest changes in order to obtain a competitive advantage.
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