The global sports economy could be worth as much as $8.8 trillion by 2050, up from $2.3 trillion today, however climate and environmental risks could put much of this growth at risk, a report by Oliver Wyman has found, according to a post by Sustainability Online porta.
Oliver Wyman‘s report, Sports for People and Planet, which was undertaken alongside the World Economic Forum, suggests that the global sports economy is set to enjoy compound growth of 10% over the next five years, to be worth $3.7 trillion by 2030, however escalating climate and nature risks, along with rising physical inactivity, threaten up to $517 billion of this revenue.
If current trends continue, potential losses could be worth as much as $1.6 trillion by 2050.
“As well as exploring key growth drivers that are shaping the global sports economy, this report identifies three distinct pathways that reflect sport’s unique impact, including championing resource stewardship, placing sport at the heart of cities and catalysing purpose-driven capital flows,” commented Tony Simpson, partner and sports practice leader at Oliver Wyman. “This analysis has the potential to help organisations with investment and risk, as well as with insurance considerations that support this industry.”
It also identifies four potential growth drivers: the expansion of sports tourism, the development of sport as an asset class, the growth of women’s sport and increased participation from emerging economies.
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