Sports industry is an important revenue generator in world economy. Sports goods industry comprises sports equipments, accessories, and apparels. In addition to global giants, localized industries also contribute towards the growth and development of sports goods industries.
With increase in viewer ship due to television coverage of important sporting events like Olympics, World Cup football, UEFA Cup, Wimbledon, US Open, Australian Open, French Open, Formula 1 racing, World Athletic meet, and NBA Basketball championship, sports as an industry has grown manifold. Sports industry, in addition to products also involves endorsements, telecasting rights, and media advertisements.
Sports goods manufacturers
Adidas, Nike, Wilson, Puma, Slazenger, Stiga, Dunlop and Yonex are some of the internationally acclaimed sports equipment and apparel manufacturers.
1. Adidas – Adidas based in Herzogenaurach, Germany is an international giant manufacturing footwear, accessories, and apparels. TaylorMade-adidas golf company, Reebok sportswear, and Rockport are member companies of Adidas group. Adidas manufactured footwear includes basketball, running, golf, football, tennis, training and cycling shoes for men. Women footwear includes training, outdoor, tennis, and running shoes. Among accessories, Adidas manufactures footballs, shin guards, tennis wristbands, tennis caps, and workout and weekender bags. The apparels include shorts, jerseys, and training outfits. The company recorded revenue of US $ 15.6 billion in 2007.
2. Nike – Nike based near Beaverton in Oregon is a leading designer, distributor and marketer of sports equipments, accessories, apparel, and footwear. Converse Inc., distributor of athletic footwear, accessories, apparel; Umbro Ltd., a U.K. based soccer brand; Cole Hann, designer and distributor of luxury shoes, handbags, and accessories; and Hurley International, designer and distributor of youth apparel, accessories and footwear are subsidiaries of Nike Inc. This Fortune 500 company having an employee strength of over 30,000 earned a revenue of US $16 billion in 2007.
3. Puma – Based in Herzogenaurach, Germany, Puma designs, distributes and markets sports footwear, accessories, equipments, and apparels. Puma designs football, golf, running, motor sport, sailing, and cricket accessories and footwear. Puma in 2006 earned a revenue of US $3.512 billion
Important sporting events
Summer Olympics is a major revenue generator in the world of sport. 2008 Beijing Olympics involving over 11,000 athletes from 204 nations competing in 302 events, generated a revenue of US $42 billion.
2006 FIFA World Cup played in Germany among 32 national football teams reached out to nearly 27 billion viewers worldwide. In 2006 World Cup, FIFA earned US $2.42 billion from marketing and US $892.43 million from sponsorship.
United States Tennis Association (USTA) earned US $220 million from 2007 US Open tennis tournament.