Strategic Intelligence: Geopolitics in Sport

Strategic Intelligence: Geopolitics in Sport

Summary

An analysis of the geopolitics in sport sector provides a detailed, et easy to follow overview of the geopolitics in sport sector.

Dating back to the Second World War, professional sports have always been affected by geopolitical events. Every aspect of the sports business can be influenced by political situations, with Russia’s invasion of Ukraine in 2022 serving as a prime example. More recently, India and Pakistan have been on the brink of war after India launched airstrikes on Pakistan in response to a deadly terrorist attack in the disputed Kashmir region.

US tariffs could have a major impact on sports teams globally

One of the most immediate impacts of tariffs is the potential decline in sponsorship revenue. Companies in sectors like automotive and technology, which are heavily affected by tariffs, may reassess their marketing budgets, particularly their sponsorship commitments in sports. As these companies face increased costs and reduced profits, they may cut back on spending for sponsorships, which are crucial for many sports teams. For instance, Audi, a major sponsor in US sports, has already halted exports to the US, raising questions about its future sponsorship activities in the market. Tariffs on imported goods, such as the 25% tariff on steel and aluminum, could lead to increased costs for sports teams.

The US is set for its biggest decade in hosting sporting events

Between The US is poised to host its most significant decade of sporting events. Between 2024 and 2034, the country will cohost the 2026 FIFA World Cup, hold the 2028 Summer Olympic and Paralympic Games in Los Angeles, and host the 2034 Winter Olympic and Paralympic Games in Salt Lake City. This presents an opportunity for the US to showcase its ability to host major sporting events on a global scale. However, President Trump's tariff policies could have negative effects on sponsorships, merchandise sales, and overall revenue for these upcoming events, particularly the 2026 FIFA World Cup.

Saudi Arabia is becoming a sporting superpower

Saudi Arabia has been making strides to become a prominent sporting hub. The nation has invested $6 billion in the sports industry and successfully hosted various sporting events, including Formula 1 races. Companies based in Saudi Arabia have pledged over $500 million in sponsorship investment funds to align themselves with some of the world's biggest sporting properties. With its commitment to "Vision 2030," which focuses on economic reform and improving the quality of life for its population, Saudi Arabia is expected to continue its mission to become a dominant force in world sport. As the host nation for the 2034 FIFA World Cup, Saudi Arabia has the opportunity to showcase itself as the premier destination for hosting the biggest event in world sports.

Scope

• This report provides an overview of geopolitics in sport sector, including the key leaders, a look at some of key trends, an analysis of the industry in terms of market size and growth forecasts.

Reasons to Buy

• For those wanting an in-depth analysis of the geopolitics in sport sector, in the sense of both business and popularity.