From Play to Purpose: The Future of Organized Sports, A New Category for Investment (Baird)

Summary

• Approximately 30 million youth athletes participate in 50 million events annually, generating nearly $40 billion in annual spending.p.7
• The adult recreational sports market generates an estimated $4.64 billion annually, with participation rates highest among millennials (31%) and Gen Z adults (47%).p.7
• U.S. parents spend an average of more than $1,400 per child annually on amateur athletics.p.10
• Over $2.5 billion is projected to be invested in youth and adult recreational sports facility construction between 2024 and 2026.p.11

Key insights

1. The Organized Sports market remains highly fragmented and predominantly regional, creating significant opportunities for institutional investors to execute national consolidation strategies.p.7
2. High school girls flag football has expanded to 17 sanctioning states, over 65 NCAA schools, and more than 100 colleges offering varsity or club teams.p.9
3. More than $2.5 billion in sports infrastructure spending is projected between 2024 and 2026, highlighted by destination complexes like the $400 million Ontario Sports Empire.p.11
4. Name, Image and Likeness (NIL) rights and social media have accelerated youth athlete branding and demand for national scouting and showcase platforms.p.11
5. Top investment targets include travel clubs, tournament operators, scouting platforms, training academies, and multi-sport facility complexes.p.16