Don’t Just Watch the Sports You Love—Invest in Them!

Sport, one of humanity’s oldest traditions, began as a means of survival through physical activity and evolved alongside human civilization. Archaeological findings suggest that the earliest sports activities date back to around 3000 BCE with the Sumerians.

In Ancient Greece, sports were symbolized by the Olympic Games, religious and athletic festivals held in honor of Zeus. In the Middle Ages, knightly tournaments and equestrian sports gained popularity. During the Renaissance and Enlightenment, the foundations of modern sports were laid, and their physical and health benefits began to be widely discussed. By the 19th century, sports like football, baseball, and basketball became codified and organized into international competitions. In the 20th century, advancements in mass communication transformed sports into a massive global industry. The Olympics became a worldwide event, and professional leagues emerged.

Today, sports not only play a vital role in promoting health and wellness but have also transformed into a powerful global entertainment and service industry, reaching people of all ages thanks to globalization and digitalization.

From Entertainment to Industry

With the rise of television and digital streaming platforms, sports have become powerful marketing tools, bringing together vast consumer audiences and turning into major commercial ventures. The production, distribution, marketing, and organization of sports-related goods and services have become vital economic activities for nations.

What Is the Sports Industry?

The sports industry serves both consumers and organizations, covering everything from sportswear and equipment to media, advertising, franchising, food services, and entertainment. Products include recreational activities, fitness, and leisure services.

Academically, the sports industry is defined as "all products and services related to sports offered to consumers, people, places, and ideas.” With a projected global market value of $680 billion by 2028, the industry can be segmented as follows:

1. Performance Segment

Focused on enhancing athletic performance, this segment includes equipment, facilities, and training programs. Leading names include:

• Brands & Teams: Nike, Adidas, Puma, Under Armour, Reebok, Manchester United, Formula 1, Ferrari NV, Mercedes-Benz Group, Science in Sport PLC.

2. Product Segment

Involves the design, production, and distribution of products such as shoes, apparel, gear, and fitness equipment. Leading names include:

• Manufacturers: Head, Wilson, Babolat, Columbia, The North Face, Patagonia, Technogym, LifeFitness, Mattel, Hasbro, Spin Master, Pirelli, Shimano Inc., Thule Group, Foot Locker Inc.

3. Promotion Segment

Handles marketing and advertising of sports brands and events. Sponsorships, branding, and athlete marketing are central here. Key players include:

• Sponsors & Media: Visa Inc., Liberty Media, TKO Group Holdings Inc., Coca-Cola Co.

The Power of Sponsorship and Media

As social and mass media reshape consumer behavior, our desire to own what we see increases. Thus, it’s no surprise that global brands invest heavily in sponsoring sports teams, athletes, and events.

The sports sponsorship market is projected to reach $190 billion by 2030. In 2021, the top 10 Formula 1 teams generated $991 million in total revenue—39% of which came from sponsorships. U.S. viewership of F1 doubled from 554,000 in 2018 to 1.11 million in 2023.

A First in Turkey: BV Portföy Sports Industry Variable Fund

Recognizing the rapid growth of the sports industry, BV Portföy has launched Turkey’s first Sports Industry Variable Fund (SPR). Our actively managed portfolio includes high-profit global leaders and promising local companies across a wide investment universe.

With this fund, investors gain exposure to:

• Sports clubs and organizing bodies
• Equipment and apparel manufacturers
• Sports nutrition companies
• Digital sports content providers
• Global and local sponsors

You can invest in the BV Portföy Sports Industry Variable Fund (SPR) today through TEFAS member platforms or directly with BV Portföy.