See the complete list of trends that we analyze.

1) Introduction to the Sports Industry.

The sports business means many different things to different people. This is a truly global industry, and sports stir up deep passion within spectators and players alike in countries around the world. To one person, sports are a venue for gambling; to another, they are a mode of personal recreation and fitness, be it skiing, cycling, running or playing tennis. To business people, sports provide a lucrative and continually growing marketplace worthy of immense investments. To athletes, sports may lead to high levels of personal achievement, and to professionals sports can bring fame and fortune. To facilities developers and local governments, sports are a way to build revenue from tourists and local fans. Sports are deeply ingrained in education, from elementary through university levels. Perhaps we can't state with confidence that sports enrich the lives of all of us, but they certainly entertain a huge swath of the world's population. In addition to economic impact, the largest single effect that sports create is that of gripping entertainment: hundreds of millions of fans around the globe follow sports daily, whether via radio, television, printed publications, online or in person, as spectators or participants.

Sports are big business. Combined, the "Big 4" leagues in America, the National Football League (NFL), National Basketball Association (NBA), the National Hockey League (NHL) and Major League Baseball (MLB) leagues bring in about $16 billion in annual revenue, but that's just the tip of the iceberg. U.S. sporting equipment sales at retail are roughly $41 billion yearly, sports apparel $51 billion and athletic footwear $26 billion. A reasonable estimate of the total U.S. sports market might be $425 to $450 billion yearly. To put that in perspective, the U.S. retail food industry, including supermarkets, is only slightly bigger. However, the sports industry is so complex, including ticket sales, licensed products, sports video games, collectibles, sporting goods, sports-related advertising, endorsement income, stadium naming fees and facilities income; that it's difficult to put an all-encompassing figure on annual revenue. When researching numbers in the sports industry, be prepared for apparent contradictions. For example, the NFL receives more than eight times as much money each year for TV and cable broadcast rights as professional baseball, despite the fact that pro baseball teams play about 10 times more games yearly than pro football teams.

When the astonishing variety of sports-related sectors are considered, a significant portion of the workforce in developed nations such as the U.S., U.K., Australia and Japan rely on the sports industry for their livelihoods. Official U.S. Bureau of Labor Statistics figures state that 191,710 people work in U.S. spectator sports alone (as of May 2007 including about 12,670 professional athletes), while 507,000 work in fitness centers, about 36,000 work in snow skiing facilities and about 352,300 work at country clubs or golf courses. In total, approximately 1.55 million Americans work directly in amusement, gambling and recreation sectors.

While it may not seem like it to the casual observer, the sports sector is constantly evolving in terms of personal tastes, popular games and technologies. For example, the decades-old Indy 500 is losing ground to NASCAR. In fact, the personality and popularity of a top athlete can have a tremendous impact on the current popularity of a particular sport-seven-time Tour de France winner Lance Armstrong being a superb example with his extremely positive impact on cycling.

umbers published in an annual study by The Sporting Goods Manufacturers Association (SGMA) are particularly informative about changes in individual sports, exercise and recreation. For example, tennis is making a comeback (up 30% from 2000-2007). The fact that tennis is among the least costly sports in which one can participate, combined with the fact one can usually get to a tennis court without a long, gasoline-guzzling drive in an automobile, could easily push tennis to new popularity in today's tepid economy and high gas prices.

Which brings up the entire problem of gasoline prices in recreation and sports: clearly, $4 per gallon gasoline is going to significantly dampen the popularity of motor boats, RVs and anything else that has a large engine. Sales of motorized recreation equipment are going to plummet, except in cases where that equipment is known for high energy efficiency. Sailing anyone?

Meanwhile, the number of people playing golf is dropping. SGMA reports that some of the highest increases in participation for 2000-2007 were in the activities of bowling, table tennis, lacrosse and paintball. Roller skating, on traditional 2X2 skates, is growing as well (15% in that seven year period). However, inline skating (on roller blades) has declined by 50%.

Then there's the fact that large audiences have been watching high-stakes poker tournaments on television recently. Does that qualify as sports broadcasting? It's certainly a game. Moreover, thanks to the Internet, fantasy sports teams and online betting on sports events are soaring.

One of the strongest, long-term growth trends in all of the recreation business is in fitness-related activities. In the U.S. alone, health clubs boast 40 million members, and another 25 million Americans use exercise machines in their homes. America's 78 million Baby Boomers, with time and money on their hands plus a growing concern about their quality of life, will boost this sector further. Among the fastest growing activities of all, according to SGMA, are exercise categories like spinning classes (advanced stationary bicycles), Pilates, use of treadmills and yoga/tai chi.

Finally, evolving technologies and fashions have an immense impact on sales of sporting goods within specific sectors. Sporting goods makers are constantly trying to create reasons for consumers to buy new equipment. Golf ball and club makers adopt new technologies with great success. Snow ski makers use new technologies as soon as they become available. Additionally, ski gear manufacturers introduce new fashions, new colors and new styles yearly in an effort to get consumers to buy new or buy up, regardless of whether significant new technologies are involved.

Meanwhile, the media used to deliver sports and sports related information is evolving quickly. Sports coverage is one of the most widely viewed categories online. At the same time, digital TV recording devices (DVRs), such as TiVo, are enabling fans to watch events according to their own schedules. Finally, the rapid emergence of sports news and events video delivered via state-of-the-art cell phone screens is having a major impact.

Watch for continued rapid change throughout the sports industry, as consumers' tastes and manufacturers' product lines evolve.