Industries
The sports industry, particularly sports clubs, faces challenges such as managing financial sustainability amid fluctuating revenues from ticket sales, sponsorships and broadcasting deals. Additionally, clubs must navigate new business models, increasing player wages, regulatory compliance and fan engagement in a highly competitive and rapidly evolving market. Balancing profitability with performance, while maintaining a strong brand and fan loyalty, remains a constant struggle.
15-30%
performance enhancement
20-30%
reduction of operational costs/inefficiencies
25%
increase in matchday revenue
Overview
Overview
Five key areas that are impacting sports organizations in the U.S. that are driving new requirements to transition business models.
Business strategy and models :
New business models play a crucial role in the sports industry. With changing fan expectations and evolving revenue streams, sports clubs are increasingly adopting digital platforms, subscription services and partnerships with tech companies to enhance fan engagement and monetize content. Additionally, clubs are exploring innovative revenue sources such as esports, merchandising and data-driven services, helping to diversify income and improve financial sustainability in a competitive market.
Revenue management and profitability :
Sports clubs face challenges in managing revenue and profitability due to fluctuating ticket sales, sponsorships and broadcasting rights. High player wages and operational costs, combined with external factors like economic downturns, add pressure on maintaining financial stability..
Regulatory compliance :
Sports clubs face regulatory compliance challenges with financial fair play, player contracts and governance standards. Adhering to rules on salary caps, tax laws, anti-doping and fan safety is crucial to avoid penalties and protect their reputation.
Fan engagement and competition :
With the rise of digital media, fans expect more personalized and interactive experiences, making it vital for clubs to innovate in marketing, content delivery and community building. At the same time, clubs must maintain on-field success to retain loyalty and attract new supporters, balancing fan expectations with the demands of high-level competition. Also virtual competition in the form of video games, esports and virtual events are becoming more popular than in-person events for younger generations.
Technology and AI integration :
Sports clubs are adopting technology and AI to improve player performance, fan engagement and operations. While these tools offer valuable insights, integrating them requires significant investment and expertise, along with ensuring data security and compliance.
Why Horváth
Why Horváth
Horváth brings together professionals with deep expertise in both the sports industry and strategic consulting. The team supports clubs, leagues and sports organizations in transforming today’s challenges into future growth - driving holistic change across every level of the organization.
At the heart of modern sports management lies fan centricity.
The service portfolio is forward-looking and tailored to the unique dynamics of the sports world. Leveraging proven methodologies and deep industry insights, consultants guide client organizations through successful transformation from strategic reorientation to operational excellence.
Below are some of the ways Horváth can help to address the challenges mentioned above, by helping clients to:
- Align business and engagement models with evolving fan expectations and digital behaviors
- Optimize operations and value chains from ticketing and merchandising to sponsorships and media rights ensuring sustainability, agility and reach across all channels
- Differentiate offerings and experiences through data-driven insights, innovation and personalization
- Streamline structures and enhance performance enabling faster decision-making and more efficient processes on and off the field
Case studies
Case studies/testimonials
Finance excellence
WHO
Governing body of European sport, organizing major international competitions and promoting the sport across Europe.
WHAT
The client had heterogeneous data sources with no structured group-wide reporting to enable reliable decision making.
HOW
Development of a structured reporting with a corporate dashboard across the group entities. This entailed homogenization of data sources and definition of relevant KPIs.
Solutions expertise
Solutions expertise
Operations Performance
Technology Acceleration
Business Strategy
Finance Excellence
Connect with Horváth
Your Contact
Susann Michaelis