Product and Service

Companies included in sport team –soccer sector in admission to amusement industry primarily own professional soccer sport teams earning revenue from commercial –sponsorship &retail, broadcasting, and ticket of matches.


Demand for Product and Service

As indicated by the typical company data, the demand for sport and other entertainments has been increasing significantly in the past several years. The increased demand has been proved by the increased revenue from media rights of those sport leagues, sponsorship, and admission.  

The Sector

Sector’s Current, Trend, Causes behind trend, and Future

Current and Trend
  • It seems that the demand, from TV broadcasting, for soccer matches has been continuingly and quickly increasing in the past three years.
  • It seems that the demand, from sponsors, for soccer teams has also increased during the same period of time.
Causes behind the trend
  1. The upward trend in this industry may be consistent with what is happening in other entertainment and leisure industries and presents undergoing, deep changes in lifestyle and consumption habit in current society. One of examples is that people increasingly spent more time on TV and online media.
  2. This trend is also driven by changes in demographic trend.
  3. Globalization and economy growth in developing countries explain a significant portion of increased demand.
Industry Future
  • As upward trend in this industry continues, companies may be able to continue to see large growth in their revenue.


General Financial Performance of Companies In the Sector

It seems that the demand for soccer sports entertainment has been continuously strong in the past three years as indicated by increased revenue of media rights of sport leagues (TV broadcasting). However, data indicates that the growth in revenue from sponsorship/AD and ticket seems to be slowing down, a possible signal of consumers’ demand slowing down.
While the increased revenue/demand, the gross margins of companies seem to pull back from high 2016 (a typical gross margin of 13% in 2018) as growth in revenue of commercial and ticker slowed down and increased expenses.  A typical SG&A as percentage of sales is about 3% and operating margin is about 10% in 2018.
The typical enterprise price/EBI ratio is about 75, which implies a stock price/sales ratio of 4.

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