Hi Preplounge community,
Is there any idea to do market sizing in terms of revenue for sports league - similar like NBA?
I think about:
sponsorship + media rights + ticket sales + merchandise
however, i find a difficulty to elaborate the details about how to calculate sponsorship and media rights,
1) sponsorship - is it make sense to say: # of sponsors X avg value?
2) media rights - # of viewers X cost of view X margin?
Cheers!
Hi there,
It is possible to do a market sizing for ANYTHING!
A top down approach would be to look at the overall US market value OR the US total sports market value (if you know it), then think about what % the league is.
Another top-down approach would be to look at population, which groups would spend on that sport, and how much they would spend.
A bottom-up approach (preferred) would be to think about # of teams, # of stadiums (and attendance size), # of games, and value of each person's spend at those games (tickets + food).
^Then, add into that external revenue such as merchandise (jerseys etc.), partnerships/sponsorships/advertising etc.
