How Organizers Earn Money on Sports Competitions

One of the main struggles of every sports tournament organizer is figuring out how to make revenues from each sporting event. From small local events to large international sports competitions, organizers aim to create maximum income to make the course worthwhile.

If you are planning on holding a sporting event, you should write down a list of revenue sources, project the expected revenue and compare it with the expenses.

Ways for organizers to earn money from a sporting competition 

Ticket Sales

Ticket sales contribute to the majority of revenue in most sporting events. Organizers charge a fee to fans entering their events. The price may be paid physically at the gate or online, where fans pay and print the tickets.

Significant events like the FIFA World Cup or the Olympics have been generating revenues worth millions of dollars from just the sales of tickets for live events. 

During the Russia 2018 World Cup, FIFA announced that over 2.5 million tickets were sold to fans worldwide.

Registration and Membership Fees

Another source of money for sports organizers is registration and membership fees paid by participants. Participatory events such as the New York Marathon attract thousands of participants, from top athletes to members of the public running for fun. The participants pay registration fees depending on the level of competition they wish to participate in.

In other events, such as the U.S. Open, participants pay membership fees to become members of the events.

Parking Fees

Parking is a significant contributor to revenue for many events. Organizers charge parking fees per hour or day, which generates substantial revenue depending on the size of the event. Event organizers must provide ample and secure parking spaces with well-trained attendants.

Charging parking fees is mainly practical when holding a sports competition in a stadium or enclosed space with designated entry and exit routes.

Sponsorships

Sponsorships are a primary source of funds for sports tournaments. Live sporting events with spectators generate considerable profits through sponsorship rights that partner with different brands.Partners supply budgets for holding the event and get a platform for reaching the desired target market, attending, participating, or watching the sporting event from home. 

With millions of businesses worldwide, sports sponsors are always ready to fund a sporting competition, provided they get to showcase their products to their target market. 

Major sports tournaments, such Olympics, FIFA World Cup, major city marathons, NFL, NBA, and European Football, are favorites for global brands wishing to feature their products on the global stage.

Companies willing to sponsor events – gambling companies & others

Major sports tournaments, such Olympics, FIFA World Cup, major city marathons, NFL, NBA, and European Football, are favorites for global brands wishing to feature their products on the global stage. 

Gambling operators that provide online services are among the most likely companies to invest significant sums of money in showcasing their logos during sports competitions. The same thing can be said about other influential companies, such as Coca-Cola, Samsung, Visa, and Mastercard.

How much do sponsorships bring to the industry?

The global sports sponsorship deals amounted to $57 billion in 2020 and are expected to hit $90 billion by 2027. The sponsorship is given in the form of a corporate logo on the uniforms, stadium naming rights, and media sponsoring.

Other ways of gaining revenue 

Selling food and beverages is another excellent revenue stream for organizers of sports competitions. 

Promoters can buy snacks and drinks from the suppliers and resell them to event attendants at higher prices. Most sports events fans do not care about paying an extra coin for the beverages, provided they enjoy the competition.

Merchandising

Sports fans like showing their affiliation with a sporting event, player, or team. One way of showing this affiliation is wearing sporting apparel with the names of their favorite players, teams, or sporting events. Event organizers benefit from this by selling events T-shirts, caps, or jackets.

Organizers also make money from selling sporting equipment, especially in sports tournaments involving special equipment. Traveling events provide a perfect platform for sports organizers to make guaranteed sales, as players don’t like traveling back to make purchases.

Vendors Licensing

Sporting organizers also license vendors to set their tents at the event and sell their products to the attendants. This provides additional revenue to the promoters. 

Thousands of businesses will jump at any opportunity to sell their products to a large crowd. They pay fees to the event organizers depending on the size of the event. Such businesses include restaurants, mobile phone sellers, and clothes designers.

Live sporting events are profitable opportunities

Sports tournaments attract many people as fans or participants. Organizers of these events make money from ticket sales, parking fees, sponsorships, merchandising, and licensing, among others. From small sports competitions to global events, promoters always look for more ways to make extra cash.