Thursday, January 6, 2011

Breaking down Brazil´s sport industry

Although Brazil and Rio de Janeiro’s successful bids to host the 2014 FIFA World Cup and 2016 Summer Olympics respectively have caused a massive change in the country’s sports market, the pre-Cup and Games situation was quite different and provides a telling picture of just how much work and preparation is required over the coming years.

In 2006 the Ipsos Marplan Institute (www.ipsos.com.br), on behalf of Brazil’s number one pay television network SporTV, completed a comprehensive, 10 month study of the Brazilian sport market. Called Dossiê Esporte, the study is based on a wide range of research including government, academic and industry findings and interviews of more than 2,300 Brazilians in nine state capitals. The study is considered one of the best reference points for sport industry information currently available in Brazil.

Key figures from the study:
- Economic value of Brazilian sport industry (incorporating all sporting activities and all production, business and services related to sport) in 2005 = US15.6 billion = 1.95% of GNP
- 91% from the private sector and 9% from the public sector
- Prediction for 2010 = US$28 billion
- Between 1995 and 2005 the sport sector grew at a rate 7.42% greater than Brazil´s GNP growth rate.
- The number of formally registered jobs linked to the sport industry jumped from 245,184 n 1995 to 315,006 in 2005.
- Brazilians spend 1.75% of their income on sport, or US$42.39 per year, whereas Americans spend US$551 or 1.9% of their income. Australians spend US$138 or 0,9%. (Source: Institutional Business, International Consultancy (www.ibci.com.br))


* Further details from the study, including Public/Private sector specific figures and details of sport media coverage in Brazil will be provided over the next few weeks.