Tuesday, January 25, 2011

Breaking down Brazil’s sport industry part III

In this site’s third and penultimate report on key figures from the Brazilian sport industry, we take a look at the all important area of private sector involvement. Although, with Brazilian sport not yet reaching the levels of professionalism and administrative rigour as in Australia, it is often difficult to find specific information, key numbers from recent years include:

- Total Sport Sponsorship 2008 – R$328,460,000 (approx. AU$ or US$200 million) (Brazilian Institute of Sports Marketing)
- Estimates of private sector sports marketing investments (sport promotions, events and sponsorships combined) in 2007 = US$1.25 billion (10% increase on 2006)
- Overall, according to a report by Deloitte in 2008, Brazilian sporting competitions generate just R$901 million – the main US sport leagues combined generate around R$31 billion
- The sports equipment and clothing sector in Brazil turns over around R$4 billion per year, according to the American Chamber of Commerce, but could triple or quadruple over the next five years. In key examples, each year more than 85 million pairs of sport shoes and 6 million footballs are sold.
- According to the ‘Clube dos 13’ (which represents the 20 biggest Brazilian football clubs and negotiates with the Brazilian Football Confederation in relation to the premier league and broadcast rights), the value of broadcast rights for the Brazilian football championship, the `Brasileirão, grew from US$ 55 million in 1998 to US$ 88 million in 2003 to US$143 million in 2006. In 2008, the organisation re-signed with Brazil’s biggest network, TV Globo, for the 2009, 2010 e 2011, for US$700 million, with some adjustments to be made.

Further details on sport-specific sponsorship spend in Brazil will be provided in the final report in this series next week.