Question

​​​​​​Econ 3030- Economics and Sports

1. Name, and briefly discuss, two fundamental economic factors which have been important drivers of growth in the market for sports in the past century.

Answer 1

Two economic factors are:

(1) The boom of Merchandizing: Over the last few decades there has been a huge increase in the merchandise related to sports. Global markets are flooded with mugs, shirts, posters etc of all the teams and the star players. This has helped make sports more popular as it attracts new people and generates tremendous interest in new regions.

(b) Economies of Social media: Increased use of social media has turned sports players into big celebrities and increased direct interaction with the fans. This has helped in the growth of the sports industry. Th economic factor is that the marketing cost of sports organizations have been cut greatly as a sports celebrity would not have to travel to a foreign to country to promote the game. He/she can ssimply connect online and actually be able to reach out more people.