Brazilian market
The market for the organization of sporting events in Brazil
An event can be defined as something organized that has some distinctive characteristics : it occurs in a specific place and takes place during a limited time. Events can be distinguished according to a variety of criteria, in terms of content that can be identified, for example, sporting, recreational or cultural events.
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An event can be defined as something organized that has some distinctive characteristics : it occurs in a specific place and takes place during a limited time. Events can be distinguished according to a variety of criteria, in terms of content that can be identified, for example, sporting, recreational or cultural events.
Sport events are competitions with ancient origins and today represent the majority of the events sector. Their preeminence is mainly due to their ability to attract a large number of crowds and considerable media coverage and, consequently, to generate an economic impact. The global sports market is characterized by rapid and cyclical growth, based on the organization of major events. The latter represent real economic and sometimes even geopolitical challenges for the host countries. Hosting major sporting events is an opportunity to present the country not only in sporting terms but also in terms of tourism, culture and economy, with a greater contribution to job creation (especially temporary) and income in terms of turnover. From 2017 to 2021, the compound annual growth rate (CAGR) of the market is estimated at 3.58%, according to Technavio.
After hosting major events such as the 2014 FIFA World Cup and the Olympics in 2016, Brazil needs more sports competitions, particularly those that are perpetuated in the calendar. In fact, the country has seen an escape of some big events, such as UFC who has reduced the number of combats in the country, and the IndyCar Series, which has not found an agreement to be sustained.
Football/Soccer alone accounts for a total of R$ 52.9 billion in the economy, which represents 0.72% of Brazil's GDP. Despite the infrastructure improvements resulting from the World Cup and the Olympics, the sector faces a difficulty in terms of investment, which seems to become increasingly scarce. 90% of the resources invested in sports in the country are concentrated in soccer. The players who know how to overcome this adversity will find a huge potential consumer market who for some years now is lacking major non-football related events.
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