This year’s Olympic Games bring with them some surprises in the form of new sports that will make their debut at the Games. These include breakdancing, which will debut this year, along with sports such as surfing, skateboarding, and sport climbing. New sports have been introduced because organizers believe that such events could appeal to a demographic that research shows is losing interest not only in the Olympic Games but in live sports in general. This, of course, refers to Generation Z, which can apparently sit for hours only in front of mobile screens. Evidence of the decline in youth engagement in sports is numerous and growing daily. Last year’s YouGov report shows that only 31 percent of global sports fans aged 18 to 24 watched live matches, compared to 75 percent of those aged 55 and older. Instead, younger viewers are more likely to watch clips of highlighted events or simply watch snippets or highlights on one of the social media platforms, scrolling and pausing every few seconds. Separate research by Morning Consult in the U.S. showed that nearly half of Generation Z — defined as those born between 1997 and 2012 — have never attended a professional sporting event live, while only 53 percent of them consider themselves sports fans, compared to 69 percent of millennials. – The overall interest of Generation Z in sports remains significantly below that of older generations – states Morning Consult in its accompanying report. Explanations for these changing habits vary. Some believe the problem lies in the ever-increasing cost of TV subscriptions and ticket prices that are becoming more expensive. Others believe that young people are simply inclined towards short formats and are overwhelmed by other forms of entertainment that did not exist when older fans first experienced live sports. – This is a problem that is increasingly being discussed worldwide. Gen Z is used to having everything available immediately and now due to services like Netflix, where they can get the movie they want whenever they want. The charm of sports is that it has to happen in real-time, which does not suit Generation Z – believes Fran Peterlin, director of the sports agency Upgrade Sports Agency. Regardless of the cause, such trends threaten the long-term sustainability of a business model built on multi-billion dollar live broadcasting contracts, and thus the alarm has been triggered across the industry. Sports Outside the Box Investors and executives running clubs and competitions are responding with a series of new ideas, including changes in how sports are delivered live, and some are even going a step further by proposing changes to the game itself. Optimists believe that changing tastes could even represent an opportunity for sports to break out of their traditional bases of hardened followers and reach millions of new fans. 2371579 – Today, rarely does anyone go to matches just for the sake of the match (sport); it is increasingly important to create good additional content that will constantly hold the viewer’s attention, including Gen Z. Light shows, prize games, halftime competitions, kids’ zones, etc., are things that will interest people in coming to the match – adds Peterlin. The rapid growth of women’s sports, for example, is creating new fans. In the U.S., the popularity of basketball player Caitlin Clark helped the University of Iowa’s women’s basketball team break TV viewership records for the entire season. The NCAA championship game attracted nearly 19 million viewers, making it the most-watched American sports program outside of football in at least five years. Deloitte expects that women’s professional sports will generate revenue of 1.3 billion dollars this year, compared to 981 million dollars in 2023. – Everyone is currently concerned about the future of the industry. It is more of a bear market than a bull market – says Gareth Balch, co-founder of the consulting firm Two Circles, which advises a long list of top sports companies, including the National Football League, the English Premier League, and the Wimbledon tennis championship. The enormous success of Netflix’s series Drive to Survive, which showcases the behind-the-scenes of Formula 1, has spawned similar shows about rugby, golf, and cycling. A YouGov survey showed that 20 percent of British sports fans aged 18 to 29 consider themselves ‘passionate’ F1 fans, but 31 percent identified as dedicated viewers of Drive to Survive. Meanwhile, the female fan base of F1 has grown from 10 percent of the total before the show’s launch to 27 percent in 2022. Executives across the sector believe that showcasing their sport to a broader audience is an important step in increasing interest in stars and top teams on social media, which should then lead to more viewers of live competitions. Alternative Viewing Another strategy is to find alternative delivery channels for the games themselves. During the 2022 FIFA World Cup in Qatar, the tournament organizer FIFA allowed Brazilian fans to watch their national team’s matches for free on Twitch, a video game streaming website, after partnering with influencer Casimiro. Some of these alternative programs even target younger fans. In the U.S., the NFL aired the latest Super Bowl live on Nickelodeon, a children’s cable network, and engaged characters from the cartoon SpongeBob SquarePants and Patrick as commentators. Using augmented reality, viewers on the channel could see virtual green slime splattering on the field after a touch and saw a giant robot Plankton – the villain from the children’s TV show – flying over the stadium throwing buckets of cartoon friends at the audience. 2371574 Barney Francis, who leads global production for the sports marketing agency IMG, says the industry will continue to innovate with alternative programs ‘for different ages and tastes’. – Technology allows producers to become more creative in how they handle live sports to create new experiences for viewers that go beyond sports and become cultural moments – says Francis. In addition to increasing their presence on social channels like TikTok and Snapchat to reach young people, many competition organizers are embracing various online games and activities to connect more easily with teenagers and children and to teach them about their sport, ultimately turning them into lifelong fans. – The presence of clubs and athletes on social media is essential if they want to reach younger generations. I often consume sports on social media myself, and it is important for clubs and federations to be present there. Through these channels, short videos and visuals are important to attract young people to matches. Sports must show that it is worth coming to the match because it will be interesting for them there. I believe that the synergy of social media and live broadcasts is crucial in keeping young people interested in sports – says Peterlin. EA Sports claims that playing EA Sports FC, the most popular video game franchise in history, increases the likelihood that a young person will buy tickets to a football match by 18 percent and pay for a TV subscription by 21 percent. Games in Games The Wimbledon tennis championship was among the pioneers, creating impressive experiences on Roblox, a gaming platform popular among school-age children. In WimbleWorld, users can play mini-games themed around tennis and interact with a virtual Andy Murray. For older players, the tournament organizers created ‘Race to Wimbledon’ on Fortnite last year. A large part of this was driven by research showing that interest in sports is usually created by the age of 14. – You have to fish where the fish are. If the first thing a child turns on is a PlayStation or smartphone, you need to be able to communicate with them through that platform – says Usama Al-Qassab, marketing director at the All England Club, which runs the Wimbledon tennis competition. Other sports franchises and competitions are following this example. In March, the English Premier League took a minority stake in Rezzil, a virtual reality software developer, and signed a four-year contract to create a game that will ‘put users on the field and in the boots of their favorite Premier League players’. The league is also working with Sky Sports and IMG to test a new ‘Game Mode’ for live broadcasts, where TV viewers can switch to a camera angle that mimics the look of EA Sports FC. Some investors and executives envision a future where new technology transforms live sports into an experience that ‘comes alive with you’. Ian Charles, co-founder of the sports-focused investment firm Arctos, outlined a scenario where some perks could be opened through your phone. A fan could, for example, get the chance to map their child’s face onto a sports star while watching a live match at home on the couch. Imagine, on your TV, your son is playing right alongside LeBron James because his face is mapped onto teammate Anthony Davis. Your son dunks and blocks and celebrates. That is an incredible way to attract fans – says Charles. In addition to new technologies aimed at attracting the young, many sports are tinkering with existing formats, making changes to speed up the game and maximize action. Major League Baseball (MLB), for example, introduced a time limit last year to force pitchers to start throwing the ball faster, while stoppage time in football increased during the 2022 World Cup to deter teams from wasting time. F1 has added new sprint races, which last about half an hour instead of 90 minutes plus the Grand Prix, as a way to offer more events for viewers. But some sports are going much further, exploring alternative formats as a way to attract younger viewers, partly inspired by the great success of the Twenty20 format in cricket, where matches last a few hours instead of four or five days. The Indian Premier League Twenty20 tournament has become one of the most valuable sports businesses in the world, with combined TV and streaming rights earning 6.2 billion dollars when sold at auction in 2022. Some in the sports industry have advocated for shorter versions of tennis, basketball, and rugby, while Michael Johnson, a former Olympic gold medalist in the U.S., recently secured investor support for a new ‘fan-focused’ athletic league. Greg Maffei, CEO of Liberty Media, which owns Formula 1 and recently paid 4.2 billion euros for a series of motorcycle races MotoGP, says decision-makers across the sports world are looking for ways to tighten rules to speed up the game and improve the viewing experience. – We can debate whether it is a shortened attention span of the younger audience, but the reality is that their viewing patterns are different, and their level of interest and what interests them is different. You have to find them where they are so that you meet their needs – says Maffei.
Sport and Gen Z – Is There a Salvation for the Sports Business
Martial Arts at Their Peak
Not all sports are concerned about declining viewership among the young. One area that seems to be thriving among younger audiences is combat sports, such as mixed martial arts (MMA) and boxing.
Executives in this part of the industry suggest that these sports have attributes that make them particularly aligned with young fans. First, violent knockouts, which happen in an instant, create viral moments that are suitable for social media.
The unpredictability of each fight also requires constant attention, unlike a 90-minute football match or a 52-lap F1 race. A boxing match can last a full 12 rounds or can be over in 30 seconds – something that can be detrimental to traditional television networks that have to fill time around pre-sold ads, but this represents a smaller problem in the streaming age.
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– When you see a knockout, it’s wonderful. It triggers endorphins. You’re there and have no idea when it will end. And it constantly hits you because that punch could be the last punch – says Todd DuBoef, president of the promotional company Top Rank.
A strong appetite among younger viewers helps explain why the entertainment conglomerate Endeavour struck a deal late last year to merge the Ultimate Fighting Championship (UFC) with WWE (American wrestling). The merger has led to the company’s value now exceeding 20 billion dollars. WWE has over 100 million subscribers on its YouTube channel, compared to 6.7 million in the Premier League and 12.8 million in the NFL. Following this merger, Netflix has agreed to pay 5 billion dollars to stream Raw, WWE’s live event on Monday nights, for the next 10 years. In July, Netflix will also stream its first boxing match between legendary but aging champion Mike Tyson (57) and 27-year-old YouTuber Jake Paul. While many oppose this match due to the obvious age difference, analysts believe it will be the most-watched fight in boxing history.
Some in the industry believe that fears about young people’s appetite for sports are exaggerated and that most of the gloomy data incorrectly links changing habits with a weakening interest. They say that the fan base of sports today is different and that it simply communicates in different ways than before.
