Sports and technology have interjected over a number of years. Given that the pandemic skewed some of the trends at the start of the decade, the past year has perhaps been a better reflection of what sportstech might look like in 2024 and beyond. Here are some of my observations from 2023, and what I expect from the next twelve months.
Sports, and Technology in Sports Specifically, Is Resilient
Reflecting on 2023, one of the most significant learnings has been the resilience of the sports market amidst economic uncertainties. High interest rates and geopolitical risks have not dampened the spirit of mergers and acquisitions in the sports industry, as evidenced by major transactions like the PGA and LIV golf tours merger, and the impressive broadcasting rights deals involving the EPL, Sky Sports, TNT, Apple, and Major League Soccer. This surge in sports M&A underlines the industry’s enduring popularity and resilience, making sports assets a potentially new form of gold in the investment world.
Technology has transformed the sports industry entirely. With startups securing significant funding and the sports tech market projected to reach $41.8 billion by 2027, it’s clear that embracing innovation is now essential for athletes, franchises, and leagues to remain competitive. The traditional model of sports broadcasting is also evolving, with technology firms potentially playing a larger role in the sports rights and assets ecosystem.
Augmented and virtual reality are further transforming the fan experience, providing immersive, interactive matches that increase accessibility and engagement. AI tools are revolutionising media and broadcasting, using automated highlights and personalised content to enhance visibility and draw sponsorships. Big data and AI are improving talent scouting and team management, leading to more strategically composed teams, and the use of AI on social media platforms is greatly amplifying the appeal of sports.
Then there is the role of tech in enhancing athlete performance. Wearable tech and analytics are increasingly used for tailored training and injury prevention, catering to female athletes’ unique needs. Higher injury rates in women’s sports, like ACL tears, are well-known in sports medicine. These injuries, more common in women due to anatomical, hormonal, and biomechanical differences, are frequent in sports requiring jumping, cutting, or pivoting, such as soccer, basketball, and skiing. This tech helps address these specific challenges.
In the upcoming episode of #G42onAir, Tony Paladin, Presight’s Head of Sports Analytics, will discuss the impact of big data analytics powered by AI in sports.
Tune in tomorrow on G42’s Spotify, Deezer, Apple Podcasts, and YouTube to catch the full episode #bigdataanalytics pic.twitter.com/a5wIONiq4V
— Presight (@PresightAI) June 6, 2023
Consumer Tech Has Been Overvalued
The recent developments in consumer tech, particularly in the connected fitness sector, demonstrate a significant shift in market perceptions and valuations. This shift is exemplified by the experiences of companies like Peloton and the strategic decisions made by Lululemon regarding its Mirror product.
Lululemon’s acquisition and subsequent decision to discontinue Mirror, a high-end fitness product purchased for $500 million, signifies a major recalibration in investment strategies within consumer tech. This decision, primarily influenced by the post-pandemic market readjustment, aligns with Lululemon’s strategic refocus on its core athleisure apparel business. It highlights a broader industry trend of reassessing the long-term viability and value of tech investments, especially those that had surged in demand during the pandemic.
Women’s Sports Have Emerged as a Key Market
The past year has witnessed its share of winners and losers, with women’s sports emerging as unsung heroes, setting new records and gaining significant media attention and financial backing. This surge in popularity and recognition is reshaping the sports landscape into a more inclusive and equitable arena.
The Women’s Super League (WSL) has demonstrated this surge in popularity perfectly. Buoyed by the success of the Lionesses winning the Euros last year and reaching the World Cup final in August, the Chair of the WSL, Dawn Airey, has stated that she is confident the WSL will become the first billion pound ($1.24 billion) women’s soccer league in the world within 10 years.
US TV Viewership comparisons….
US Women Soccer vs. England- 8.1 million viewers
OSU Football vs. Michigan- 13.4 million viewers
I dont know what the US women need to do to get people to watch their sport. But there are 150 million females in the US. Start there.
— Jeremiah (@SYRmotsag) July 7, 2019
AI Will Reign Supreme in 2024
The transformative impact of AI in the sports industry is set to reach new heights in 2024, particularly in performance enhancement. AI’s potential to provide insights into various aspects of athlete performance is a game-changer, extending its benefits not just to professional athletes but also to amateurs. This broadening access represents a significant shift towards democratising high-level training and performance enhancement, making advanced sports science and analytics accessible to a wider audience.
AI platforms are introducing innovations that have quickly permeated the sporting world: Hexis is a prime example. It shows how AI can revolutionise athletes’ dietary habits. Uplift is another, focusing on movement in professional sports. These technologies are fundamentally altering the way athletes train and improve; AI is now capable of analysing performance data in real time, offering personalised coaching and feedback that was once the exclusive domain of elite athletes. Amateurs and enthusiasts can access sophisticated training programs, nutritional advice, and recovery strategies, tailored to their individual needs and goals. This democratisation of high-level training tools means that the gap between amateur and professional sports performance is narrowing.
I cannot wait to see alternative sports realities created via AI.
The “what if” question is going to be so fun. pic.twitter.com/cOeWRfdvPe
— Romeen Sheth (@RomeenSheth) February 18, 2024
For investors, the burgeoning sportstech market presents a lucrative opportunity. AI’s widespread application in sports opens avenues for substantial returns, especially in companies that are pioneering this shift. These firms are not just enhancing sports training but are also redefining athlete performance.
Beyond athletic performance, AI’s influence extends to fan engagement, sports marketing, and content creation. This expansion means more potential for diverse investments in sportstech. AI’s capability to create new revenue channels through improved fan experiences and precise marketing initiatives offers a great investment prospect, especially for those seeking portfolio diversification.
For our investors, the advice is clear; 2024 will bring with it some big shifts in the sportstech industry. Opportunities will present themselves when new technologies emerge and traditional markets adapt. As sportstech continues to evolve, the key will be in identifying and investing in those startups that not only innovate but also demonstrate sustainable and scalable business models. This calls for a keen eye on trends that are shaping the future of sports, such as the increasing integration of AI, the rise of women’s sports, and the recalibration of consumer tech valuations.
Sports and technology have interjected over a number of years. Given that the pandemic skewed some of the trends at the start of the decade, the past year has perhaps been a better reflection of what sportstech might look like in 2024 and beyond. Here are some of my observations from 2023, and what I expect from the next twelve months.
Sports, and Technology in Sports Specifically, Is Resilient
Reflecting on 2023, one of the most significant learnings has been the resilience of the sports market amidst economic uncertainties. High interest rates and geopolitical risks have not dampened the spirit of mergers and acquisitions in the sports industry, as evidenced by major transactions like the PGA and LIV golf tours merger, and the impressive broadcasting rights deals involving the EPL, Sky Sports, TNT, Apple, and Major League Soccer. This surge in sports M&A underlines the industry’s enduring popularity and resilience, making sports assets a potentially new form of gold in the investment world.
Technology has transformed the sports industry entirely. With startups securing significant funding and the sports tech market projected to reach $41.8 billion by 2027, it’s clear that embracing innovation is now essential for athletes, franchises, and leagues to remain competitive. The traditional model of sports broadcasting is also evolving, with technology firms potentially playing a larger role in the sports rights and assets ecosystem.
Augmented and virtual reality are further transforming the fan experience, providing immersive, interactive matches that increase accessibility and engagement. AI tools are revolutionising media and broadcasting, using automated highlights and personalised content to enhance visibility and draw sponsorships. Big data and AI are improving talent scouting and team management, leading to more strategically composed teams, and the use of AI on social media platforms is greatly amplifying the appeal of sports.
Then there is the role of tech in enhancing athlete performance. Wearable tech and analytics are increasingly used for tailored training and injury prevention, catering to female athletes’ unique needs. Higher injury rates in women’s sports, like ACL tears, are well-known in sports medicine. These injuries, more common in women due to anatomical, hormonal, and biomechanical differences, are frequent in sports requiring jumping, cutting, or pivoting, such as soccer, basketball, and skiing. This tech helps address these specific challenges.
In the upcoming episode of #G42onAir, Tony Paladin, Presight’s Head of Sports Analytics, will discuss the impact of big data analytics powered by AI in sports.
Tune in tomorrow on G42’s Spotify, Deezer, Apple Podcasts, and YouTube to catch the full episode #bigdataanalytics pic.twitter.com/a5wIONiq4V
— Presight (@PresightAI) June 6, 2023
Consumer Tech Has Been Overvalued
The recent developments in consumer tech, particularly in the connected fitness sector, demonstrate a significant shift in market perceptions and valuations. This shift is exemplified by the experiences of companies like Peloton and the strategic decisions made by Lululemon regarding its Mirror product.
Lululemon’s acquisition and subsequent decision to discontinue Mirror, a high-end fitness product purchased for $500 million, signifies a major recalibration in investment strategies within consumer tech. This decision, primarily influenced by the post-pandemic market readjustment, aligns with Lululemon’s strategic refocus on its core athleisure apparel business. It highlights a broader industry trend of reassessing the long-term viability and value of tech investments, especially those that had surged in demand during the pandemic.
Women’s Sports Have Emerged as a Key Market
The past year has witnessed its share of winners and losers, with women’s sports emerging as unsung heroes, setting new records and gaining significant media attention and financial backing. This surge in popularity and recognition is reshaping the sports landscape into a more inclusive and equitable arena.
The Women’s Super League (WSL) has demonstrated this surge in popularity perfectly. Buoyed by the success of the Lionesses winning the Euros last year and reaching the World Cup final in August, the Chair of the WSL, Dawn Airey, has stated that she is confident the WSL will become the first billion pound ($1.24 billion) women’s soccer league in the world within 10 years.
US TV Viewership comparisons….
US Women Soccer vs. England- 8.1 million viewers
OSU Football vs. Michigan- 13.4 million viewers
I dont know what the US women need to do to get people to watch their sport. But there are 150 million females in the US. Start there.
— Jeremiah (@SYRmotsag) July 7, 2019
AI Will Reign Supreme in 2024
The transformative impact of AI in the sports industry is set to reach new heights in 2024, particularly in performance enhancement. AI’s potential to provide insights into various aspects of athlete performance is a game-changer, extending its benefits not just to professional athletes but also to amateurs. This broadening access represents a significant shift towards democratising high-level training and performance enhancement, making advanced sports science and analytics accessible to a wider audience.
AI platforms are introducing innovations that have quickly permeated the sporting world: Hexis is a prime example. It shows how AI can revolutionise athletes’ dietary habits. Uplift is another, focusing on movement in professional sports. These technologies are fundamentally altering the way athletes train and improve; AI is now capable of analysing performance data in real time, offering personalised coaching and feedback that was once the exclusive domain of elite athletes. Amateurs and enthusiasts can access sophisticated training programs, nutritional advice, and recovery strategies, tailored to their individual needs and goals. This democratisation of high-level training tools means that the gap between amateur and professional sports performance is narrowing.
I cannot wait to see alternative sports realities created via AI.
The “what if” question is going to be so fun. pic.twitter.com/cOeWRfdvPe
— Romeen Sheth (@RomeenSheth) February 18, 2024
For investors, the burgeoning sportstech market presents a lucrative opportunity. AI’s widespread application in sports opens avenues for substantial returns, especially in companies that are pioneering this shift. These firms are not just enhancing sports training but are also redefining athlete performance.
Beyond athletic performance, AI’s influence extends to fan engagement, sports marketing, and content creation. This expansion means more potential for diverse investments in sportstech. AI’s capability to create new revenue channels through improved fan experiences and precise marketing initiatives offers a great investment prospect, especially for those seeking portfolio diversification.
For our investors, the advice is clear; 2024 will bring with it some big shifts in the sportstech industry. Opportunities will present themselves when new technologies emerge and traditional markets adapt. As sportstech continues to evolve, the key will be in identifying and investing in those startups that not only innovate but also demonstrate sustainable and scalable business models. This calls for a keen eye on trends that are shaping the future of sports, such as the increasing integration of AI, the rise of women’s sports, and the recalibration of consumer tech valuations.
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- Source: https://www.financemagnates.com//fintech/ais-influence-in-sports-extends-to-fan-engagement-and-sports-marketing-apex-ceo/
