via: Best Practices For Investors Exploring The Youth Sports Industry by Jason Clemet Cofounder and CEO of The Sports Facilities Companies (SFC), a large network of community-based sports facilities.
Youth and amateur sports are emerging as significant drivers of economic development across the United States. Multipurpose sports facilities are transforming communities, contributing to growth in hospitality, real estate, and dining sectors, while also increasing local property values.
Key Points:
- Economic Impact: The youth sports tourism industry generated $39.7 billion in direct spending in 2021.
- Growth Projections: Expected to grow at a compound annual growth rate of 8.9% until 2028.
- Success Story: Grand Park Sports Complex in Westfield, Indiana, generated $3 million in profit in 2021 and attracted 3.5 million visitors in 2022.
- Cautionary Tale: Legacy Park in Mesa, Arizona, filed for Chapter 11 bankruptcy after defaulting on $283 million in bonds.
Investment Considerations:
- Thorough research and due diligence are crucial
- In-depth feasibility studies are necessary
- Selecting the right operating and management partners is vital
- High-quality facilities are essential to attract both locals and tourists
Technology Trends:
- Team management platforms like GameChanger and SportsEngine
- Event organization networks like Playeasy
- Advanced sports lighting systems
- On-field innovations such as smart backstops and robotic umpires
- Growing use of AI and wearable technology
Best Practices for Investors:
- Strategic and smart capital allocation
- Focus on community engagement and support
- Continuous market analysis and feasibility studies
- Cautious financial planning
- Consider multipurpose playing surfaces to ensure sustainability
