The Italian sports world accounts for more than 3.4 percent of GDP, growing soccer, swimming, cycling and eSports. With more investment in the sports industry, Italy in 2023 will benefit from major sporting events and shows, and digital forms of entertainment. These are the conclusions of the Rome Business School report “Sport as a driver of the Italian economy. Esports and Ryder Cup 2023 as opportunities for growth,” written by Tommaso Marazzi, Expert in Sports Business and Valerio Mancini, Director of the Rome Business School Research Center Director.
Despite the fact that in Italy public spending in the sports sector (€4.7 bn in 2022) has increased by an average of 3% per year over the last decade, its incidence on national spending remains lower than the European average (0.5% vs. 0.8%), and lower in particular in relation to other EU countries: with €13.7 bn, France is the leading country in terms of public support for sports activity, followed by Germany with €9 bn. Spain has values closer to Italy with an expenditure of 5.1 bn€, but the incidence on national public spending was 1 percent (double that of Italy).
In spite of this, the multiplier effect of investments in Sport System made in 2021 was remarkable: 1 mln€ of public investment activated about 8.9 mln€ of private resources (41.8 bln€ against public spending of 4.7 bln€) resulting in an annual turnover of 96 bln€, more than 20 times the initial public investment.
This has caused positive results even in 2022 and until today, “this shows that it is not possible to ignore the combination of public spending, and its driving force,” says Tommaso Marazzi.
The Ryder Cup 2023 represents for Rome, and Italy a key event after the “no” to the 2024 Olympics in the capital. As of today, there are only 398 golf courses in Italy (throughout Europe there are 6,000), and precisely because of this, the event aims to make Rome a place of reference for golf enthusiasts from all over the world, especially from Asia and America. This is through the “Road To Rome” 2023-2027 project, outlined by the Italian Golf Federation, with an estimated cost of about 157 million euros and government funding of 60 million. Strong impact on the economy: the per capita spending generated by golf travelers is very high, with average daily costs ranging from €110 to €230, about 3 times higher than that of other tourists. The direct and indirect impacts expected from the organization of the 2023 Ryder Cup will amount to about €513.4 million, divided into several categories, including increased domestic demand, tax revenues, and tax revenues from tournament prize money.
In 2022, Italian sports demonstrated remarkable resilience and ability to generate economic value, overcoming a series of difficulties caused by the pandemic. Total revenues from the sports sector reached a record high of more than 102 billion euros in 2022, showing growth compared to pre-crisis figures (+6.25 percent). Although the share of GDP dropped slightly to 3.4 percent (vs. 3.6 percent) due to restrictions on participation in sports events in the first half of the year, it remains significant.
A key point is employment in the sports sector, which increased +4% in 2022 compared to 2021, with more than 405,000 people working in various roles (+16,000). In sports publishing, on the other hand, sports events and sports betting saw a significant increase in revenues in 2022, up +16% compared to 2019. Betting, in particular, accounted for nearly 13 percent of legal gaming in Italy in 2022, generating €16.5 billion in revenue.
In addition, there was an increase in both the number of sports clubs (+3.1 percent) and overall spending on sports tourism, which exceeded €7.2 billion in 2022, signaling a substantial realignment to pre-crisis values. In fact, in 2019, there were 32 million presences at sporting events for a total expenditure of €7.6 billion, 50% of which was generated by Italians not resident in the place of the event. In terms of annual spending items, it is accommodation that contributes 33 percent, followed by catering (16 percent) and shopping (14 percent), with transportation accounting for only 6 percent.
Finally, the positive externalities generated by the sports sector reached 11.4 billion euros in 2022, reporting an increase of +13% compared to 2019. This increase was mainly driven by people’s growing interest in playing sports, involving 66% of the Italian population. Soccer continues to be the most popular sport, followed by swimming and cycling.
Soccer in Italy has a significant socioeconomic impact, with an estimated value of more than 4.5 billion euros in 2022, according to the FIGC’s ReportCalcio 2023. During the year, the soccer industry generated direct revenues of 5 billion euros and contributed significantly to GDP, with a value of 11.1 billion euros and the creation of nearly 126,000 jobs.
With 99 professional soccer clubs in the country, soccer accounts for 73.1 percent of the contribution of the Italian sports sector. In fact, over the past 15 years, this contribution has amounted to 16.8 billion euros, with a remarkable multiplier effect of 18.9 for every euro invested. Despite this, there are many steps still to be taken. The soccer industry in Italy could benefit greatly from investment in infrastructure, but in the past 15 years, only five new stadiums have been inaugurated in the country, representing only 1 percent of total investment in Europe.
“Italy needs to develop a strategic plan to expand club revenues, reducing dependence on television rights, which are still the main source of revenue, accounting for 44 percent of revenues. A fundamental step for the rebirth of the soccer product in Italy is certainly a process of renewal of sports facilities,” says Tommaso Marazzi. In particular, we need to seize the opportunity to host the 2032 European Championships together with Turkey is a once-in-a-lifetime opportunity for both institutions and clubs in order to achieve a general renewal of the system, an indispensable element to drive the growth of the soccer product and beyond.”
IIn Italy, sport goes far beyond the competitive aspect, deeply permeating Italian culture and society. Italians’ interest in eSports is also growing, a fertile ground composed of 14.2 million people (32% of the population aged 6-64), 1.6 million of whom follow eSports events more than once a week. It is also worth noting the possibilities this sector offers to brands and digital finances: 67% of the Italian eSports fanbase claims to have a good knowledge of fan tokens and NFTs (Report on eSports in Italy 2022, IIDEA). The sports landscape is therefore undergoing a major transformation,
“The future promises innovation and significant changes, and adaptability and openness to exploring the fascinating territory of esports will be key for Italy and clubs to be able to maintain a position of relevance in the world of sports and sports entertainment,” Valerio Mancini concludes.