● From our sister site, TheSportsExaminer.com ●
The sports economy of Los Angeles, one of the world’s busiest sports cities, exploded in 2023, growing by almost a third to a record $11.7 billion and 83,880 jobs.
And none of that was related to the upcoming 2028 Olympic Games, to be held in Los Angeles.
Revealed at the Los Angeles Sports Council’s Innovation Conference held at the new Intuit Dome in Inglewood, California on Monday, the annual study by the Los Angeles County Economic Development Corporation (LAEDC) used in-depth (and confidential) data provided by the area’s teams and related companies to estimate the economic impact of sports in the Los Angeles region.
The bottom line: it’s big and rapidly getting bigger. Per the report:
● “The increase in economic activity resulted from the sizeable growth in the sports industry. Direct revenues grew by more than $816.2 million from 2022 to 2023, a 22% increase. Most of this growth ($749.6 million) came from professional sports, through additional events, higher ticket prices, and higher wages.
● “In 2023, the sports industry in the region supported 83,880 total jobs, an increase of 450 jobs from 2022. Professional sports played a more significant role, adding over 1,700 jobs, while collegiate sports saw a reduction of more than 1,200 jobs. As a result, professional sports accounted for 84.6% of the total jobs and direct revenues in the industry, up from 83.0% the previous year.
● “Attendance at professional sports events grew by an average of 4.3% across all major teams in the MLB, MLS, NBA, NFL, NHL, NWSL, and WNBA from 2022 to 2023, reflecting strong local support.”
Consider the comparisons to the prior two years:
● 2023: $11.7 billion total economic output
● 2022: $8.9 billion
● 2021: $7.0 billion
Direct spending was $3.8 billion for professional sports and approximately $692 million for collegiate sports (about $4.49 billion total), with indirect and induced impacts adding up to the $11.7 billion total impact last year. About 84.6% of all economic activity came from professional sports events.
● 2023: 83,880 sports-related jobs
● 2022: 83,430 jobs
● 2021: 39,790 jobs (pandemic)
Jobs directed created by sports in the L.A. area totaled 46,740, with another 37,140 from jobs indirect and induced jobs from activity and earning in the sports industry. Labor income was $8.9 billion, with 85.4% from the pro sports sector.
● 2023: $704.8 million estimated state & local taxes
● 2022: $365.1 million
● 2021: $363.6 million
This does not count Federal income taxes, estimated to be more than $1.84 billion for 2023.
There are additional contributions by smaller events outside of the pro and collegiate sports teams, such as the Rose Bowl Game – estimated to be worth $119 million to the area economy for the 2024 game, a College Football Playoff semifinal – and highly-attended soccer matches, annual events such as the Long Beach Grand Prix and NFL training camps, and sports-related companies in the area, such as the NFL Network.
The future looks bright as well, with the Intuit Dome – where the conference was held – now open, and additional one-time, mega-events coming such as the 2026 FIFA World Cup and, of course, the 2028 Olympic and Paralympic Games.
It’s worthwhile to consider that while 67% of the LA28 budget of $6.9 billion is expected to be spent in 2028 alone – that’s $4.6 billion – that amount will be significantly less than the direct spending of the rest of the sports industry in the greater Los Angeles area in that year.
That’s from the area’s 12 major professional league teams and the eight universities that play today in the NCAA’s Division I. Are there more coming?
~ Rich Perelman
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