Climate Change Threatens Global Sports Industry

The global sports industry, which generated about US$2.3 trillion in annual revenue last year, could lose up to US$1.6 trillion by 2050 as climate change and rising physical inactivity disrupt events, infrastructure and participation, according to a report by Oliver Wyman and the World Economic Forum (WEF). The report estimates that sports revenues could grow to US$3.7 trillion by 2030 and US$8.8 trillion by 2050 under current expansion trends. However, accelerating climate impacts could reduce annual revenues by as much as US$517 billion by 2030, undermining one of the world’s fastest-growing economic sectors.

According to the analysis, heat stress represents the single largest physical risk to sports revenues. Rising temperatures are increasingly making certain locations, seasons and times of day unsafe for competition, forcing organizers to reschedule, shorten or cancel events. These disruptions directly affect broadcast rights, sponsorship contracts and ticket sales.

Extreme weather events, including heat waves, floods, wildfires and stronger storms, are also reducing the reliability of critical infrastructure such as stadiums, training centers, transport systems and power grids. The report notes that these risks are not limited to marquee global competitions, but increasingly affect local leagues, regional tournaments and amateur sports, weakening the economic base of the sector.

Heat stress also poses growing health risks to athletes, increasing the likelihood of heat-related illness and injury. This raises liability and reputational risks for leagues and organizers that fail to adapt safety standards to changing climate conditions.

Climate change is also disrupting the sports industry through its broader value chain. Extreme weather and environmental degradation are affecting the production and distribution of sporting goods, driving up costs and squeezing margins. Sporting goods manufacturers and event organizers face delays and volatility linked to raw materials, logistics and energy supply.

The fan base is also under pressure. The report finds that one in five people globally already struggles to engage in outdoor physical activity due to climate conditions, reducing participation, merchandise sales and long-term consumer engagement. Over time, this trend threatens the industry’s growth pipeline.

Environmental degradation, including biodiversity loss, water scarcity and air pollution, further constrains the viability of outdoor sports venues, particularly in dense urban economies where sports play an outsized economic role.

Winter Sports Highlight Structural Exposure

Winter sports are among the most exposed segments. WEF estimates that only 10 countries will have sufficient snow reliability to host the Winter Olympics by 2040. A 2021 study cited in the report found that, of the 21 locations that have hosted the Winter Games since 1924, only four would remain viable by mid-century under severe warming scenarios.

In Europe, winter tourism generated roughly US$213.9 billion in 2022, with the Alps serving as the industry’s core. A 2023 study published in Nature Climate Change predicts that 53% of Europe’s 2,234 ski resorts will face very high snow risk under a 2°C warming scenario. Under a 4°C scenario, up to 98% of resorts could become unviable.

Artificial snowmaking offers only limited relief. While production costs can reach US$18,000/ha, researchers note that water availability and environmental impacts make it an increasingly fragile solution. “Even for resorts that are less impacted by climate change, we need to rethink business models and adapt them to the consequences of global warming,” said François Hugues, Researcher, France’s National Institute for Agriculture, Food and the Environment.

Despite these risks, the sports economy continues to expand. WEF estimates that four core segments, professional and elite leagues, grassroots sports, sporting goods and sports tourism, generate about US$2 trillion annually, with another US$300 billion coming from related industries such as broadcasting, gaming, nutrition, wearables and sports services.

Sports tourism, the largest revenue driver, is expected to account for 60% of total sports economy growth through 2030. The sector’s expansion has also been fueled by the rise of sport as an asset class, the mainstreaming of women’s sports and growth in emerging markets.

However, the report warns that failing to integrate climate and health risks into financial planning could lead to overestimated returns and stranded investments. “As the global sports economy enters a phase of accelerated growth, its long-term success will increasingly depend on the choices made today. Failure to acknowledge this convergence risks overestimating future returns while undervaluing the true economic, environmental and social costs of inaction,” the report states. 

The authors argue that protecting sports revenues will require integrated action across governments, leagues, cities, investors and governing bodies. Priorities include targeted financing for climate resilience, adaptation of infrastructure, responsible resource management and scaling initiatives such as Sports for Climate Action and Sports for Nature, backed by the United Nations.

The report concludes that climate risk management is no longer optional for the sports industry. As environmental pressures intensify, the sector faces a strategic choice: lead the transition toward resilient, sustainable models, or absorb mounting economic losses as climate change reshapes the rules of the game.