Opportunities for the Sports Industry in Brazil: a Changing Scenario

Rene Guedes, Senior Consultant – Luzio Strategy

The sports industry in Brazil is undergoing a profound transformation, driven by the increase in sponsorship, public and private investment in Olympic and Paralympic programs, and the growing professionalization of sports management. This movement not only strengthens high-performance sport, but also opens up a range of opportunities for the development of a robust ecosystem, ranging from infrastructure and technology to social inclusion and job creation. It is estimated that the Brazilian sports market generates more than R$100 billion a year, equivalent to 1% of GDP, taking into account sponsorships, broadcasting rights, ticket sales, merchandising and sports tourism. This scenario consolidates the sector as one of the most dynamic and promising in the national economy.

Management Rationalization as a Competitive Boost

One of the pillars of this transformation is the adoption of modern management methodologies by clubs, federations and sports bodies. However, this change has not been easy. For years, sports management in Brazil, especially in soccer, was marked by passionate decisions, based more on emotions than rationality. Managers who prioritized passion over technical competence made chronic mistakes, such as overpriced signings and a lack of medium- and long-term planning, resulting in recurring crises and a loss of competitiveness. The vision was always short-term, focused on immediate results to satisfy pressure from fans and the public.

In this context, the Brazilian Paralympic Committee (CPB) stands out as an inspiring example. The organization adopts transparent, data-based governance models, focusing on the preparation of athletes and support professionals, as well as investing in its own infrastructure and state-of-the-art technology for training and recovery. It's no wonder that the Brazil Paralympic Team has been among the top 10 medal winners since Beijing 2008 and achieved 5th place in Paris 2024. A medal starts with planning, discovering talent and executing projects efficiently.

This management model could serve as an inspiration for the Brazilian sports community. Adopting similar practices could increase the competitiveness of clubs and federations, attracting more investment, sponsorship and attention from the specialized press.

Opportunities beyond the games

The increase in resources, both public and private, could promote a real revolution in the sports industry, involving every link in the production chain. Here are some potential opportunities:

1. Sports infrastructure. The demand for modern and technologically advanced facilities opens up space for investment in the construction, renovation and maintenance of stadiums and training centers.

2. Technology and Sports Science. Technology is also crucial to discovering adjustments in movements and game techniques that increase the performance of the athlete's body, using modern data analysis tools.

3. Marketing and Sponsorship. With increased public interest, brands have the chance to associate themselves with clubs, athletes and events, creating campaigns that generate engagement and brand appreciation, including on their own streaming platforms.

4. Social Inclusion and Human Development. Sport is a powerful tool for promoting inclusion and personal progress. Programs in underprivileged communities can reduce inequalities by offering opportunities for education, health and professionalization.

5. Sports Tourism. Large-scale events attract tourists, generating revenue for hotels, restaurants and transportation. Cities that invest in infrastructure and promote events can benefit economically.

6. Media and Entertainment. The popularity of Olympic and Paralympic sports, coupled with the success of disciplines such as volleyball, basketball and soccer, creates opportunities for content production, such as documentaries, series and live broadcasts.

7. Gamification of the Sports Fan. Digital platforms allow fans to accumulate points, take part in promotions and interact with their idols, creating a more immersive experience and generating new sources of revenue for clubs.

8. Boosting Business throughout the Value Chain. The sports industry drives sectors such as sports equipment manufacturers, technology start-ups (sportechs) and life sciences companies, which develop products related to health, nutrition and well-being.

9. Increased operational efficiency through the adoption of modern management practices. The correct prioritization of initiatives and rational allocation of resources provides clubs with greater assertiveness and efficiency in the application of their investments. And these decisions, structured on the basis of a good Strategic Planning exercise, give institutions a sense of stability and organization that enhances the opportunities offered by the market.

The ball is in the net: the window of opportunity for Brazilian soccer

A recent article in The Economist highlighted Brazilian soccer as a business on the rise, attracting international attention for its economic potential. The publication pointed out that while Brazil continues to export world-class talent, the domestic market is becoming more attractive to investors, driven by sponsorships, broadcasting rights and a passionate fan base. However, challenges such as creating a league with clear rules on governance and financial management, as well as an over-reliance on player sales, show that we are still relatively far from the economic potential that Brazilian soccer can achieve.

Examples of clubs like Fortaleza and Mirassol show that it is possible to combine sporting success and financial organization. Both have stood out for their winning campaigns and professional management models, serving as inspiration for other clubs.

Challenges and Future Prospects

Despite the promising scenario, the sports industry in Brazil still faces challenges, such as the precarious infrastructure in much of the country, the lack of public policies aimed at sports training from childhood and the absence of a widespread multi-sport culture. In addition, it is essential that financial resources are distributed equitably, benefiting not only soccer, but also less popular sports.

In soccer, it is necessary to establish rules that promote the financial sustainability of clubs and an organizational model that generates value for everyone, from the grassroots to the top series. This is no small challenge, but it is essential for the growth of the sport.

The outlook, however, is positive. With efficient public policies, collaboration between the public and private sectors and the engagement of society, Brazil has the potential to consolidate itself as a global sporting powerhouse, generating positive impacts in all spheres of the economy and society.

Luzio Strategy has supported the Brazilian Paralympic Committee in formulating its Strategic Plan for the next 12 years, helping to strengthen Brazilian sport and generate value - both sporting and business - for this promising industry.