The popularity of traditional team sports in the U.S. is being undermined by four key issues: the struggling U.S. economy, the emergence of developing sports, overall declines in “pickup” play, and a rising interest in single-sport specialization. That comes from  an analysis of the Sporting Goods Manufacturers Association's (SGMA) annual participation study on team sports.

“One of the biggest factors affecting team sports play has been the struggling U.S. economy,” said SGMA President Tom Cove. “Frankly, many families have not been able to afford to pay the basic fees for their children to play in local recreational sports programs or to play on some travel teams.  The increased popularity of developing sports like lacrosse, rugby, paintball, and ultimate frisbee has attracted athletes who used to play traditional sports like football, basketball, and baseball.  The continued overall decline in “pickup” and sandlot play in neighborhoods and parks continues to hurt overall participation numbers. Finally, the three-sport athlete in high school is a dying breed.  So many young athletes, especially in high school, focus their attention on just one or two sports throughout the year as opposed to playing one sport in the fall, one in the winter, and one in the spring.”

While 'pickup' and sandlot play for team sports, as a whole, is down across the country, some team sports are showing an increase in 'pick-up' play.  In 2008, there were seven team sports where 'casual/pick-up' play exceeded organized/sanctioned play. Those sports were basketball, ice hockey, field hockey, touch football, lacrosse, grass volleyball, and beach volleyball.  SGMA believes this is the result of athletes and their families feeling the pinch of the economy and choosing less expensive ways to play sports by using public facilities such as parks for 'pick-up' games of basketball, grass volleyball, beach/sand volleyball, and touch football, for instance.

“Last year was a challenging time for millions of Americans.  The first six months of the year were very typical, but during the last half of the year, many Americans hit the 'reset button' on how they live,” said Rich Luker of the Luker Company, a veteran analyst of community trends in the U.S.   “Concern about high gasoline prices and the mortgage crisis impacted sports participation patterns and how American families spent money to support their athletic interests.  Overall, sports that cost more or took more involvement to play took a 'hit' and many people were more focused on life essentials than on exercise or enjoying athletic competition.  The financial challenges which families faced last year caused them to look for easier, inexpensive athletic outlets – which is reflected in the increased numbers of people who played simple to access sports just a few times a year.”
    
Sports that had respectable gains in participation since 2007 are court volleyball (up 17.2%), indoor soccer (up 11.8%), rugby (up 11.8%), and beach volleyball (up 7.5%). Overall play in high school sports rose again as a record 7,429,381 high school students played high school sports in the 2007-08 school year.

Other key economic factors now driving the team sports business include the following:

  1. Retail Changes — The continuation of consolidation at the team dealer level as large regional team dealers are rolled up into larger, national organizations.
  2. Product Innovation — It's the lifeblood of the industry and it's sparking rearrangement of team dealer networks as new brands with innovative products are looking for self space and established brands are moving to reinforce their existing franchises with team dealers in the footwear, protective and uniform categories.
  3. Rules and Standards — Changes by the governing bodies of sports are creating challenges for manufacturers as the governing bodies seek to control the sport venue and manufacturers continue to seek ways to differentiate their products.
  4. School Budget Considerations — Despite signs of economic recovery, reduced budgets are coming into effect as schools finalize their team equipment purchases for the 2009-2010 school year. While the core team business will continue to be a strong engine driving the sporting goods industry, SGMA believes the next 12 months will be a challenging period of time for those in the team sports business.