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Shifts in technology and consumer behavior are seemingly redefining the way fans enjoy sports, both at home and in person. Fans play a significant role in driving the enormous popularity and unique role of professional sports in our society. That’s why it’s important for sports leagues, teams, organizations, and media and entertainment companies to truly understand these shifts and fans’ complex passions and proclivities.

Fans have access to a mind-boggling amount of sports content across multiple platforms, but this increasingly complex media environment could impact the engagement and passion of the next generation of fans. These shifts could also present monumental opportunities to connect with fans and forge deeper connections. To help better understand what the broad sports ecosystem may need to do to shape this emerging future, there are some critical questions that should be investigated.

What is the current state of sports fandom? Are young fans engaged? How are their behaviors different from fans in older generations? How much are fans using streaming services and what do they want from their streaming providers? How fully are fans engaging across the digital channels they have access to? How are social media and sports betting impacting a fan’s experience and expectations? Will virtual reality (VR) ever become a mainstream way to engage with sports? Can digital assets, like NFTs, become a sustainable market for sports?

To help answer these questions and more, Deloitte surveyed more than 3,000 US sports fans ages 14 and older.

The current state of sports fandom is strong … for now

Despite the shifting landscape, sports fans still seem to be very enthusiastic. Data from Deloitte’s Sports Fan Insights survey shows that current sports fans are quite passionate and willing to invest their time and money into their fandom. Over three-quarters of those we surveyed rated their sports fandom a seven or higher (on a scale of one to ten).1 Additionally, nearly 90% of fans say that their fanhood has grown (37%) or stayed relatively the same (52%) over the past three years. Coming out of the COVID-19 pandemic, where sports suffered significantly, this is an improvement.2

The reason why fans say they’re fans? It may seem simple, but almost 70% of fans say it’s because sports are entertaining. Of course, sports can be more than just fun and games. Fans surveyed also like sports because of their friends’ or family’s influence, sports give them something to look forward to, and they are a source of tradition. What creates these passionate fans? Participation in sports is a common thread. Sixty-eight percent of fans surveyed said that they currently participate in sports or have in the past. When asked to pick a single reason for the genesis of their fanhood, around a third of fans attribute it to their participation in youth sports—the top overall reason.

When asked to pick a single reason for the genesis of their fanhood, around a third of fans attribute it to their participation in youth sports—the top overall reason.

With concerns over the state of youth sports and participation rates, this could signal trouble for the fan base of the future.3 Add to that the myriad of entertainment options available to younger people today—including video games, social media, user-generated content, and streaming services—and it could become easy to worry that sports won’t be able to maintain the same historical level of interest.

However, current sports fans age forty and under are just as engaged as those over forty. Seventy-two percent of Generation Z fans and 82% of Millennial fans rate their fandom a seven or higher (on a scale of one to ten). The passion of Gen Z fans is growing as well—60% said that they were more of a fan today than they were three years ago. This suggests that they are still growing into, and establishing, their sports fanhood.

Going forward, to keep the state of sports fandom strong and attract new fans, who may not have participated in youth sports, the sports ecosystem may have to evolve. This includes focusing on entertainment value and providing a more interconnected and interdependent digital tapestry of experiences for younger fans.

Enter the era of immersive sports

Emerging technologies and ways to consume entertainment are creating new possibilities for the sports industry and advancing the era of immersive sports. In this era, fans could expect to be able to craft their own unique, personalized, digital sports reality. Every fan won’t have the same experience, even if they’re watching the same live sporting event. Fans could be able to dictate:

  • What they want (content)
  • When they want it (timing)
  • Where they want it (channel)
  • Who they want to experience it with (community)
  • How they want to consume it (delivery)

This might look like placing real-time bets through mobile devices at home or in-venue, watching a game from a player’s point of view in VR, instantly buying unique merchandise from an event through a streaming video service, or sharing custom, real-time statistics with friends via social media. Fans will be able to seamlessly pick and choose what capabilities they want to meet their needs at any given moment. Immersive sports will integrate digital channels to fulfill the desires of fans—providing as much, or as little, enhancement to the live event as possible.

deloitte.com/insights Figure 3 Many fans, especially younger ones, are multi-tasking while watching sports at home Percentage of sports fans who do the following activities while watching live sporting events from home Note: N (US sports fans who watched live sporting event from home) = 2,980. Source: Sports fan insights (June 2023). Generation Z Total Millennials Generation X Boomers 44% 36% 34% 22% 15% 15% 13% 11% 51% 49% 49% 34% 51% 46% 39% 18% 44% 47% 35% 19% 21% 30% 23% 15% 22% 24% 16% 6% 17% 25% 18% 4% 17% 20% 14% 5% 22% 18% 7% 2% Use social media to read comments and opinions from others Use social media or a messaging service to interact with others Watch another game on a separate device Bet on a website or mobile app (21+ yrs) Play fantasy sports Purchase sports merchandise or memorabilia Play a game related to the event Look up player or team statistics
deloitte.com/insights Figure 4 Sports bettors are more engaged than non-bettors Percentage of sports fans who have done the following in the past 12 months Note: N (Non-bettors) = 2,098; N (Sports bettors) = 607. Source: Sports fan insights (June 2023). Watched a sporting event on TV or online Attended a live sporting event in-person Purchased sports merchandise or memorabilia Paid for a subscription to a streaming video service to watch sports Participated in a fantasy sports league (either paid or free) Purchased or maintained season tickets or a ticket package Non-bettors Bettors 83% 44% 42% 2 7% 12% 9% 83% 61% 42% 58% 38% 1 7% 83% 44% 42% 27% 12% 9% 83% 61% 42% 58% 38% 17%

We found that bettors are already including betting into their fan behaviors, with a desire to potentially integrate even further. While at home, 58% of sports bettors say they have bet through a website or mobile app while they watched live sports. In venues, 23% of sports bettors say they use their mobile device to place sports bets while attending a live sporting event. Looking into the future, 66% of sports bettors say they want the capability to bet on different aspects of a game in real-time on their mobile device while they attend an event in person.

When looking to integrate betting into the fan experience, it’s important to address the sentiments of non-bettors as well. They’re more concerned than bettors about several issues. Looking at the issue of advertising, 66% of non-betting fans say they’re tired of seeing so much advertising around sports betting (compared to 48% of bettors). Could the United States follow the UK and some European countries where sports betting has been legal for a long time and there are an increasing number of advertising and sponsorship restrictions?12 Looking more broadly, 59% of non-bettors say they worry about the long-term impacts of sports betting on professional sports—compared to only 42% of bettors. This reflects the feeling that the more prevalent sports betting becomes in the United States, the chances for mistakes and abuse could grow.13

Questions to consider

  • How can the passion of sports bettors be harnessed while keeping them safe?
  • As the capability to bet on games in real-time (via microbetting) at home and in person becomes more widespread, what will be the unanticipated consequences to the broader fan experience?
  • How can the inclusion of betting be better personalized, so fans who find it objectionable or uninteresting don’t become estranged?

Insight No. 5: VR is still on the undercard. What will it take to make it the main event?

There are a variety of emerging digital engagement channels seeking the attention of sports fans; one of those is virtual reality (VR). Sports and VR seem like the perfect pairing. VR could be the ultimate way to make fans feel like they’re a part of the game. Deloitte estimates that there will be an install base of about 22M VR headsets worldwide in 2023.14 And the capabilities of headsets are getting better and better—more processing power, better resolution, longer battery life, and a more comfortable experience. Early options to consume sports content in VR already exist for fans. During the most recent NBA season, Meta provided access to over 50 live NBA games, however, only 5 of them provided 180-degree monoscopic views.15

When given a list of six different sports-related VR experiences, roughly 70% of Gen Z and Millennial fans were interested in at least one of them.

The market is still niche for now. Only 5% of all sports fans surveyed said that they have used VR to consume some type of sports content in the last 12 months (for Gen Z fans, it’s 9%, for Millennials, 7%). However, there is definite interest. When given a list of six different sports-related VR experiences, roughly 70% of Gen Z and Millennial fans were interested in at least one of them. The top activities of interest for Gen Z and Millennials included playing sports-related VR games, watching live sporting events from an athlete’s POV, remotely attending a live sporting event, and cowatching an event with friends and family.

deloitte.com/insights Figure 5 Some younger fans show interest in consuming sports content via VR Percentage of sports fans who would be interested in regularly using a VR headset to experience the following Note: N (Generation Z sports fans) = 589; N (Millennial sports fans) = 684. Source: Sports fan insights (June 2023). Playing a sports-related VR game Watching a live professional sporting event from an athlete’s point of view Cowatching live professional sporting events with friends/ family Remotely attending a live professional sporting event Attending meet-and- greets with favorite athletes Shopping for sports merchandise or memorabilia 10% 0% 20% 30% 40% Generation Z Millennials

If VR becomes more widespread for watching sports, can the experience be monetized? When fans were asked if they would pay for a sports experience using VR (assuming they already had the right equipment), many Gen Z and Millennial sports fans were willing. Sixty-two percent of Gen Z and 66% of Millennial sports fans said they would pay to watch a sporting event in real-time from an athlete’s point of view in VR. In addition, 59% of Gen Z and 65% of Millennial sports fans said they would pay to watch a sporting event in VR from the seat of their choice at a venue.

Could live sports be the “magic” content that drives broad adoption of VR? It could hinge on overcoming the innate barriers to using VR, such as, expense, comfort, and isolation, and making it compelling for sports fans with unique content that they can’t get anywhere else. Fans seem to want things that can make them feel truly part of the action, like player POV, 180-degree field or court-level views, and integrated social connection.

Questions to consider

  • How can teams, leagues, and sports organizations better collaborate with their technology partners to codevelop unique and compelling VR experiences to drive greater adoption?
  • How can sports-related VR gaming be used as a bridge to increase broader interest in sports for younger people who may not be fans yet?

Insight No. 6: Fans prefer digital assets with real world benefits

Over the last few years, digital assets, like non-fungible tokens (NFTs) and fan tokens, have entered as a new way for sports fans to connect with their favorite leagues, teams, and players. Commemorative NFTs have been provided to ticket buyers, marketplaces for digital assets have been established, and NFTs are increasingly being integrated into fantasy sports.16 The broader market for digital assets has softened significantly from its peak, with overall sales, activity, and market value for assets seeing declines.17 The question is, can these channels remain a viable long-term way to connect with fans and improve fan engagement and loyalty? How can digital assets contribute to an immersive sports experience?

Familiarity with these digital assets doesn’t seem to be too much of a problem, especially with younger fans. Around 40% of Gen Z and Millennial sports fans said that they were very or somewhat familiar with the use of NFTs and fan tokens in sports. However, it’s still a niche market, with just around 5% of sports fans surveyed saying that they have purchased or received a sports- or athlete-related NFT or received a team fan token in the last 12 months. For those that are familiar with NFTs, what value do they see? There’s currently no clear consensus, with 37% of fans familiar with them seeing NFTs in sports as a fad, 32% as an investment, and 24% as something fun to express fandom.

When given the definition of a fan token and asked how likely they would be to purchase a token if a specific benefit were offered, there was overall enthusiasm from fans.

What may help is a clear connection between digital assets and well-defined benefits for the fan. They should provide additional utility, functionality, or redeemability to the owner. When given the definition of a fan token and asked how likely they would be to purchase a token if a specific benefit were offered, there was overall enthusiasm from fans.18 A random chance for free premium seats at live sporting events ranked highly, with 60% of sports fans saying they would likely purchase a fan token if that benefit were offered—almost three quarters of Gen Z and Millennial sports fans would. Other benefits of interest included free exclusive merchandise, the ability to win prizes or perks from participating in team polls, games, and quizzes, and attending exclusive events with athletes.

F ig ure 6 Note: N (All US sports fans) = 3,004. Source: Sports fan insights (June 2023). F r ee e x clusi v e me r chandise - Gene r a tion X Boome r s Gene r a tion Z Millennials 7 5% 6 7% 5 7% 28% 64% 7 4% 7 2% 3 9% 7 5% 7 2% 61% 3 7% 33% 58% 70% 6 7% 65% 50% 30% 18% 40% 60% 2 7% 5 1% 65% Fans would be interested in digital assets if the right benefits were offered Percentage of sports fans who would be very, or somewhat, likely to purchase a fan token if the following benefits were offered Being able to attend e x clusi v e e v e n ts with a thl e t es A r andom chance f o r f r ee p r emium s e a ts a t li v e sporting e v e n ts Abili t y t o win pri z es o r per k s f r om p artici - pating polls, games, and quiz z es Free ex clusi v e content to watch Early access to purchase season tickets Ability to vote on meaningful team or club decisions

The question arises, do fans really need a blockchain-based digital asset to get access to these types of perks? Could a simpler loyalty program work? One theory is that by digitally formalizing the relationship between fans and their favorite sports leagues, teams, and players, a more concrete sense of ownership can be established—one that accurately reflects the true value of the relationship.

Questions to consider

  • How can digital assets be more effectively integrated into traditional fan loyalty programs, bridging the physical and digital worlds?
  • How can leagues and teams increase awareness and reduce barriers to entry by integrating digital assets into existing fan engagement channels (e.g., mobile apps, gaming, social media)?

Research methodology

The Sport Fan Insights Survey was conducted by Deloitte’s Technology, Media & Telecommunications practice. The survey provides insight into the attitudes and behaviors of sports fans in the United States ages 14 and older. Topics included the nature of fandom, sports streaming, mobile devices and sports, in-venue experiences, fantasy and sports betting, social media, and additional emerging digital engagement channels.

The survey was fielded by an independent research firm in March 2023 and employed an online methodology among 3,004 US sports fans. All data is weighted based on the most recent census data to give a representative view of fan sentiment and behaviors.

Throughout this report, we reference generations. Our generational definitions are as follows: Gen Z (born 1997–2009), Millennials (born 1983–1996), Generation X (born 1966–1982), Boomers (born 1947–1965), and Matures (born 1946 and prior).

Pete Giorgio

Deloitte United States

David Jarvis

Deloitte United States

Brooke Auxier

Deloitte United States

Hannah Bobich

Deloitte United States

Kat Harwood

Deloitte United States

Endnotes

  1. Selecting “10” equated to “I spend a significant amount of time and/or money actively following and supporting athletes, teams, leagues, and/or sports.”

  2. Ben Cohen, Joshua Robinson, and Joe Flint, “Sports industry reels from coronavirus fallout,” The Wall Street Journal, March 29, 2020.

  3. Aspen Institute, Project Play, “State of Play 2022: Participation trends,” accessed June 15, 2023.

  4. Kevin Westcott, Jana Arbanas, Chris Arkenberg, Brooke Auxier, 2023 Digital media trends: Immersed and connected, Deloitte Insights, April 14, 2023. 

  5. Ibid.

  6. David Jarvis, Paul Lee, Pete Giogio, Kevin Westcott, Live sports: The next arena for the streaming wars, Deloitte Insights, November 30, 2022.

  7. Streamers to spend $8.5B on sports rights in 2023—Ampere (fiercevideo.com); YouTube Paying Roughly $2 Billion a Year for NFL Sunday Ticket - WSJ

  8. Lillian Rizzo, “Amazon wants its NFL coverage to come in different flavors,” The Wall Street Journal, August 1, 2022.

  9. David Rumsey, “YES Network rolling out live prediction feature on app via Simplebet partnership,” Sports Business Journal, March 29, 2022; Tom Bassam, “YES Network adds watch together functionality for Brooklyn Nets streaming,” SportsPro, October 25, 2021.

  10. Prince J. Grimes, “A running list of all the U.S. professional sports stadiums with sportsbooks,” USA Today, March 24, 2023; Tom Bassam, “DAZN Bet to launch with promise of integrated product,” SportsPro, April 20, 2022; Richard Lawler, “Fubo TV shuts down its sports betting service that synched with on-screen action,” The Verge, October 17, 2022.

  11. Daniel Kaplan, “Sports gambling ads are everywhere. Should they be restricted—or even banned?The Athletic, May 12, 2023.

  12. Tom Hamilton, “Premier League clubs agree to drop gambling sponsors from front of shirts,” ESPN, April 13, 2023; Marine Strauss, “Belgium bans gambling advertising from July 1,” Reuters, March 9, 2023.

  13. David Purdum, “Inside the NFL’s gambling policy and uptick in violations,” ESPN, June 5, 2023.

  14. Paul Lee, Chris Arkenberg, Ben Stanton, Allan V. Cook, Will VR go from niche to mainstream? It all depends on compelling VR content, Deloitte Insights, November 30, 2022.

  15. Meta Quest Blog, “Basketball Diaries: Our partnership extension with the NBA,” Meta, January 23, 2023.

  16. Andrew Cohen, “DraftKings to launch Reignmakers as the first NFT Fantasy Football game,” Sports Business Journal, May 9, 2022; David Adler, “The newest MLB digital collectibles for 2023,” Major League Baseball, April 10, 2023.

  17. Josh Sim, “Report: Candy Digital cuts over a third of staff amid NFT sales decline,” SportsPro, November 29, 2022.

  18. A digital asset created on a blockchain that can be bought and sold that provides access to specific services and benefits for the owner.

Acknowledgments

The authors would like to recognize and sincerely thank Akash Rawat for his work in analyzing survey data and uncovering key insights, as well as his contributions to originating and developing the overall study. We would like to thank Gautham Dutt for his design and visualization support. We would also like to thank the members of the Deloitte US Sports Practice for their guidance and expertise. 

Cover image by: Jaime Austin and Alexis Werbeck