Sport is poised to become increasingly politicized as governments seek to leverage its broad public appeal, according to Adam Kelly, British president of global sports marketing firm IMG. Speaking during Wimbledon, Kelly highlighted a growing trend of political involvement in sport, driven by its unique ability to unite large audiences amid a fragmented entertainment landscape.
Kelly, who has led IMG for nearly seven years, noted that the enduring social significance of sport could prompt heightened government engagement worldwide. “Sport is playing an increasing role in society as other dynamics fall away,” he said. “If that is true, then you’ve got to think, well, governments are going to get increasingly involved.”
This forecast comes against the backdrop of what many observers have described as the most politicized FIFA World Cup in history. The tournament has witnessed several politically charged incidents, including former U.S. President Donald Trump successfully lobbying FIFA to overturn a red card suspension for a U.S. player, a referee ensnared in immigration policy controversies, Argentine players asserting disputed territorial claims during matches, and a match between Iran and Qatar labeled as an official gay pride fixture. Meanwhile, IMG’s hospitality division attracted attention for providing pitchside sit-down meals, prompting surprise among some European spectators.
IMG operates under TKO Group Holdings, a $35 billion New York-listed conglomerate also owning World Wrestling Entertainment and the Ultimate Fighting Championship (UFC). The company has seen robust business growth in 2023, driven in part by lucrative luxury hospitality sales during the Winter Olympics. TKO recently hosted UFC Freedom 250, a mixed martial arts event held on the White House lawn to commemorate the United States’ 250th anniversary, featuring elaborate stunt setups in line with conservative American tastes. TKO CEO Mark Shapiro has downplayed suggestions of political messaging around the event.
Kelly also pointed to the deep-rooted social role of sport as a communal gathering point, likening fan engagement to religious congregation. He referenced a recent Arsenal league victory, which drew 200,000 supporters to the team’s stadium, illustrating sport’s power to foster collective identity.
The influence of politics in sport is evident in policy discussions, with figures like Andy Burnham, involved in the creation of a new football regulator in 2020, pushing for more radical reforms such as mandated fan ownership. Despite this, traditional sporting institutions like Wimbledon, with which IMG has collaborated on commercial rights for over five decades, continue to reflect amateur-era values amid a rapidly changing commercial environment.
Recent geopolitical tensions, particularly the conflict involving Iran, have prompted a reassessment among major sports investors, notably the sovereign wealth funds of Gulf states. Saudi Arabia’s Public Investment Fund, a major backer of global sports ventures, has begun withdrawing funding from projects like LIV Golf, reflecting a new strategic caution. Kelly emphasized that capital infusion alone does not guarantee success, warning sports entities against prioritizing short-term financial gains over cultivating genuine fan bases.
He cited LIV Golf’s failure to build an authentic audience as a critical misstep and noted that some sports bodies have suffered from accepting sovereign and private equity investments without fully understanding their long-term impact. The private equity firm CVC’s involvement in rugby is frequently mentioned as an instance where financial objectives clashed with sporting culture, resulting in questionable benefits for the game.
Kelly views these developments as a positive correction in the sports investment landscape. While capital remains available, he said decision-makers are now exercising greater scrutiny. “There’s a tightening of the rationale, not necessarily the tightening of capital,” he stated, adding that this shift should support more sustainable growth.
The broader sports media rights market is also undergoing significant transformation. The decline of traditional broadcast outlets has spurred consolidation among legacy players such as Sky and ITV in the United Kingdom. At the same time, tech giants including Netflix, Apple, Amazon, and YouTube are aggressively entering live sports rights, introducing new dynamics into the marketplace.
Although IMG’s media rights revenue has plateaued in 2023, Kelly expects an acceleration in value as these global technology companies refine their capabilities to monetize premium live audiences. “Sport drives attention, and the attention economy is one of the oldest economies in history,” he said. “The value of sport will increase as these companies bring their expertise to the sector.”