The business model for professional sports teams is changing from media-centric to engagement-centric—all driven by the fans. If sports teams do not pivot, they could be at risk financially. They must better understand today’s fans and apply digital tools to meet their needs.

By 2026, 41.6 percent of the U.S. population will have become ‘cord-cutters,’ meaning that almost half will cancel their subscriptions to multichannel television services available over cable or satellite, stop paying for television channels or reduce the number of hours of subscription TV they view in favor of rival media available over the internet.

The generational divide is real in the sports industry. Younger audiences are increasingly viewing short-form content of sporting events. Instead of following teams and leagues, they are following players and their social platforms. In fact, 33 percent of Gen Z do not watch live sporting events, one in five have not attended a live event this year and 28 percent are apathetic toward sports. It’s clear that for sports fans, the game is looking a lot less recognizable. And that should make major leagues take action.

Social platforms that extend engagement beyond the ‘game’ offer alternative storylines and channels to connect with players, communities and sports. The race for meeting Gen Z and other fans where they are and finding inventive ways to engage with them authentically from a sports brand perspective is in high gear. But in doing so, media properties, leagues, teams and ancillary experiences like fantasy, sports betting, stats, memorabilia and long-form editorial are often creating a fragmented environment, one where fans don’t recognize their team in a way that makes sense to them. 

In the most disconnected of experiences, sports fans are forced to traverse multiple platforms to find what they are looking for. The challenge remains to create unified and impactful experiences across multiple channels that engage and retain sports fans’ attention beyond one game at a time.

In addition, new kinds of fan bases are also making an impact in the industry and, subsequently, sports organizations should take note—sports have often been used to shape societal values or unify national identity. Women’s sports teams and leagues have grown out of the shadow of men’s sports leagues by offering their players’ Name and Image Likeness (NIL) to a plethora of important causes. Organizations should consider how to best engage and include different types of audiences and communities in operational models of engagement. 

The media-centric business model is changing to an engagement-centric business model. Here are seven main takeaways as the industry shifts to a focus on engagement.