The Los Angeles Dodgers exhilarated its fans by winning one of the sports world’s rarest honors – back-to-back World Series titles.
But the L.A. sports market has been on a roll in recent years, according to a report from downtown-based Los Angeles County Economic Development Corp. and El Segundo-based trade group Los Angeles Sports Council.
The 2025 Economic Impact Study on sports showed that the L.A. sports market generated $12.1 billion in economic activity last year, a 3.4 % increase from $11.7 billion in 2023. Since its inaugural report released in 2019, the sector produced $6.2 billion in 2018 economic output, a 95% surge over the seven-year period.
Stephen Cheung, president and chief executive officer of LAEDC, credited the growth to the winning success of the 12 professional sports teams competing in Los Angeles and Orange counties, as well as the big college sports programs at University of Southern California and University of California, Los Angeles.
In the coming years, the region’s sports economy will shift into high gear as marquee sporting events kick off in the city. That includes the 2026 FIFA World Cup, the NFL’s Super Bowl LXI in 2027 and the 2028 Olympic and Paralympic Games—all of which Cheung expects to inject hundreds of millions of dollars into L.A.
In an interview with the Los Angeles Business Journal, Cheung talked about how Los Angeles’ sports juggernaut developed and how to make sure the region stays on top.
How will the Dodgers’ 2025 World Series championship affect the wider Los Angeles sports economy?
Whenever there’s a World Series – especially if we win – it creates ripple effects for local businesses, particularly retail and those producing team merchandise. The boost can last for a while, but it’s not something that sustains indefinitely. So, in many ways, it acts as a short-term economic stimulus.
So it’s really just a one-off. You have this great championship, you have a great party and then it’s on to the new season.
Exactly – it’s on to the next season until we win again. But what’s unique about Los Angeles is that we have so many professional sports teams that actually do win. The Lakers, the Kings with their Stanley Cups in 2012 and 2014, LAFC winning in 2022, and of course the Dodgers. For most cities, a championship is a once-in-a-lifetime experience. In Los Angeles, it feels like it happens every couple of years.
There’s been a lot of growth in Los Angeles’ sports economy since 2019. The inaugural sports impact report in 2019 found the region’s sports economy supported 39,000 jobs. By 2024, that number doubled, and so did overall economic output. What accounts for this growth?
There are a number of factors at play – many fans already know of the “Ohtani effect.” And now after this World Series, we’re going to see the “Yamamoto effect.” These superstar players attract huge excitement, which drives ticket sales, merchandise and overall fan engagement. We’ve seen similar things happen with Kobe and LeBron – when people feel that kind of energy, they want to be part of it.
A great example is Angel City Football Club. Their deep community engagement has created a really loyal fan base. People show up no matter how the team is performing. That consistent connection keeps participation and attendance strong year after year.
On top of that, international stars like Ohtani and Yamamoto bring global attention. Teams are also engaging fans through special interest groups, like LAFC’s 3252 Club that fills a big section of BMO Stadium every game. You also see special nights like LGBTQ+ Pride Nights or “Bring Your Dog to Dodger Stadium.” When fans feel seen, heard and supported, engagement grows – not just with general fans but across different subcommunities within the broader fan base.
Is the growth in our sports economy fueled by developing more sports teams?
Not necessarily just more teams – it’s also about how we define “sports.” Take esports, for example. It’s not always thought of as part of the traditional sports economy, but it’s literally in the name: esports. It’s (a) fast-growing sector with huge audiences. And right before (Covid-19), the NFL started allowing teams to market to international audiences. The Rams, for example, began building connections in Mexico, Australia and China to expand their global reach. That kind of outreach brings in new revenue streams from international fans.
Even if you look at the Lakers or Clippers, you’ll see ads from Chinese brands that don’t even operate in the U.S. – they’re advertising just because of the global fan base. I once asked a Chinese colleague why, and he said, “Do you know how many people in China watch the Lakers because of Kobe?” That global connection is a massive driver of growth and a massive media market to tap into.
What are the untapped revenue streams in the L.A. sports economy?
There are a few. Professional teams are obviously a big part, but minor leagues and emerging sports are becoming more influential. Pickleball leagues are taking off. Cricket and rugby are coming to Los Angeles. These bring in new players, fans and spectators – all contributing to economic activity.
And once the Olympics and FIFA World Cup arrive, you’ll see even more interest. When international organizers see the world-class venues and fan base here, they’ll want to host more events in L.A. That creates long-term opportunities far beyond the big tournaments themselves.
You mentioned the 2026 FIFA World Cup and the 2028 Olympic and Paralympic Games, and might I add that we also have the NFL Super Bowl LXI in 2027. What’re your expectations for those events and their impact on the economy?’
Back in 2022, when Los Angeles hosted Super Bowl LVI, the Los Angeles Sports and Entertainment Commission (LASEC) estimated the game pumped somewhere between $234 million and $477 million into our economy and created 2,200 to 4,700 jobs across the region. Pretty impressive, right? For context, the U.S. Chamber of Commerce says last year’s Super Bowl in Las Vegas generated about $1 billion for their local economy. So, when the Super Bowl comes back to L.A., we could easily be looking at $500 million to $1 billion in impact.
And that’s just the Super Bowl. LASEC also projected that the FIFA World Cup …will be a historic 39-day tournament coming to L.A. County (and) will generate $594 million in economic impact. Think about it—180,000 out-of-town visitors during that window will drive a quarter of a billion dollars in increased wages for workers across Southern California, from hotels and restaurants to entertainment and retail.
Now, here’s the big picture: the (2028) Olympic and Paralympic Games are like hosting seven Super Bowls every single day—for weeks. We’re talking about 15 million visitors and more than 15,000 athletes from around the globe. Even using a conservative estimate from a 2017 study, the Games could bring in roughly $18 billion in economic impact for California.
What are the jobs being offered?
Most people think of stadium jobs – ushers, concession workers, catering – but the sports economy is much broader than that. You’ve got event management, marketing, fan engagement, international relations and corporate partnerships – people who manage suites, season ticket holders and activation events. Then there’s team management and entrepreneurship around sports-adjacent industries. You also have all the supporting roles: crowd control, transportation, logistics – everything that makes the fan experience possible.
On the tech side, there’s growing demand for cybersecurity, app development for mobile ticketing and AI-driven data analytics for crowd management. That’s a big part of where the industry is heading. And in Los Angeles, sustainability is a huge focus. So, jobs around recycling, emissions tracking and environmental compliance at sporting events are also growing fast.
What challenges face the sports industry?
One major challenge is fan fatigue. If teams stop winning or the excitement fades, attendance drops. When fans lose enthusiasm, that can ripple across the whole industry. We’ve seen it happen in other cities. The good news is, Los Angeles is big enough to absorb some of that – our market spans five counties and nearly 19 million people. That’s a massive fan base that keeps things going. Smaller markets don’t have that cushion – they’re more vulnerable to oversaturation.
The sports economy is closely tied to the overall economy. It’s a luxury sector – when people are struggling financially, sports and entertainment are often the first things they cut. So economic downturns, inflation or job losses can directly affect attendance and spending.Like tourism, this industry depends on people having disposable income. Safety concerns are another factor – look at what happened during (the Covid-19 pandemic). People became hesitant to gather in large spaces, and that hit the entire sports ecosystem hard. So, while the sector is resilient, it’s still sensitive to broader economic and social trends.
