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Market Size of Fantasy Leagues
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Market Size of Fantasy Leagues

Date Published: 4th October 2020
Is there anyone in the world who doesn't love the thought of his fantasy becoming a reality? Well, that is exactly what fantasy leagues all over the world are all about. Die hard fans of various sport leagues have common fantasies. They hope to put together a set of players on a team, with their own name and having that team conquer the world. The world in this context means every other team that is involved in that league competition. We all know that's not possible, but what if it could be made possible?

Market Size of Fantasy Leagues

The year 1962 was when the first official fantasy league game was held. Ever since, the fantasy leagues have spread their increasingly growing influence into different parts of the world. The result of this is more people wanting to participate in the league and more money being realized by these companies. It has been reported as one of the fastest growing industries in the last 10 years and it doesn't look like slowing down. More companies are coming up with fantasy leagues for different sports that have aroused the interest of many, both male and female. Everybody will do anything to make their fantasies come true, won't you?.

It doesn't end there though, like what happens after your team has conquered the world? You just don't sit there and bask in the joy of your victory, you also get rewarded. Rewards include cash, respect, more cash and pride as everyone envies you and wants to take your position. This means you have to defend your title and crown and start all over again. But then, who wouldn't want a shot at the glory, money and respect that comes with 'conquering the world'? This is one of the main causes in the increase of the market size of fantasy leagues.

The year 1962 was when the

As long as people keep having fantasies, the market will continue to grow from strength to strength. The way they work is that for everyone who wants to participate, a subscription fee is usually charged. This amount varies from country to country, but it is usually very affordable as 90% of the population can pay it. After the subscription, which might some times be weekly or monthly, participants are allowed to select players that will make up their dream team. A limit is placed on this by giving all players the same amount of virtual money to assemble their team. Different players, named after the real life ones are made available to each participant at different prices, depending on how good the player is.

The way it works is that before a particular week of matches to be played, each participant would have assembled their virtual team comprising of real life players. Their performances in the real life match will determine the points they get on the virtual team they are assembled in. At the end of the week, the team with the highest point wins and is usually rewarded in cash and respect. The amount of money won at the end of the week might be $1500 for first place, $1200 and $1000 for second and third place respectively (if it's a big fantasy league company). So let's say for every person who participates, he/she must pay a $20. If 1000 people subscribe for that week, the company has gained over $17000 in profit in just one week.

It doesn't end there though, like

That's over $68000 in a month and about $816000 after a year. If you remove company expenses and taxes, you might have more than $500000 profit from one company every year. That's for a company with one stream of income and such a company doesn't exist! Sponsorships, advertisements and many other ways of increasing income has led to the fantasy league industry hit about $7 billion in revenues, according to Wikipedia. Those who play are estimated to be about 59 million and still counting. What's more, the market is big enough to accommodate more people so far you have a unique selling point.

There has to be a demand for a supply to be created and as long as you keep fantasising and paying to have this fantasy realized, the fantasy league market will keep growing. In 5 years from now, it could have well surpassed the $10 billion mark, if not more.
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