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How the ‘Fastest Two Minutes in Sports’ Boosts America's Economy

How the ‘Fastest Two Minutes in Sports’ Boosts America's Economy

May 01, 2025

^{May 01, 2025 | Edition #12}

Hey there!
2 minutes. 20 horses. And a $3.1M paycheck. The Kentucky Derby week is upon us, and as the oldest sporting event in the U.S., it continues to evolve, growing larger each year with an economic footprint that matches its iconic legacy. In today’s edition, we will talk about the financial muscle of the Kentucky Derby. We will also touch on another news from Louisville–the athletics department of the University of Kentucky is going LLC. If that made you scream ‘What!’, you should stick till the end.

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Today’s TLDR:

🏇 Kentucky Derby: A Cultural Phenomenon Boosting Local Economy

🌟 In-House Agency: The Future of NIL-era Athletics Programs?

📖 The stories shaping the industry (and the lessons we learned this week)

Let’s dive in. 🚀

EssentiallySports’ Kentucky Derby articles last year saw over 76 seconds spent per visit, putting it on par with top sports in terms of reader engagement, highlighting its cultural relevance.

The Kentucky Derby is the longest-running sports event in the United States. Started in 1871, it has become a cultural phenomenon. But beyond that, it is an economic powerhouse for the state of Kentucky.

Consider this: last year’s race pumped an estimated $434M into the local economy. Comparably, Super Bowl LIX brought $500M to the New Orleans economy. Not a staggering difference despite the Super Bowl being… well, the ‘Super Bowl’. And a key driver of the Kentucky Derby’s giant economic footprint comes from, yes, you guessed it right, betting.

Bettors Play Big at Churchill Downs

The Kentucky Derby is a major day in the sports betting calendar, drawing the eyeballs of both domestic and international bettors. Take a look at these numbers:

The first leg of the Triple Crown saw $320.5M placed in wagers, a significant increase from $288.7M in 2023.
Bettors spent $210.7M in money bet, up from $188.7 million in 2023.
For the entire week, $446M was placed in bets, $34M more than in 2023.

None of that should surprise you.

Famous bettor, Jim "Mattress Mack" McIngvale, alone spends around $1-$3M every year on Kentucky Derby wagers. And the charm of ‘Fastest Two Minutes on Sports’ has dug into the imagination (and the pockets) of International bettors. Last year, $10M worth of bets came from Japan, comprising 4.8% of the total wagers.

While the figure is still dwarfed by the Super Bowl’s numbers ($1.39B wagered), it’s still significant considering the race barely lasts for 120 seconds. Compared to other races, however, the Kentucky Derby’s popularity is clearly visible:

The Kentucky Derby transcends the boundaries of a niche sport like horse racing. But betting represents only one part of the races’ multiple revenue streams. Let’s not forget the hospitality, ticketing, and apparel.

Ticket Revenue and Luxury Audience: A Premium Experience

A chunk of the Kentucky Derby’s revenue comes from live attendees. The ticket price varies from $130 general admission price to $2,595 premium Homestretch Club Reserved Seats. The event attracts a high-income demographic, who are ready to lavish money on premium areas, on apparel, and on exclusive parties.

Kentucky Derby-themed hats range from $400 to $1000, and they still see a massive surge in demand, with workers reportedly spending 20-22 hours a day to meet the demands.
54% of fans plan to spend $100-$200 on merchandise alone during Kentucky Derby week.
An estimated $10 million is spent on fashion (hats, dresses, accessories) in Louisville during Derby weekend.

The impact is felt far beyond the racing track. Its ripple effects are evident in the local economy and the national economy as well. During the Derby weekend, hotels are booked well in advance. According to a report on WLKY, hotel occupancy is expected to be 87% this year. Vincenzo's, a popular restaurant, is fully booked for the week.

Overall, the Kentucky Derby is a slam dunk for the Louisville economy:

💰 The Kentucky Derby generated an estimated $440 million in local economic activity from tourism-related spending.

💲 A study found that the Derby generates $47 million in local, state, and federal tax revenue.

🛍️ As per the same study, $94 million was spent on accommodations, food, and merchandise in 2023.

The Kentucky Derby’s impact stretches far beyond the racetrack, contributing significantly to both the local economy and U.S. sports culture. Its scale and prestige place it on a par with other iconic sports events like the Super Bowl and The Masters, solidifying its status as a true cultural milestone in the American sports landscape—one that captivates nearly everyone.

As for our pick? The mighty Journalism (trained by Michael McCarthy). Let's be honest, can you see any other horse taking the crown at Churchill Downs? We certainly can't.

Will You Be Tuning in to Kentucky Derby This Saturday?

The NIL era has transformed college sports. In this fast-moving landscape, programs either go big or get left behind. And for top recruits, it’s not just about facilities or coaching anymore. NIL opportunities are now a critical factor in college decisions.

Athletes have a new benchmark

Since the NIL era began, schools have scrambled to deliver value to star athletes, many of whom are fast becoming micro-influencers. That’s a concern even for the recruits as well. A survey by On3 reveals:

📝 NIL deals are one of seven key commitment factors.

📉 Only 30% will choose a school even without a great NIL deal.

👥 64.7% discussed NIL with peers; 38.2% compared offers.

Student athletes know their value. Indeed, college sports have exploded in recent years, drawing more eyeballs than ever before, as our internal data from EssentiallySports also evinces:

Athletes still value coaching and academics, but they're now eyeing alumni networks, personal brand potential, and broader engagement opportunities. That’s forcing schools to adapt.

The dawn of a new era within a new one

College programs need to position themselves as the top destination for NIL deals. It’s not an option anymore. To pick the best recruits, it’s a necessity. For that, schools need expertise. Enter sports agencies into the picture:

The University of Georgia has built an in-house NIL agency partnering with Altius Sports.
The University of South Carolina launched ‘Park Ave’ with Everett Sports.
The University of Michigan paid Altius $250K+ to manage NIL operations.

But why an in-house team? It helps the programs in multiple ways that third-party agencies can’t serve:

✅ It offers college programs to exert more control over the process: supervising how those deals are negotiated and marketed.

✅ It allows them to build a deeper bond with athletes, helping in retention in the volatile times of the transfer portal–the NCAA’s system allowing athletes to transfer schools more freely

✅ With more control, the college programs can capitalize on revenue opportunities arising from NIL deals.

College sports have become a billion-dollar battlefield, and schools are building in-house NIL agencies to stay in the fight. This is about power, profit, and survival. Universities are acting like talent agencies and media companies, controlling the narrative, the deals, and the data before outside forces do. NIL is now the frontline of recruiting, and programs without in-house brand building, deal flow, and production support are falling behind. It’s not just about helping athletes—it’s about monetizing their spotlight and keeping the value in-house where it belongs.

— Trey Holder, ES Think Tank Podcast Host

Indeed, recognizing this shift in approach, the NCAA is planning to offer colleges a more direct role in securing NIL deals for athletes. According to a Yahoo Sports report, the NCAA’s NIL division has proposed that schools can now provide ‘assistance and services’ to their athletes. Then the news out of Kentucky signals a radical new shift.

Kentucky’s Big Leap

In a landmark move, the University of Kentucky’s Board of Trustees approved turning its athletics department into an LLC—Champions Blue. It’s a first-of-its-kind for any NCAA program. The benefits?Access to new revenue streams, including private partnerships and real estate.

A more agile, for-profit model in a space long dominated by public structures.
A bold bet, as projected athletics expenses hit $247M.

So, the arms race is on. From hiring general managers to building internal NIL shops, college programs are mimicking the front offices of pro teams. Kentucky’s model could be the first of many, as others face pressure to rethink structure and sustainability in a post-NIL world.

Nelly Korda, Rose Zhang, and the young crop of stars are keeping women’s golf thriving. In 2024, 7.9 million women and girls played on-course golf—a record high—while 43% of off-course golfers were female. Junior participation has surged, with girls making up 35% of junior golfers, 28% of whom are minorities. The LPGA has doubled its major prize purse from $23.4M in 2021 to $47.8M in 2024, and its YouTube views hit 55 million. A 2023 Nielsen study found brand favorability is 19% higher among women’s sports viewers, and 38% of fans are more likely to buy from supporting brands. Women’s golf isn’t just a sport—it’s a statement, and its momentum is only accelerating.

The Professional Women’s Hockey League (PWHL) has rapidly attracted major brands like Barbie, Bauer, Gatorade, and Canadian Tire. With over 925,000 fans, 2.9M viewers on opening night, and YouTube views exceeding 40 million, the league has proven its commercial potential. Similarly, the NWSL continues to soar—Nike contributes $5M per year, Ally Financial adds $4M, and Amazon is on board too. Brands like Nike and Gatorade are betting on underrepresented fan segments, signaling a turning point in sports marketing. In 2025, smart sponsors aren’t just chasing numbers—they’re investing in connection and culture.

AI will revolutionize the World Cup experience. From hyper-personalized content to smarter stadium operations, its implications will be multifold. FIFA plans to analyze user behavior and engagement patterns to tailor content delivery, offer real-time stats, and create gamified fan interactions. A 2024 IBM survey revealed 63% of fans already use analytics during tournaments, and 50% believe AI will further elevate their experience. Beyond screens, AI will power AR overlays in-stadium and VR experiences at home, creating deeper connections. It will also optimize crowd flow and concessions, boosting both safety and revenue. The message is clear: AI is no longer optional—it's essential.