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The upcoming tariffs may significantly impact professional sports leagues and the wider sports industry. Traditionally resilient to political shifts, the sports sector is now facing challenges similar to those of automakers and beverage producers due to President Trump’s tariffs.
“All professional sports leagues and sports entities should closely monitor the effects of tariffs on their operations. Historically, sports leagues and franchises have been stable investments with consistent revenue streams, but ultimately, they are still affected by global economic conditions,” explained Sports Report host Joe Pompliano during the podcast (see video above or listen below).
The U.S. has placed a 25% tariff on steel and aluminum imports and several products from Canada and Mexico, in addition to a 20% tariff on imports from China. President Trump has also hinted at other tariff measures, including a significant reciprocal tariff that is expected to be enforced on April 2.
Pompliano detailed the repercussions of these tariffs on various sports sectors, particularly emphasizing golf’s vulnerability.
“Golf equipment manufacturer Topgolf Callaway Brands, which sources some components from China, is anticipating a $5 million hit to its EBITDA this year,” Pompliano noted as a case in point. “Furthermore, Amer Sports, which owns Wilson Sporting Goods, derives 11% of its revenue from products such as balls and rackets made in China. Thus, tariffs on Chinese products correspond to $112 million of the company’s $5.1 billion in sales.”
While these impacts on sales may seem relatively minor, they represent an unexpected setback for an industry and sport that Trump values greatly.
To date, Topgolf Callaway’s stock (MODG) has declined by 12%, while Amer (AS) stock has fallen by 3%.
Fans attending live sports events may also encounter higher prices at concession stands, further compounding the already rising costs many face.
“In February, stadiums reported that tariffs on supplies from Canada, Mexico, and China would affect roughly $56 million in total sales, which represents about three-tenths of 1%,” Pompliano mentioned.
Read more: What Trump’s tariffs mean for the economy and your wallet
Although a significant portion of Trump’s tariffs on Canada has been postponed, if they are implemented, hockey fans may see some consequences.
“Canadian teams generate 25% of the league’s revenue, and if Canadian tariffs diminish the value of the Canadian dollar relative to the U.S. dollar, the Canadian-based businesses within the league could experience difficulties,” Pompliano added, highlighting that all NHL players are compensated in U.S. dollars. “This implies that a weakened Canadian dollar may have considerable implications for the league’s agreements with Canadian partners.”
