Sports: And it's Place in the Evolution of Nation States
Sports: And it's Place in the Evolution of Nation States
From war to the Olympics to using sports as soft power ─ we explore the unique dynamics athletics brings to the world.
As countries develop, they typically prioritize several key sectors.
And usually in this order as well:
Military Capabilities ─ to ensure national security and establish sovereignty.
International Relations ─ to build diplomatic ties, trade partnerships, and secure their place in the global order.
Education & Welfare ─ to cultivate a skilled workforce that can propel economic growth and ensure a healthy/productive population while reducing poverty.
Technology & Industrialization ─ once stability is achieved focus shifts to developing the infrastructure that drives economic growth, innovation, and modernization.
Sports/Entertainment ─ once the foundational sectors are established, athletics are put to work to unite the nation, enhance global visibility, and contribute to economic and social development.
Sports symbolize national pride and a tool for soft power, allowing countries to showcase their progress and compete on the world stage beyond traditional avenues.
Let’s Dive In 👇
Doubling Down on Sports
A month ago, several sports leaders and world powers pledged $10 billion to promote sustainable development goals in sports…
Key organizations made significant commitments:
IOC: President Thomas Bach announced a 10% increase in the Olympic Solidarity budget, totaling $650 million for 2025-2028, supporting global athletes and sports development programs.
LA28: Chairperson Casey Wasserman confirmed a $160 million investment in youth sports in Los Angeles parks.
FIFA: President Gianni Infantino pledged to install 1,000 sustainable football pitches in schools.
NBA: Deputy Commissioner Mark Tatum announced plans to build 1,000 basketball courts in Africa over the next decade in collaboration with the French Development Agency (AFD).
The more attention federations & governments put toward sports…the greater the opportunity for all of us.
“Sports used to ‘come after the rest,’ but now we aim to integrate sport into the development fabric,” - Rémy Rioux, Director General of AFD
To me…
This is part of a larger trend—the safer the world gets (it is still far from that), the more we see sports as competitive battles between nations instead of wars and political showdowns.
Let’s go a layer deeper…
Developmental Stages of Sports in a Country
There is a blueprint for everything…
As we explored above, nations develop in a certain way — but so do sports.
Here’s the typical order with relevant examples:
1. Focus on Popular National Sports
In the early stages, countries often focus on promoting sports with historical or cultural significance (a foundation for national identity & pride).
As international exposure increases, countries begin to adopt sports that are popular worldwide.
For example, India is a rising economic power, and this is evident when you look at its sports—it is just now starting to move from culturally significant ones (cricket and kabaddi) to worldwide popular ones like soccer and basketball.
To me…
The level of developed sports in a nation-state shows where a country is in the evolution of economic growth.
2. Establishment of Governing Bodies and Institutions
To formalize the development and regulation of sports…
Countries establish national sports federations or associations for various sports disciplines.
Governments may create dedicated sports ministries or departments to oversee sports policies, funding, and development programs at the national level.
We’re seeing this right now with pickleball—as nations pick it up, governing bodies are being established, and governments are deciding what to do with public land.
3. Investment in Infrastructure and Facilities
The initial investment often goes into building essential sports facilities, such as stadiums, training centers, and community sports complexes.
These facilities serve both elite athletes and the general public, promoting widespread participation.
With infrastructure in place, countries begin hosting local and regional sports competitions, which helps build a competitive sports culture and identify emerging talent.
Australia’s government collaborates closely with the private sports sector and has been a unique case study.
The Australian Sports Commission (ASC) plays a central role in coordinating sports development at all levels, from grassroots to elite — and the robust sports economy contributes significantly to the country’s GDP.
4. Talent Identification and Development Programs
Countries implement grassroots sports programs to identify and nurture young talent.
These programs often involve schools, local clubs, and community organizations, providing potential athletes with early exposure and training.
For identified talent, specialized training centers and academies are established to provide advanced coaching, aiming to develop athletes who can compete at the highest levels.
China has extensive government support and a sports school system for elite athletes— this has resulted in China becoming a dominant force in the Olympics.
Whether you agree with it or not, the best athletes are “drafted” by the Chinese state to compete and represent their country (they don’t always get to pick their preferred sport of choice either).
The government’s “Healthy China 2030” initiative aims to make sports a key component of national health policy, further highlighting the importance of sports development.
5. Participating and Hosting International Competitions
As the sports ecosystem matures, countries start participating in regional and continental competitions — these boost national pride and help build experience for athletes.
Eventually, countries set their sights on competing in global events.
Success at this level requires not just talent but also strategic planning and substantial investment in athlete preparation.
A significant milestone in sports development is the ability to host major international sports events — countries invest heavily in infrastructure, logistics, and marketing to win bids for these global events.
Broadly speaking, the Arabian peninsula is putting a lot of effort here.
Qatar spent over $200 billion for the 2022 FIFA World Cup as it looks to diversify its economy and promote tourism.
Countries develop long-term plans to ensure that the investments made for hosting events continue to benefit the sports sector and broader society.
6. Expansion into Culture & Commercialization
Over time, sports become deeply integrated with national identity, often symbolizing the country’s progress and unity.
National teams and athletes are celebrated, and their successes are seen as national achievements.
Countries increasingly use sports as a tool in diplomacy, leveraging their sports successes and events to enhance their global standing and influence.
As the sports sector matures, countries develop professional sports leagues and franchises.
These leagues attract domestic and international investment, media rights deals, and sponsorships — all contributing to the country’s economy.
Countries also capitalize on sports tourism and event management, turning major sports events into significant economic drivers by attracting international tourists and promoting the country’s global brand.
It feels like the entire world is going through this phase at some level, with every country adding new sports and attracting international investment.
Olympics and Military Power
Whether you agree with my thesis above or not…
The Olympics shows the strong correlation between where a country is economically and the overall athletic success…
I’m excited to see what the sporting landscape looks like once we hit LA 2028.
Where emerging sports leagues stand
NIL drastically impacting college athletics
AI transforming the automation around sports
Pickleball, padel, soccer, and cricket across the US
A significant decade ahead of us.
The Bottom Line
Sports are going through an amazing growth period!
Macro-environments are positively impacting and helping push forward the industry.
It’s great to see governments, companies, and those adjacent to sports push their chips in…
This is going to create a "roaring 20’s” in the industry. Now is a great time to build in sports! 🏟️ 🌍 📈
Podcasts 🎙
Awesome guests this past week:
Trey Bowles - Managing Director, Techstars (listen here)
A masterclass in accelerators, early-stage investing, and key insights on what they’re looking for (and even questions they ask).
Adam Azor - EVP Global Marketing, Sportradar (listen here)
One of the most knowledgeable conversations we’ve had covering 1st party data, which is a massive development you should be aware of (will impact a lot in sports).
Both Trey and Adam spoke to the Profluence+ Community. You’ll hear the questions at the end (we usually clip these out for non-members), but we wanted to give you a taste of what members get.
Unparalleled insights to learn from and the ability to network with game-changers in the industry!
Appreciate you reading today!
Fun times ahead for the sports industry — look forward to building together!
Peace,
Andrew 👋