How does sport help the economy?
The sports sector contributes to the economy in many ways: by supporting employment and adding to the economic output due to commercial activities, by contributing towards increasing expected life span of the population, by facilitating better lifestyles that can also lead to increased income levels.
Any sport needs some basic infrastructure like a ground/sport complex, transportation facilities leading to area, electricity, coaching, instruments used, clothing, medical support, administrative setup, hierarchical system i.e. local, state, national, international etc. Building all this needs lot of resources and investment.
Further the telecasting a sport event involves lot of action. Here right from the ground to home TV everything contributes to GDP directly or indirectly. We all dropped jaws at the price of IPL broadcasting rights and advertising costs. People buy tickets in turn pay taxes. People from all over the world pour in our country boosting our tourism, hospitality industry.
All this activities involve lot of investment, people working, earning then in turn spending on buying stuff or saving. I.e. contributing to GDP.
Another thing involved in sports activities is people get off their mundane life and are rejuvenated. Their efficiency gets boosted, even if it maybe a temporary effect. Being associated with sports also keeps people healthy thus less holidays more work.