Sport (or, primarily in North America, sports) is all forms of competitive physical activity which, through casual or organised participation, aim to use, maintain or improve physical ability and provide entertainment to participants. Hundreds of sports exist, from those requiring only two participants, through to those with hundreds of simultaneous participants, either in teams or competing as individuals.
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Sports does not only keep you fit, it also teaches you to socialize as you can make friends with other team players. It is good for not just your physical health, but also your mental health. It beats sitting at home doing nothing. Really good sports people may turn professional and get paid for doing what they love. Some sports people become famous and as a result it helps them do well in other areas of their life. Through their fame they may do better in their regular career or help them to get better jobs or get into other areas of public life, like politics or as a representative for some cause.
Playing sports is very good for anyone at any age depending on medical conditions. Many sports like hockey or soccer get your heart rate up and they work your lungs. Another very good sport is swimming. Swimming is the only sport in the world proven by sports experiment scientists that works all of the muscles in the body to some degree. Swimming works your legs, arms, heart, lungs and it will strengthen your mentality.
It allows fat people to sit at home or in the stands and watch not-fat people do things that the fat people wish they could do.
Exceptions include Prince Fielder and the majority of Offensive Linemen.
On a more serious note, sports add a tremendous element to a society's economic stability. The annual sport-related revenue is in the hundreds of billions of dollars in the domestic US.
It also has cultural value. Most communities in the US have deeply rooted loyalty to the local team. Some teams even have a national following, like the New York Yankees and Boston Red Sox (and the Cincinnati Reds in my opinion).
Sports offer a competitive outlet as well as social opportunities. Many businessmen will tell you that they do my business on the golf course than in their office.
Sports benefits you because you can get really fit, lose body weight, gain muscles and get better at the sport you really like.