Will the Sports Industry Rebound?
Covid-19 has swept the world by storm creating not only mass panic but leaving over half the world shut down. The sports industry was one of the many who have taken a massive hit in revenue, and profit. With stadium doors shut, leagues closed, and nothing but reruns left to watch the sports industry is in a position of great loss.
While many people may think that the sports industry makes its money off attendees this is in fact not the case, and about 75% of revenue brought in is from television deals made with companies such as ESPN. With no games being played and leagues shut down completely it has rendered many of these deals null and void. This monetary effect has not only affected the leagues however and has gone as far as to hit any sports related shop. From clothing store to broadcasting stations this lose of gameplay has resulted in many businesses struggling to stay afloat.
This video by Cover Video shows the estimated cost to the sports industry, as well as how much worse it could get if Covid-19 ramps back up again this fall. While many of the leading sports leagues are implementing new ways to protect players and fans; this may not be enough should the breakout continue as it is now. Cases have risen drastically over the last few weeks due to nonessential businesses opening back up. If this breakout is not contained it will result in more revenue and job losses for the leagues and their employees.
Getting the sports industry back on its feet will need to be a slow and calculated process, however if done right it will yield great success. Morgan Lewis from JDSupra states “Resuming live sports on a global basis will have an extensive ripple effect on the rest of the industry, reinvigorating businesses in all areas of the sports world, including broadcasting and media, sports betting, sports advertising, merchandise and apparel, and travel and hospitality, among many others. All organizations across the sports industry therefore have a vested interest in supporting the resumption of live sports.” Off the bat fans may not be able to attend games physically, however even just having games on TV or the internet will give fans enjoyment and a sense of normality that seems to have been gone to long.
Other concerns that arise are things such as where to pick back up at within the leagues. There is much debate as to whether the sports leagues should start the new season, or simply pick back up where they left off. These choices are never easy for the league officials, and it will probably still be a while before we find out what exactly is going to happen. Within these choices there are many other things one must consider. Player compensation is one of the larger ones as many players are payed based off performance as well as meeting certain criteria. Cutting the season short can lead to monetary loss for the players leaving many frustrated and out of a certain amount of salary.
During this time we must all stay aware but hopeful. The sports industry must prepare for both the best and worst options as well as be prepared to be adaptable. The future is ever changing, and until we get there the sports industry must do its best to resume its business in the safest manner possible.