Image Source – The Guardian<\/p><\/div>\n
The Coronavirus pandemic has upended all walks of life. Social and physical distancing measures and lockdowns have disrupted almost all regular aspects of life, including sports. In fact, the COVID-19 pandemic has caused the most significant disruption to the sporting calendar since World War II. <\/span>Before the pandemic hit, the global value of the sports industry was estimated to be $471bn in 2018, heading steeply on an upwards trajectory. The <\/span>impact of coronavirus on sports <\/b>has not just been limited to the disruption of sporting events, but also on general physical activity for the sports-enthusiast. In this article, we cover how the Coronavirus has impacted the entire global sports ecosystem – from the relation between sports and global governance, to the young and spirited athletes at the forefront of it all.<\/span><\/p>\n <\/p>\n
Sports and Governance<\/b><\/h2>\n
The rescheduling of the Tokyo Olympics, the suspension of the NBA season, the postponement of the FIFA 2020 World Cup, and the virtualization of the Boston Marathon are just some of the major sports setbacks that made headlines. Disappointed fans and athletes aside, the coronavirus has also exposed some of the frailties of the existing economic structure in sports. <\/span><\/p>\n <\/p>\n
On the relationship between sports governing bodies and public authorities, the question of autonomy has always been a discussion on the table. Even the IOC champions more autonomy to sports governing bodies, albeit conservatively. However, 2020 pushed governments to take center stage, and sporting events were one of the first to get cancelled in the wake of the pandemic, giving public authorities more supervising powers over the economics of sports. <\/span><\/p>\n <\/p>\n
For example, La Liga had to agree to distribute part of their commercial income to other smaller sports, in order to obtain a favorable view from the government so that they could resume football competitions. In this case, while the impact of cancelling sporting events was economically significant for 2020, the safeguard of encouraging other sports also serves as a beacon of hope for the entire sports entertainment ecosystem to not just recover, but spring back stronger, once the pandemic ends. The relatively quick development and deployment of vaccines is a welcome sign for 2021.<\/span><\/p>\n <\/p>\n
Addressing the existing business model of sports<\/b><\/h2>\n
The main source of revenue for sports leagues are broadcasting, commercial sponsorships, advertising partnerships, and match day revenue (ticketing and hospitality). Professional sports leagues are analogous to entertainment companies. Even the corporate structures of entertainment companies and sports leagues are similar. As a matter of fact, The Sports School\u2019s BBA in Sports Management is structured for gaining a successful career in the vast sports industry. <\/span><\/p>\n <\/p>\n
When Covid overturned the sporting calendar, it was widely anticipated that sports organizing bodies would suffer a great fall, and the existing structure would be rebuilt. To a large extent, the fact remains true, especially for smaller bodies who are struggling to receive funding. With stakeholders diversifying the portfolios, sports organizing bodies have had to rely on national interests to keep the games going. <\/span><\/p>\n <\/p>\n
On a brighter note, there is much scope for reorganization across the globe. As of today, just 10 sports leagues account for 60% of the global value of sports media rights. With viewership increasingly going digital, forced virtualization has allowed sports organizers to explore more diverse income streams. There have been advances with immersive viewing to allow fans to enjoy the games live.<\/span><\/p>\n <\/p>\n