COVID-19 or Novel Coronavirus is the newest buzzword to the entire world. Starting from Medical institutions and research centers to the leading media houses they are all are pretty much concerned about this powerful virus. And why not, it proves the failures of technology and medical sciences so far to combat its rapid global transmission leaving to a standstill Earth.

By killing thousands of people and plunging global economy in its verge it has significantly affected every industry be it entertainment, education, finance or sports. To understand the effects of this pandemic in sports industry, you must know the basic model of the industry.

Business model of sports industry

When we talk about sports, what are the things that come first to your mind? Of course, the tournaments and multi-sport events which are held all over the world. Sports industry possesses a large contribution in the global economy although its aim is to give a chance to the booming sportspersons in varied fields.

Basically the decorum of the industry is categorized into three: broadcasting (media rights sales), commercial (advertising partnerships and sponsorship) and the tournament day revenue (hospitality and ticketing). 

These are all referred to as the sources of income of this industry. Keeping aside the professional sports league, major events earn more money from broadcasting and receiving much attention and eyeballs. Actually, value is completely based on the eyeballs and the intensity of entertaining to people.

Even as per Statista, it is expected that the value of entire sports industry will reach $60bn by the end of 2020. But this global pandemic has affected every chain of it ranging from leagues, teams, athletes to broadcasting severely.

Covid-19 effects on the sports industry

In this section, we will discuss about how sports industry has been affected by this virus in precise manner. Also, you can come to know about its indirect impact over the global economy as well. So, let’s have a look.

• Postponing of the major sports events

It is not necessary to mention that a number of sports events take place all over the world throughout the year. But 2020 becomes indifferent from others leaving a standstill and poor (literally) Earth. It creates force majeure and makes us to stay at home and far from others and outside world.

Every tournament, league and sport event irrespective of minor or major which is going to start from the beginning of this year has been postponed leading to huge loss in revenue.

Indian Premier League T20 tournament, Tokyo Olympics 2020 and Asian World Cup are name to a few of them.  But as per sources, IPL is going to start from September 19 and Tokyo Olympics will take place next year with new precautions and safety measures.

• Shifting of the venue and time

As we are in the mid of this year, we try our best to get adapted with the present environment and setting back to our normal life again. But now things are quite different from that of previous lifestyle.

We have to be habituated with the new normal and follow the safety and precautionary measures. By this way we can stay safe and get back into track soon. Similarly, every industry is trying to do the same resulting in re-planning to organize sports events again.

This time, the venue and time zone will be different. For instance, Indian Premier League T20 tournament has shifted its venue to Dubai leaving a great impact on the number of spectaculars on the ground. This will surely create an effect on the broadcasting, ticketing and hospitality revenue. Even you can’t cheer for your favorite team this time by being there physically in the ground.   

• Following safety measures and empty gallery

Although sportspersons and film celebrities are meant to entertain us, yet they have to be concerned about their health firstly in this tough time. So, COVID- 19 teach us to wash our hands frequently, putting on the masks and most importantly maintain social distancing. Well, can you ever think of an empty gallery during an important tournament or match?

Actually no, we are not used to it. But this time, things will be different by keeping the norms of social distancing. No more crowds can be seen in the gallery to wave the flags for their country and cheering for their favorite sportsperson by holding placards in their hand-rise.

This will not only impact the revenue of tickets but also our way of enjoying the games. Thanks to Internet, Smartphone and TV that we can cheer for our country from faraway while sitting safe at the comfort of our homes.

• New regulations in games and sports

Over the time, certain changes have been made in the rules and regulations of playing a sport or game. You can refer it as technological or beneficial to make the game simpler. For the sake of the health of the sportspersons and the management committee, new rules have been evolved in varied sports to resist the chain of transmission amongst themselves.

Even the team-mates are advised to maintain social distancing. Their body temperature will be checked frequently with additional use of sanitizer, surface disinfectant and lots more. This surely has increased the budget for organizing a sports event to some extent. Moreover, this time the team has to think of other ways to discuss about their gaming strategy against the opponent rather being crowded.

Well, by this way the entire sports industry is affected by the COVID- 19 pandemic. Its result can be seen in the global economy and revenue. But things are getting normal progressively! All we have to do is to stay positive and at home, keep patience and get habituated to the new normal. Soon, together we can combat against this perilous virus affecting human lives and lifestyle.