No one can deny that coronavirus is having a major moment right now. Having encapsulated the lives of around 4.5 million people across the globe, this virus doesn’t seem to slow down any sooner. Currently, this global health emergency has claimed thousands of lives and continues to put a full stop to the life circle of many more across the world.
Not to anyone’s surprise, COVID 19 has also caused much damage to the sports industry today. The professional leagues have already suffered at the hands of this virus and dates of impending matches have been postponed. You will be shocked to know, even the iconic summer Olympics has been postponed. Even if the pandemic ends close to July, there is no guarantee that this sports event will be held anytime this year.
Back in 2018, the net worth of the sports industry was valued at $471 billion, which was a 45% increase from 2011. Today, every part of the sports industry has got affected to a great extent. To begin with, the sports industry is broadly divided into 3 parts, income from broadcasting, sponsorships and the revenues collected on the days of matches. Now that everyone is indoor, there is no chance of the sports industry reaching a staggering net worth this year.
Especially when it comes to professional sports leagues, every company owns a different sports team. Each of these teams has channels covering them all the time. However, it is imperative for every team to have their own identity, fan bases and employees. Once a company owns a team, the next step is to schedule the programme.
With COVID 19 being all over the place, it is tough to say if we will be able to witness a sports match on television in the coming months ahead. When it comes to the income factor, most sports rely on broadcasting factors. This is because it has the power to generate maximum revenue for the sports industry.
Last year, it was predicted that around $50 billion came from the revenue generated by broadcasting matches live. The truth be told, every sport is monetized in a different method but the revenue is divided according to the number of leagues. Because several countries have decided to ban public gatherings for the next few weeks, even sports matches won’t be held anywhere around the globe.
Earlier, sports matches were a great refreshment for fanatic sports fans who would run competitions to spark people’s interest. For instance, if you search for a win a car competitions on the web, you will come across several competitions that were produced by sports enthusiasts.
Currently, COVID 19 has encapsulated the lives of more than 1 million people in the US alone, which is described as a hub of the global sports industry. Unless this pandemic doesn’t seem to slow down, nothing can be said about the promising future of the sports world. Currently, many investors have decided to hold back their investments because the world is not going to come out of their homes anytime soon.
Whatever is invested in the sports industry right now will be at a huge risk. Because it is imperative for sportsmen to come out and the lockdown hasn’t ended, nothing can be said about the current prospects of the sports world. Just before the lockdown, several leagues entered in an agreement with one another. Now, if this lockdown doesn’t end anytime soon, it is tough to say if these leagues will meet each other’s demands.