Corona-virus Wreaks Havoc
on the Sporting Industry
Patriot Sports Media
It is very safe to say that absolutely nobody saw this coming. As humans, we tend to plan so far ahead in life that when major rode blocks such as global pandemics wreak havoc on citizens and economies, everything seems to stop in its tracks. This holds true for the sporting industry. On March 11, the NBA suspended its season indefinitely. To a lot of people, it came as a shock as the now novel corona-virus had yet to begin rapidly spreading and taking American lives. However, the NBA set a precedent as in the following days other major sporting leagues such as the NCAA, MLB, NHL, and PGA began to suspended and ultimately postpone their seasons. From the outside perspective, the disappointment is palpable and real. But when you take a look at the analytics, the major leagues combined have lost over 1 billion in revenue and that number is continuing to climb.
It is important to understand that these losses do have trickle down effects. Let’s focus on the NFL. While watching a Business Insider video depicting how Miami’s Hard Rock Stadium used a culinary staff of over 3,000 people to feed everyone who attended Super Bowl LIV, you realize how massive of an operation it truly becomes. Preparation is made months in advance and thousands of people coordinate all for one day as these major companies outsource work in those cities. Although these mega billion-dollar companies may feel strain on their pockets, but the working-class citizens who serve you those game-day nachos will ultimately take the fall.
However, some leagues are taking a different approach. Similar to other leagues the UFC was forced to postpone fights in order to stay in regulation with the constantly changing regulations on corona virus. Dana White, the president of UFC, is dedicated to making the matches happen as he has allegedly secured a private island to showcase the matches. He states that “The UFC will be back up and running, internationally and here in the States." White goes on to say the decision is being made in order to satiate the people who are cooped up in their homes. His decision to continue on with the fights may also stem from the fact that the UFC made anywhere from $980 million to $1.1 billion and signed a very lucrative deal with ESPN in 2018. Using this loophole of a private island allows White to get out from under his parent company and continue to make the money he was aiming for this year.
Although the NFL season has yet to start, these scenarios are applying to the currently postponed MLB and NBA seasons. In the 2019 season, the NBA alone raked in on average almost 10 billion of dollars’ worth of revenue from ticket sales, television sponsorship’s, and merchandising. Without a game to play, tickets and ads during commercials and on banners throughout arenas will not be sold. As the internet and television are staples in the vast majority of homes throughout the nation, not having the ability to reach out to fans and viewers will ultimately cause a tremendous, yet recoverable, financial loss.