The COVID-19 Pandemic: A Game-Changer for Sports Property

 

by: Violeta Pons and Maria Nicolau | @marianicolau @violetapons

The COVID-19 pandemic

Sports ticketing will look different as teams get creative without fans

The COVID-19 pandemic, a global health crisis that brought the world to a standstill, had a profound impact on various industries. It became a global public health crisis in December 2019 . Based on Alam and Abdurraheem (2021), before the pandemic (in 2018), the global sports sector’s value was estimated to be USD 471 billion (an increase of 45% since 2011). Additionally, millions of people around the globe are employed in the sports industry, which supports its economic relevance.The event cancellation/contingency insurance market suffered enormous losses as a result of major sporting events around the globe being canceled due to the worldwide impact of COVID-19. The total insured losses were estimated to be between $5 billion and $10 billion.

The pandemic had a destructive impact on sports competitions and the training process in both amateur and professional leagues all over the world. The impact of the pandemic on sports was likely to outlast the pandemic and the financial and legal repercussions of COVID-19 in sports were astounding. 

Measures applied in relation to COVID-19 prevented people from participating in sports activities and social interactions in sports to avoid the risk of the virus spreading. It became more challenging for sports coaches and managers to maintain motivation and the mental, and physical fitness of their athletes so that they would be ready for competitions after the end of the COVID-19 restrictions. Due to the pandemic, athletes had to practice and train alone. Athletes’ mood, personalities, and resilience capacity played a crucial role in determining the magnitude of the overall impact. This revealed the lack of preparedness of administrators and policymakers for crisis management and the lack of mental preparation of athletes, coaches, and support staff themselves. Recommendations for sports administrators include creating thriving mental health via mental skills and regular, structured, and comprehensive training.

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                This is how coronavirus is affecting sports | World Economic Forum

Losses were inevitable. Projected earnings were be nullified, revenues were plummet, there was less impact to the sponsors’ business, less tourist flow, ultimately a heavy recession for all those involved with sport.

THE OLYMPIC GAMES

The 2020 Summer Olympics and Paralympics were scheduled to take place in Tokyo, starting 24 July and 25 August, respectively. Although the Japanese government had taken extra precautions to help minimize the outbreak's impact in the country,qualifying events were being canceled or postponed almost daily. According to Japanese public broadcaster NHK, Tokyo 2020 organizing-committee chief executive Toshiro Muto voiced concerns on 5 February, that COVID-19 might throw cold water on the momentum toward the Games. The games have been finally celebrated this 2024.

COVID-19 brought about physical, nutritional, and psychological effects that may impact athletes' ability to return to sports safely and improve their overall health. As a result of missed opportunities and uncertainty about their finances and future, athletes and the sports businesses could suffer severe consequences. 

REFERENCES

1. Varmus, Michal, et al. “The Impact of the COVID-19 Pandemic and Related Measures on the Sports Industry in Slovakia.” Economies, vol. 12, no. 8, 12 Aug. 2024, p. 204, www.mdpi.com/2227-7099/12/8/204, https://doi.org/10.3390/economies12080204. Accessed 16 Nov. 2024.

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