IMPACT OF COVID19 ON THE GLOBAL SPORTS INDUSTRY-

Our suggestions to IPL and UEFA

(CASE STUDY DRAFT 1)

As rightly said by Socrates - “The secret of change is to focus all of your energy, not on fighting
the old, but on building the new” This is one Mantra the world is living by these days. While we
are still trying to adjust to the socially distant times and the new norms, most of the business
sectors are facing unprecedented losses. The travel and tourism industry, aviation sector, media
and entertainment industry, transport sector, hospitality, sports industry are some industries
that are hit adversely due to the pandemic worldwide.

Talking about the sports sector,

in order to avoid crowd gathering, to ensure the safety of the players and to abide by various
rules and norms stated by various countries, major events like Tokyo 2020 Olympic Games,
Euro 2020 have been postponed to the next year. Stadiums all across have remained empty as
corona virus brings professional sports to a standstill.The social distancing measures which are
brought in to limit the spread of corona virus have a significant effect on sporting
competitions.Right from the athletes to media coverage, there has been an impact on every
aspect of sports.

‘The Covid-19 pandemic has shaken the world; leading to a public health emergency that has
led to the deaths of millions and affected the global economy to such an extent that it seems
like the sharpest recession since the Great Depression’ : IMF.
To limit the spread of the virus, professional leagues around the world have suspended their
activity, which has caused a dent in the sporting calendar. In fact one of the world’s most-
watched sporting broadcasts, the Summer Olympics, has also pushed back its events by a
year.IPL is proposed to be conducted in UAE without any audience. Wimbledon is cancelled;
Formula One motor racing is on the verge of total cancellation.

The graph below shows the revenue lost by the sports sector due to the current pandemic

The global value of the sports industry is estimated at US$756 billion annually. If IPL 2020
stands cancelled, BCCI is said to face a loss of $500 million subsequently all the other
dependent sectors shall face loss too. If, what is considered to be a temporary shutdown,
exceeds then the leagues would be unable to meet their commitments to broadcasters,
restricting their ability to bring income back to the clubs. The impact on the industry would be
dramatic: no games mean no TV deals and no match day income; no income means no clubs. It
is very crucial to look for ways by which the sports sector minimizes the loss and resume the
games to minimize further loss but it is not possible to function the way the industry was
before.
 New strategies and rules needto counter the new normal. With the above factors in mind,
these are some of the strategies the industry could adopt in response to the disruption:
 The industries can encash on the spike in media consumption by finding new ways to
engage consumers. In the absence of live games, it is important to deepen the pool of
content available to fans. For instance, classic games, archived content, documentaries can
be aired to keep the audience engaged.
 Online Gaming competitions can be organized, where players are able to live stream from
their homes. Releasing documentaries on lives of legendary sports personalities will not
just get the viewers hooked but also enhance viewer’s knowledge about a particular sport.
Live quarantine parties on social media can be planned where current and former players can
be invited and their classic games can be viewed by fans followed by a Q&A.

Long-term Adaptation

The current increase in media consumption is in contrast with the traditional broadcast
television, where the main programs are structured around an evening prime time window.
The corona virus pandemic highlights how dependent the sports business model is on television
broadcasting and lives audiences. Since, sports is dependent on broadcasters and broadcasters
on ad revenues, it becomes all the more important to explore more diverse income streams.
Generating income can be possible through live monetization models which can include live
payments for digital items, additional camera angles, fan commentary and podcasts.
The future holds opportunities for virtual technologies to grow with the current absence of
“real” sports. In these difficult times, the ability of sports to bring people together is missed
more than ever. The industry may be in an uncertain space, but with the right strategies can
emerge from the crisis stronger and more popular than ever. This pandemic may change the
groundwork that goes into sports, but it will not change the industry’s focus on expanding
sports around the world.”
PSYCHOLOGICAL IMPACT
While a certain level of anxiety over the corona virus is completely normal, high levels of
anxiety or stress can have a devastating effect on daily life. In this regard, sport psychologists
report a higher demand for online psychological counseling and diagnosis of psychological
disorders among these athletes during the pandemic, including fear of being infected, anxiety
of physical recovery if infected, lack of access to fitness centers, disturbed sleep, eating
disorders, obsessive-compulsive disorder, and family conflicts. Inability to manage stress and
lack of proper coping may lead some to experience short or long term depression. The COVID-
19 infection has recently been found to seriously suppress the neuroendocrine-immune system,
which is closely involved in stress and stress resilience.Periods of inactivity, isolation from
sports teams, distance from the sports community, less qualified interactions with sports
coaches and lack of social support (e.g., fans, sports organizations, media, etc.) have also been
shown to cause emotional distress and psychological disorders in sportsmen.

Due to the multi-dimensional impact of pandemic-related consequences for elite sportsmen, as

a unique population, analytical studies identify circulating bio markers, time-course of effect
and negative impact, and response to coping strategies or treatment interventions (e.g.,
Psychological First Aid intervention) might be useful, and in line with the bio-psycho-social
approach.

In critical situations, health authorities and sport communities must identify their priorities and
make plans to maintain sportsmen’s health and activities. Several aspects play an important
role in prioritization and strategic planning, e.g., physical and mental health, distribution of
resources, and short to long-term environmental considerations.

THE BUSINESS MODEL OF SPORTS

The main income streams for sports leagues comprise: broadcasting (sales of media rights),
commercial (sponsorship and advertising partnerships) and match day revenue (ticketing and
hospitality).Professional sports leagues function similar to entertainment companies, where
each team in a league is like a different channel.
The teams have their own identities, employees and fan bases, but the overall ‘programming
schedule’ (the rules of the game and the fixture list) are set by the leagues.
This comparison may not adhere to the traditional structures of sports but the reality in both
sports and entertainment is that the more eyeballs on the subject/product, the more valuable it
is.