With most international sporting events already postponed or canceled due to the pandemic pandemic that has hit the universe, sports industry revenue sources appear to have dried up and world sports executives fear an even more immediate deregulation is expected. future.
The Tokyo Olympics have been postponed to 2021, the NBA basketball championship and the major European football championships are pending developments and the same is true for all other major events to be held in 2020.
This unprecedented situation has caused serious concern to companies involved in organizing sporting events. Having secured serious revenue from major television networks and ever-increasing sponsorships, they had managed to turn the sport into an industry worth several hundred billion dollars, which now seems to be shaking.
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Leading athletes, in all sports, star in a fascinating spectacle that draws hundreds of thousands of spectators in theaters and stadiums and is watched by billions of viewers in all countries of the world. And until the organization stopped due to a joke, the sports industry was constantly increasing its revenue and influence. It is estimated that total revenue from sports-related services and goods reached $ 489 billion in 2018.
Nowadays, this business model is under threat. Although each sport has its own peculiarities, the proceeds come mostly from television contracts, sponsorships, tickets, hosting and catering for athletes and spectators, as well as the sale of various souvenirs. Cash inflows from these sources now appear to have dried up.
Some athletes are optimistic that in a few months we will face restrictive measures such as an unpleasant parenthesis. However, many others believe that spectators will not be immediately willing to crowd in crowded stadiums and the way we watch sports will change radically. In addition, the international federations are constantly doing exercises on paper to be able to reorganize and reorganize the calendar of events, which was already heavily loaded in a year where, in addition to the Tokyo Olympics, the European Championship was planned. 2020.
For their part, the big TV networks are constantly losing subscribers, who no longer have a reason to watch them. Their executives are forced to reconsider the contracts they have signed, both with clubs and federations. The same is true with large sponsors, but also with sponsors of individual athletes who see their pay being compressed. It is noteworthy that the two top footballers in the world, Lionel Messi and Cristiano Ronaldo, received a reduction in their salaries from Barcelona and Juventus respectively.
What this situation will lead to is unknown, as the pandemic has led the world of sports into uncharted waters.