The Impact of COVID-19 on the Sports Industry
Written by Emily Liu
The arrival of COVID-19 made sports all around the world come to a standstill. While businesses and schools managed to continue operating through virtual connections, the sports industry could only hopelessly sit back and watch as revenue drained out of their pockets.
The cancellation of sports in March eliminated 1.3 million jobs. As a result, experts estimated that in just two months, the sports industry would lose a total of $12.3 billion. Though many may not sympathize with the industry as a whole, they forget about the employees who rely on the continuation of sports to make a living.
Of the 1.3 million jobs lost, only around 17 thousand of them were actual sports players. That left the remaining 99 percent of displaced employees scrambling to find replacement jobs. Additionally, of the $12.3 billion predicted loss, athletes were only estimated to lose $349 million. On the contrary, trainers/instructors, coaches/scouts, and attendants were at the forefront of losses, losing around $4.18 billion, $3.18 billion, and $1.14 billion, respectively.
Much to the fans’ and the players’ delight, the sports industry has slowly opened up with modified fan-less games. Yet, even with this improvement, the industry is still speculated to experience considerable loss. According to Economic Modeling, for every fan-less game, Major League Baseball (MLB) will lose $640 thousand.
With the future of COVID-19 still inconclusive, the sports industry can only hope for the best. If another spike in COVID-19 cases occurs, there is no doubt that the industry will be one of the first impacted.
Source: Economic Modeling