Page 38 - NILE EXPLORER

Sports

Sports Analysis: Celebrating a win

Impact of COVID 19 on global sports

he coronavirus pandemic has sent employment in the EU was 5.67 million important component of Socio-
Tshockwaves around the world, persons. That equals 2.72% of total EU economic development of a country. The
leading to a public health emergency employment. active participation in sports improves
that has killed thousands and plunged Every 37th employee works in the sport community health and productivity,
the global economy into what the sector. Sport uses more intermediate reduces medical expenses, imbibes
International Monetary Fund warns goods than an average sector, and thus discipline in character, generates great
could be the sharpest downturn since generates important revenues in other leaders, and enhances social cohesion.
the Great Depression. industries. The execution of a mega sporting event
Not surprisingly, COVID-19 has also Therefore, governments should have a helps in developing infrastructure,
interrupted the sporting calendar, generates employment, secure inflow
with professional leagues across the special interest in protecting jobs in sport of foreign capital, generates players
globe suspending their activities to as an industry with a strong economic and athletes, and thus contributes
limit the spread of the virus. Even the impact in terms of employment and its significantly to the economic
Summer Olympics, in Tokyo, typically share of GDP. development of a country. Therefore,
one the world’s most-watched sporting In the simplest terms, there are three it can be said that the impact of sports
broadcasts, has been pushed back a year. main income streams for sports on economies and society is multi-
According to reports by the World leagues: broadcasting (sales of media dimensional.
Economic Forum, the global value of rights), commercial (sponsorship and Each sport monetizes differently, but the
the sports industry was estimated to be advertising partnerships) and match day general principle is that the organizing
$471bn in 2018 – an increase of 45% revenue (ticketing and hospitality). body distributes its total income between
since 2011 – and before coronavirus its participating clubs. This is usually
interrupted sports, the only trajectory Professional sports leagues are analogous structured as minimum guaranteed
seemed to be upwards. to entertainment companies, where payment with performance- and/or
The best illustration of the economic each team in a league is like a different competition-related bonuses on top.
channel. The teams have their own
impact of sports, is to look at Europe— Individual clubs are of course able to
a region with a well developed sports identities, employees and fan bases, but generate their own income, by competing
sector— where sport is an important the overall ‘programming schedule’ (the in other tournaments, signing their own
economic sector, with a share in the rules of the game and the fixture list) are sponsorship agreements or developing
national economies, which is comparable set by the leagues. This comparison may their own direct-to-consumer (D2C)
to agriculture, forestry and fisheries not please the purists, but the reality in media subscriptions. But fundamentally,
combined. Accordingly, the sport both sports and entertainment is that the the financial success of any individual
industry’s economic and social strengths more eyeballs on the product, the more club relies on its involvement in an
as a tool to tackle the economic crisis valuable it is. overarching league.
caused by the COVID-19 pandemic The major sports are all reliant on The collective power of these leagues
cannot be underestimated. broadcasting income, as demonstrated to sell media rights is incredible. The
Researches indicate that sport-related by revenue data from the biggest leagues NBA’s current TV deals are worth $24
GDP was 279.7 billion euro. This equals over the last five years. The global value billion over nine years. The English
2.12% of total GDP in the EU. Every of sports media rights is around $50bn – Premier League agreed a new contract
47th euro is generated by the sport sector. but 60% of that is accounted for by just with broadcasters last year equivalent
Sport is employment intensive, meaning 10 sports leagues. to $12 billion over three years. Major
that it generates more employment League Baseball has a seven-year media
than its share in GDP. Sport-related Moreover, sports emerge as an arrangement over $5 billion worth.

38 | The Nile Explorer 008