Coronavirus Impact / Sports Market of Rs.11.85 Lakh Crore Affected In US, Such Impact After 2008 Recession
New York (Matthew Futterman, Kevin Draper, Ken Belson, Alan Blinder). Coronavirus has severely affected the world’s sports market. In the US alone, the market of $ 160 billion (about 11.85 lakh crore rupees) has been affected. Tournaments and leagues of almost all sports, including basketball, baseball, hockey, college basketball, tennis, golf, have been postponed until April. No tournament, no ticket sales, no sponsorship, no advertising, no media payments. This is the first time in nearly two decades that the sports market has come to a standstill. Now the owners and stake holders of these leagues have expectations from the insurance policy itself. The cancellation and postpone of these games has also affected the players, teams, leagues and organizations.
James lost Rs 2.96 crore per match
NBA’s biggest player LeBron James has lost Rs 2.96 crore per match. Earlier, such an impact on sports was reflected in the 9/11 attacks in 2001 and the economic recession in 2008. Michael Lynch, a sports industry consultant and former director of Sports Marketing for Visa, said, “This is a big impact.” It has caused economic losses. Some teams and leagues have contract related provisions and insurance policies that may cover some revenue. But its figure is very small. ‘
NBA player LeBron James is losing Rs 2.96 crore per match.
NBA: 33 thousand crore loss from TV contract
The NBA has suffered a major loss in revenue from TV contracts. The NBA generates a total revenue of 9 billion dollars (about 67 thousand crores rupees). It comes from media fees. It has also suffered a lot due to ticket sales. However, no team has announced yet when they will refund the ticket amount. However, the NBA’s labor contract provides that teams can withdraw a percentage of players’ salary for each game. Teams do not have to spend money on travel or games.
NHL: Revenue will not be generated by performing concerts
The largest portion of the NHL’s revenue comes from tickets because it has a very low TV audience in the US. But this time the match will not be able to generate revenue. The National Hockey League (NHL) reduces the number of matches to make up for its losses when compared to other leagues. Many teams in lockouts allow concerts, other sports events to be held in their stadiums to increase revenue. But this time it will not be able to do so. The NHL does not give salary to players at the time of lockout.
MLB: Cable companies will not get fees
Major League Baseball (MLB) has also been postponed until April. Each team in the league has its own sports network. So there is a double whammy on the teams. They will not get the revenue for ticket sales. Also, cable companies will not get the fees because telecast is not happening due to non-match. Players will also not receive fees because according to its player contract, the commissioner can cancel the players’ contract if a national emergency is declared and there are no games.
Will not be able to raise charity, last year got 1500 crores
It is too early to say how much impact tennis and golf have on the tournament, as all its players have different contracts. They will only lose prize money. But many PGA Tour charities will not be able to gather in golf. He raised around Rs 1500 crore for the charity last year. At the same time, the National Football League (NFL) will not have much effect because its season is over in February. The league has also canceled an annual meeting to be held in late March.
