New Study Finds Global Sports Industry Will Lose Out On 61 BILLION Dollars Thanks To Cancelled Events
An interesting study was published by Two Circles today that focused on the future of the sporting event world for the rest of 2020.
SOURCE-Only 53% of the sports events originally scheduled for 2020 are likely to take place this calendar year according to projections by Two Circles.
My first reaction to this number was "that seems a little high, no?" I would've guessed that number was closer to 25%. Encouraging, I guess?
As of April 20, Two Circles models – which update daily based on changes in the rate of infections and confirmed scheduling alterations – show that 26,424 events are due to be held by calendar-end. This is 53% of the events anticipated pre-Covid-19.
Like any model, I'm sure this changes by the day. This study was published today, but that 53% number could go higher/lower by week end. Still interesting to see where we are at.
As a result of the interruption to live sports, as of April 20, Two Circles estimates that the global sports industry will generate $73.7bn in revenue2 in 2020 – $61.6bn less than the $135.3bn projected before the Covid-19 outbreak. In 2019, the global sports industry generated $129bn in revenue and it had been anticipated the industry would grow by 4.9% year-on-year before Covid-19 struck.
Almost every industry across the world has been hit hard, but that $61 billion number? Sheesh. To put that number in perspective, the combined value of the 19 highest valued NFL teams is $62.3 billion.
Sports are slowly coming back across the world:
Properties such as German football’s Bundesliga plan to recommence from May, albeit with only 240 people – including players, coaching and medical staff, match officials and production staff – involved per game. Sports in countries where Covid-19 infections appear to have peaked, such as South Korea and New Zealand, are also eyeing behind-closed-doors returns.
We will see a spike in September. So, if you are wondering when sports will come back on a big scale, it's looking like September would be a good bet.
“Compared to most other industries, in recent times of economic adversity sports has proven to be recession-resilient. Whilst live sports is halted, every corner of the sports industry will continue to feel this significant financial pain, but we are certain that it returns, whether that’s behind-closed-doors or with full houses, sports’ economy will thrive once again,” he added.