Only 3 months in to the year and the world is already fighting it’s hardest battle of 2020. With the outbreak of Covid-19 a different strain of the contagious respiratory virus, coronavirus; many different industries are bracing for the inevitable financial impact.
Tokyo Olympic Games Postponed Until 2021
Already we have seen many different industries severely hit by the covid-19 outbreak, from travel and tourism to the sporting world with almost every global sporting event cancelled until further notice. The latest sporting event to be pushed back a year is arguably the biggest sporting event in history, the Olympic Games.
Not only will this impact Tokyo’s economy, but it will also impact many of the athletes and sponsors that were due to play a vital role in making the Tokyo Olympic games one to remember. The Olympic games generates millions of viewers every 4 years, and hundreds of thousands of tourists to the event. Although Tokyo may not be completely cancelling the games, they have pushed it back a full year which will also have huge financial implications.
The hardest hit in Tokyo is likely to be local hotels and tourist attractions, not only will they miss out on the many foreign tourists, but they will also miss out on their own natives due to the public lock down that the Japanese government have imposed.
However it is not just the Olympic games that have been postponed, due to the Covid-19 pandemic, all other sports have been postponed with most cancelled until further notice.
The Premier League during Covid-19
Football, the world’s most beautiful game, boasting the largest audience of any worldwide sport has had many of it’s top leagues cancelled and postponed. The premier league, arguable the largest football league in the world has postponed the entire season until further notice. However the premier league are very reluctant to officially announce that the league has been declared null and void due to the loss of earnings that many team would have received due to prize money and sponsorships.
If the premier league was to completely cancel the season, this would result in no team winning the premiership title. It would also mean that no team is relegated from the league, much to their relief. However the biggest financial impact would be the £100m promotion that teams from the lower division would miss out as this would mean that no team is promoted to the premiership as the season could not be completed.
The premier league have expressed a desire to play the remaining fixtures behind closed doors, however many club owners have spoken out against this by claiming that match day revenue would ultimately suffer hugely and most clubs would be forced to apply for a loan and other sources of funding due to the lack of supporters present.
Other concerns that have been raised include supporters flocking to the stadiums to support their teams regardless of being allowed entry or not. This was recently the case at the PSG V Dortmund game in which PSG supports arrived in their thousands to stand outside the stadium and support their team.
A recession for the whole sporting economy?
There is no doubt that the cancellation of all major sporting events around the world will have a huge financial impact on global economies. From match-day revenues for local businesses, hotels and tourist attractions, to the individual clubs that miss out on promotion and sponsorship’s as a result. It is not just the sporting industry that is impacted by this, it affects many more businesses in different markets, from catering, hospitality, travel and betting firms. The financial impact will be felt globally.