COVID-19 Affect on Tokyo Olympics, Property Stocks, Sports Sponsorship, NBA and NHL, Covid-19's Impact on Football's Revenue, Spain’s Pre-season Training Halted, Major Series of Cricket would be Postponed
The sporting calendar will be packed in 2021 after postponed of major international events because of the pandemic.
On March 25, International Olympic Committee President Thomas Bach made history when he announced the postponement of the Games for the first time since the end of World War II.
COVID-19 Affect on Tokyo Olympics:
On March 24, Prime Minister Shinzo Abe asked the IOC (International Olympic Committee) to postpone the 2020 Tokyo Olympic and Paralympic Games.
The result of “economic damage” from postponing the Olympics for one year would be about ¥640.8 billion & post-Olympics effects would take a hit of ¥218 billion as a result of a delay.
- The businessman paid ¥881 million by Tokyo's Olympic bid committee lobbied figure at the center of French graft probe.
In simple terms : The games will surge economic activity by promoting construction in the years leading up to the event, and by boosting inbound tourism and associated consumption at the time the Games take place.
A lengthy postponement also would affect the value of the Tokyo Games for the many gigantic corporate names that were lined up as sponsors by Japan and the IOC(International Olympic Committee).
- Japanese companies might pursue revenue or refurbishment for their $3 billion investment in the Tokyo Olympic organizing committee.
Toyota Motor & Panasonic, like Bridgestone, are global partners of the IOC. Canon, Asahi Breweries, Mizuho Financial Group, and NEC are the official companions that have contracts with the Tokyo organizing committee.
"We don't know whether the Olympics will be rescheduled, and if so, for how many months or how many years," the sponsor said. "We don't know how a delay will affect revenue, but we are not thinking about contribution at this moment."
Fears of Olympics delay on Japan Property Stocks:
The postponed of the Tokyo Games impacts 11,000 Olympic and 4,400 Paralympic athletes, coaches and sports officials, local organizers, the Japanese government and national morale, international broadcasters, fans, and world sponsors. Additionally, the other facilities such as hotels, airlines and taxi drivers, and even 80,000 unpaid volunteers.
Tokyo is officially spending $12.6 billion to organize the Olympics, which would be lost if the games go ahead without fans in empty stadiums.
The Repercussions of Covid-19 in Sports Sponsorship:
The estimated sports sponsorship industry of over $50 billion-$60 billion has been shocked by the cancellation of sports events, completion of seasons, and even entire seasons.
Airlines, car brands, and retail are vital three of the sectors that invested most in sports sponsorship and have been among the most affected by the Covid crisis.
Severe Pitfall on NBA and NHL:
The NBA completed 78% of its season while the NHL completed about 85%. By experts’ estimation, sponsors have lost almost 15%-22% of sponsorship value.
On the surface, the proposal for next year seems simple, but with world championships, football has just postponed the European Championship for a year. The sports calendar is a very complicated matrix and cannot be easily shifted to the next year.
"If the number of corporate bankruptcies enlarged, it may not be possible to meet the demand, but basically, if it is postponed, the economic effect will affected badly. That is a condition, but there is no doubt that postponement is the scenario where the greatest economic effect can be expected. "
Covid-19's Impact on Football's Revenue:
- Delayed of Football games will affect everyone from players, managers, agents to directors, and sponsors.
"It’s a scary time. There will be less money in the game and fewer jobs. Offers will be smaller, especially at our level. People are going to have to take cuts. You also have to think about the future. If there isn’t any football after contracts expire you have to find a job. If football doesn’t start until later in the year you’re not going to get paid for three or four months so it’s time to get into the real world. But if football’s not on, there’s no one to coach or scout and you’d have to look outside the sport" said Joel Byrom, Stevenage
It will certainly force clubs to become creative about how they can derive revenues from match days without fans in the stadium. For instance, in FC Midtjylland, the drive-in football concept was introduced where people will be watching the games on big screens from their cars outside the stadium.
Opportunities include converting operations to cashless, providing geo-localization services, increasing the use of blockchain technologies that ensure cybersecurity, and developing tokenization processes to maximize the fan experience.
The World Football Summit and SPSG Consulting together conducted a report with leading experts in the football industry, sports properties must respond in order to mitigate their financial pressures and maintain fan engagement. This has contributed both brands and properties the opportunity to be creative in order to remain competitive during the rest of 2020 and in the uncertain years to come.
Spain’s Pre-Season Training Halted:
But while things have been tough for the big two teams in Spain, the effects of the pandemic have been even more keenly felt further down the football pyramid
"Smaller football clubs have affected a huge impact, starting with fans not being allowed in the stadiums"
Smaller football clubs have suffered a big impact, starting with fans not being allowed in the stadiums.
The players went to Spain for pre-season training but weren't allowed to return to their home country as the virus raged through the city and instead had to stay in Spain for more than two months.
Major Series of Cricket would be Postponed:
Cricket has seen international series postponed, the Indian Premier League(IPL) put on hold, and the T20 World Cup in Australia thrown into doubt by the coronavirus pandemic.
- The world's richest tournament, the Indian Premier League(IPL), has been suspended,
- The International Cricket Council(ICC) has rescheduled the T20 Cricket world cup due to coronavirus pandemic.
The IPL was firstly scheduled to start but was delayed until been postponed indefinitely after the Indian government extended the country's lockdown.
The Cricket West Indies (CWI) on Saturday announced a temporary 50 percent reduction in salaries and cricket funding across the entire regional cricket system, effective from the start of July due to the ongoing coronavirus (Covid-19) pandemic.