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Global Sports Revenue Drops by 43% As Sports-Related Tourism Loses $2.4 Billion

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The research data analyzed and published by Safe Betting Sites shows that the revenue from the global sports industry could drop to $73.7 billion in 2020 as a result of the global health crisis. In 2019, total revenue from the industry amounted to $129 billion. This is equivalent to a 42.8% decline.

Prior to the pandemic, the 2020 estimate was $135.5 billion and it was projected to grow by 4.9% YoY. However, numerous leagues across the globe have been suspended while sporting events have been cancelled altogether.

According to Two Circles, only about half of the sporting events that were scheduled to take place during the year were likely to happen. 49,803 events were scheduled for 2020 prior to the outbreak.

By April 20, 2020, the number of scheduled events had dropped to 26,424, equivalent to 53%. In March, out of 5,584 scheduled events, only 1,870 or 33% took place.

 

NFL to Lose $7 Billion in Ticket Sales, NBA and MLS Over $1 Billion Each

The National Basketball Association (NBA), one of the wealthiest sports associations, was among the first to shut down in March 2011. At the time, when the 2019/20 league was suspended, there were 259 games left.

As a result of the suspension, the NBA expects to lose between $350 and $450 million in gate revenue in 2020. On the other hand, non-ticket revenue losses could amount to $200 million.

According to Ticket IQ, the ticket revenue for the first round of NBA Playoffs 2019 was $308.3 million. Conference Semis raked in $179.3 million while Conference Finals generated $198.7 million. For the finals, revenue totaled $311.2 million. Based on these figures, the loss could exceed $1 billion.

Ticket IQ also estimated a loss of $7 billion in ticket revenues from the National Football League (NFL) if no fans attend games in 2020. Four franchises in the league – The Las Vegas Raiders, The Eagles, The New York Jets and The New York Giants – would cost the NFL $1.3 billion in ticket value.

The Major League Soccer (MLS) projected a loss of $1 billion in revenue despite implementing economic concessions amounting to $100 million. With the cancellation of the entire season of the Major League Baseball (MLB), there would be a loss of $5.13 billion in ticket revenue.

In the US, the disruption of league seasons had by July 2020 lost $6.07 billion from the potential ticket as well as other game-day sales. The losses affected the NBA, MLS, MLB, XFL, NHS and Minor League Baseball.

Across the world, an analysis carried out by FIFA estimates that by mid-September, football had lost over $14.4 billion. The analysis points out that 150 of its 211-member association have at some point applied for emergency COVID grants.

 

US Sports Occupations Lose $12.3B in Three Months

Data from ESPN projects a loss of over $12 billion in revenue from the $100 billion US sports industry. This includes $3.25 billion in revenue from fan spending on professional sports and $2.4 billion from tourism related to youth sports.

It is noteworthy too that this figure does not include losses from tennis, golf, NASCAR and other minor sports as well as gambling.

Wages for stadium employers would suffer a $0.37 billion hit. This would go hand in hand with over 3 million lost jobs in 524 occupations that are related to sports according to statistics from the Bureau of Labor. These employees who earn on average $14 per hour would lose over 19.5 million hours.

According to Statista, the crisis could result in a loss of $2.2 billion in national TV revenue in 2020. Together, the NBA, MLB and NHL could cause an advertising revenue loss of $1 billion in 2020 for broadcasters.

According to MediaRadar, the three generated a cumulative $1.3 billion between March and June 2019. Between March 2019 and May 2019, the NBA generated over $800 million in ad revenue. The NHL raked in more than $120 million while the MLB generated about $60 million.

The same source projects that the cancellation of the NFL could lead to losses exceeding $6 billion for at least 3,000 advertisers. In 2019, it created ad revenue amounting to $4.6 billion.

In the US alone, the cancellation and suspension of sporting events in March had an impact on 1.3 million jobs. According to Economic Modeling, a three-month hiatus would result in a loss of $12.3 billion for sports occupations by mid-June. That is an average of $92,600 per minute.

Fitness trainers and aerobics instructors were in the lead with a loss of $4.18 billion while coaches and scouts were second with $3.18 billion.

sherine10sj@yahoo.com'
Nica San Juan

Nica is a BA Political Science graduate, startup founder and financial expert. She has an entrepreneurial spirit and started several startups from a young age, eventually becoming fascinated with stocks, cryptocurrencies and the blockchain economy. She specializes in financial tech and her expertise is in writing detailed tutorials and guides on how to invest in stocks and cryptocurrencies.