During the coronavirus epidemic, the sports world has been hit hard. Events and leagues have been suspended until the country can allow people to congregate.
According to projections from Two Circles, a sports marketing agency, only 53% of the scheduled sporting events in 2020 will occur.
The report reads, “Originally, 49,803 major sports events were scheduled for 2020; however, global social-distancing measures introduced as a result of the COVID-19 pandemic have led to a large proportion of sports events being postponed or canceled. In March, only 1,870 of the originally-scheduled 5,584 events (33%) took place.”
The amount of revenue that has been lost in the sports world alone is massive. Two Circle estimates that the global sports industry will generate just $73.7 billion in revenue in 2020.
This amount is $61.6 billion less than the projected revenue before the COVID-19 pandemic. In 2019, the global sports industry generated $129 billion in revenue and was anticipating a growth in the industry by 4.9% year-on-year.
Gareth Balch, Two Circles CEO, said: “Sports properties are keen to return as soon as possible as the longer the sports calendar is on hiatus, the worse the financial impact will be. However, sports should – and will – only return when it is deemed safe to do so, and with the support of all relevant government and medical authorities. Even hosting sports without crowds poses a complex challenge.”
Dr. Anthony Fauci is the United States leading infectious diseases expert, and he is hopeful for a return in action this summer. However, he believes that the games have to take place without fans, and the players must stay in hotels. Other countries such as South Korea and Australia have begun to do just this, and the coronavirus cases are still declining.
Seton Hall University’s Stillman School of Business conducted a poll to see how comfortable fans would be with attending sporting events this year. In it, 72% of Americans said they would not attend a sporting event in 2020 if a coronavirus vaccine was not available. Just 13% of those polled said they were comfortable attending events just as they did in the past.
The result in New Jersey
The impact of COVID-19 has impacted the entire country, especially New Jersey. The northeast is a powerhouse and leader in professional sports. The state of New Jersey profits from sports gambling, which has taken a major hit with the lack of sports.
One of the big losses for the state has been March Madness, followed closely by every other American sporting event. People have taken to online poker and betting on sports such as table tennis to remain entertained.
The revenue from sports gambling in New Jersey has provided help for the horse racing industry in the state. This is just one example of the ripple effect that has occurred because of the cancelations.
As the country looks to recover from this pandemic, hopefully, sports can return soon, and New Jersey can continue to operate as one of the country’s leading states in sports wagering.