Written by: Miller Ladusau
COVID-19 has caused almost every business, school, and sports network to take an economic hit. This year has been full of unknowns, and we lived through quite a historical event. COVID-19 has ruined a lot of things in the last year, but the sports community has especially suffered — in more ways than one.
The Olympics
One effect that the pandemic has had on the sports world is the 2020 — now 2021 — Olympics. Sports fans have waited four long years for the Olympics, and now they cannot even partake in watching the long-celebrated competition; the last time the Olympics was canceled was way back in 1992. This cancellation means that athletes must keep up their hard-core training regimens and diets, and fans must be patient for another long year.
Advertising
The hit the sports industry has taken due to COVID-19 has majorly affected advertisers. There is not much, if anything, to advertise, simply because there aren’t as many games and events taking place. “The situation isn't much better for advertisers during regular major league sports programming. According to data supplied to Marketing Dive from TV ad measurement firm EDO, live sports events account for eight of the top 10 programs in its SER Index, which measures the effectiveness of a TV ad based on the actions viewers take.”
"The unprecedented cancellation of March Madness, in particular, has dramatic implications for advertisers, who spent an estimated $1.126 billion in total on March Madness advertising in 2019 for an estimated 22.5 billion impressions,” the company said. This year, sports organizations are not even making 50 percent of the commission that is typically made.
Ticket Sales
Due to social-distancing practices, ticket sales have majorly decreased. Because crowd sizes are supposed to be contained to a small number, there are a limited amount of admissions at every game these days; small crowds mean much less money. Because ticket sales cannot really resume any time soon, teams are getting creative with new ways to sell tickets and advertise. For example, “several teams, including the New York Mets, Los Angeles Dodgers and San Francisco Giants, are offering fans the chance to buy cardboard cutouts that will take their place in the stands. MLB will also use virtual crowd noise that will be audible to fans watching at home.”
A bright spot in the sports industry right now is the player’s pay in the MLB. Although their season has been cut short, players will still receive their full salaries. “When weeks of negotiations failed to yield an agreement, MLB Commissioner Rob Manfred mandated the 60-game season, with players receiving the full prorated salaries they wanted.”
Although COVID-19 caused quite a sticky situation for the sports world, many organizations stepped up to the plate in order to continue to advertise and pay their players. The MLB is just one example of how teams are adapting to the challenges this pandemic created, and how creative advertising can really be. Hopefully, sports will be back in full swing this time next year.