With businesses, markets, and entire countries going into lockdown, the economic and social effects of the Covid-19 pandemic have been widespread. However, not everything has been gloomy. Certain business sectors have taken a serious downturn while other sectors have seen improvement. Among one of the hardest hit has been sports, in general, and group sports specifically. Many major sporting events have been canceled and still show no sign of being rescheduled anytime soon.
Sports fans who spent their weekends watching their favorite teams play have had little to look out for during the pandemic. Both bars and stadiums have been empty, but the ball is still rolling for sports fans with a different taste. Let’s have a look at how the sports industry has been impacted overall since the onset of Covid-19.
Sports-Related Industries
With sports activities at an all-time low, it comes as no surprise that industries related to the production of sports goods have seen a very slow economic year in 2020. One of the biggest consumers of sports goods is the USA, and after having self-imposed strict Covid-19 restrictions, it was unable to provide the kind of economic activity in the sports industry which many manufacturers relied on.
With businesses already in lockdown and the fact that sports centers were also closed, traders of sports products had little they could do with their inventory. Where other items were still consumed through eCommerce and people made use of them at home, sports were different. However, with the situation slowly changing and social restrictions being eased, it is forecasted that in 2021, the sports market will generate close to $450 billion, which is significantly higher than 2020.
Sports Trends
While mainstream sports such as football, basketball, and MMA have a dedicated audience that will quickly bounce back when they are offered these sports as entertainment, one of the biggest changes will be the way this content is delivered. While social restrictions are being eased and sports activities are resuming, there is little chance that audiences will be allowed to spectate in stadiums any time soon.
Combined with the fact that digital entertainment, online mediums, and dedicated sports broadcasting websites are on the rise, it’s unlikely that TV sports broadcasts will have the same value as they did in the past. However, this is not a bad thing as this change may influence the future of live sports streams in a better way, making room for more profit for broadcasters and better entertainment for viewers. As people have more access to better internet and more online entertainment options, the only rational move for sports entertainers is to follow the audience and deliver through a medium where they can more easily connect with people who are willing to buy their services.
Niches On The Rise
While stuck at home, some people started gardening, others have picked up that instrument they always wanted to learn, and there are those who decided to pursue a sport that could be done on their own with little to no gear. Activities such as running, hiking, and even meditation saw a dramatic rise. Many people who had been putting off their new year’s resolutions for many years now finally had nothing better to do than take that resolution list out and start with the fitness objectives.
Sports have also been a form of socialization for the people involved and each sport has its own community. The only way people could socialize during lockdown was through digital mediums and if they wanted to do something together rather than just talk on a video call, multiplayer gaming was a great option. In 2020, Microsoft stated that it had witnessed a 130% increase in multiplayer gaming activities during the months of March and April. Sales of gaming consoles, PC games, and gaming accessories have consistently been on the rise. It makes sense as people are stuck at home, online multiplayer gaming gives them the opportunity to socialize and play a game at the same time.
On one hand, we could say that the sports sector has taken a hit, but on the other hand, it is like a see-saw effect where the downward trend in one area has resulted in an upward trend in another, even though they are not directly correlated. While these changes in the sports industry have had a massive economic impact that radiates to many areas outside of sports, it is in tune with the global economic downturn that we are experiencing. No one can say exactly how long this change in sports will last, but hopefully, we will soon see sports the way it used to be.