How is coronavirus affecting the Sports Industry all major events are being counseled all postponed as the pandemic takes its toll worldwide a multibillion dollar business is now at stake so can sport survive the break this is inside story. Hello and welcome to the program im peter told me it is a very very lucrative business and almost recession proof but sport is being dealt a financial blow by the coronavirus major events have been canceled or postponed for the 1st time in many years from the Tokyo Olympic games to football matches fields arenas and stadiums will be empty for a long time to come athletes organizations and thousands of people who work at the sporting venues all affected revenue from broadcasting deals sponsorship contracts and match tickets theyre all drawing up the Business Model for many sports is under threat and has to adapt to measures to counter covert 19 but some sporting events are going ahead the bundesliga season could resume in germany this month and the n. B. A. Does appear ready to reopen its practice facilities. Ok lets have a look at some of sports estimated financial losses in the u. K. Football cricket and rugby could lose around 860000000. 00 in the coming year one Analysis Firm puts japans losses in revenue terms for perspiring the Olympic Games at 75000000000. 00 another recent analysis is predicting u. S. Sports will lose at least 12000000000. 00 the top 5 football leagues in europe well they could lose as much as 4. 5 1000000000. 00 in combined revenue if the pandemic wipes out the entire season. Ok there we are here we go lets introduce our panel for you from liverpool we have kiran mcguire football finance lecturer at the university of liverpool in your own day in cameroon on skype is Patrick Bialy happy hes the manager of the retired Champions League footballer samuel eto and in milan also in scope we have 10 clearly palmeri be in Sports Correspondent and formerly a presenter for welcome to you all Kevin Maguire 1st in liverpool how many sets of nerves are being exercised in boardrooms not just up and down in the u. K. But around the world and i think practically every club is looking actually at the progress which is being made or is not being made in terms of finding a way of addressing the Global Health issues for poor cannot continue before paying crowd until a vaccine has been found in reality and therefore clubs will have been getting out their spreadsheets looking at the the income thats not coming in and working out how long they can continue to pay wages for 10. 00 created primary in 2020 was supposed to be a golden year for International Sport given what were dealing with could it have gone any other way so far. Well honestly tried the whole war this are one of the its a now you know i believe the most common thing we heard. And you probably even said many times in news is there us in our view that wars and seen since the war and considering how it has gone and considering that its everything is at printing it its something in pockets because if it football if formula one if model g. P. For example they will be able to recall the part of the season still some things would be back there then it than it was but it is that for sure of that from now on for the next season on the many things financially will have to change we have to change the pis this will have to change the way thought balis finking get the future the budget the revenues and also the fact that we dont know for how long we will have to do without crowd the fans saw that the sooner that football Start Talking about football football spouse starts to they think about how to get that aves the better these because these are start the now maybe will not be as violent as it has been the last 2 months but the one ball one day from the other like it has happened at the bet at the end of every 30 can be really happy and you on the income are in the take us through the impact on africa because it occurs to me that so many african countries is like some of the European Countries football d is a religion and people can practice that religion they can go and watch a game yeah i mean what is happening today in the world especially. Concerning african football its something that we cannot imagine for. I think. My father was saying we have to rethink about the organization of football and we have to think about how to impact people again with food but because. We do not know exactly when this thing will stop and actually when things will start again we will have to make it different ways. To impact the Financial Impact is very huge because that. Number will not be facing people not going to the stadiums people not going to watch the games i mean its going to be completely different and we do not know exactly how but i mean the African Confederation there are thinking about how to make it happen that thinking about solutions to come out from the crisis but it will be it wont be easy for everybody i think will have these will never be like before here and your speciality is the financing of sport and i guess as well a corollary of that would be where the money comes from and where it goes to because theres clearly like a almost like a fiscal pyramid scheme here where you know the revenue comes in say from advertising or Something Like ticket sales is any part of that equation is it ring fenced based on previous years of prosperity i. E. Are the insulated against taking the kind of hit that were talking about. No mean most football clubs have a model which is to aim for sporting success so therefore the financial considerations are very much on the secondary level even if we take a look at something as successful as the premier league 2 thirds of clubs are losing money on a day to day basis and theyre reliant upon owners to come in and rescue them if we take a look at Roman Abramovich at chelsea he put in around about 300000000. 00 into chelsea last season purely to allow the club suit to fund the acquisition of new players so with so many clubs living on a month to month basis. It is us or of this nature which has taken away the 3 main sources of revenue clearly theres no match day income because we cant have crowds at matches the t. V. Companies are no longer willing to pay the collapse because theyve got nothing to broadcast on the sponsors theyre equally unhappy because their products arent being associated with the clubs anymore so footballers lost all of its income its now reliant upon owners and its also reliant upon it its got the and the savings but very few clubs too soon if you go a lot its lose you go away from the elite clubs in the major leagues then most clubs have relatively low Bank Balances because its that next match and the money generated from that next match which is going to see it through to the next pay pay packet in terms of the players and the other running costs so patrick i guess that model can be applied where you are indeed talking about it across the entire continent of africa the money comes down to broadcasting rights the commercialisation of that is that sponsorship and advertising and event day tickets out of those 3 Revenue Sources those streams which one has taken the biggest hit where you are. The beacon pins it the big difficult piece mother for the relations because the for the ration of the mean responsible of the championships also they receive. I mean that because you know african were not professional we are mothers and then for the ration they give like an amount to the clubs to try to help them for the championship so i mean its going to be a kind of way that maybe the governments do will be. You have to put some money in for the organization of the football but its. The main impact of the broadcasting that. The sponsorships really really seem will be seen oh sorry on the organization so i think that this is this is the question theyre thinking about i think with africans going through asia and theyre thinking about how to how is going to be the next season because with this disease everything are stopped but i think that we were thinking in more on how to organize. These financial things then also i mean the main in general in isolation on the football in africa tank really in milan how does the Italian League come back from this looking forward to next season given that they were just in the middle of negotiating the rights for this season coming anyway and then they had to put everything into suspended animation because coronavirus hit. Yes and this is a very good point because looking at if you look at the top 4 top 5 elites in europe i think that one huge difference is made exactly by those who where theyve negotiated the sale of their lives lie when theres a legal Like Premier League and the likes of you have that exactly in these weeks were going to do were preparing the auction know exactly the beginning of february the thing is that before looking into the next season or these are live it will say but this season thats why syria is pushing and lobbying are not to try to get back on the pitch like the german teams have done on in germany but why because for example in korea league all the clubs at the verdi and received the money they of the season are they yet to receive from the t. V. Lights in england in germany any need telling steve that these last that chunk and when i talk about chunk im talking about some of that 1000000 of utils so on which basically every club is leaving on most of the clubs and what they get spanked that money they have received for this season now well they want to get back because it will get that money than they will never change the next contract and and the next contract will have to wait as we heard of the all dollars or a companys up the thighs meant that want war will not want to pay the same or t. V. That they not it will they are losing and they will lose money from happening time and thought they want the same money its obvious you are lets see a call up that immediately become a vicious see a call but of course the one that needs the money. For the we believe of that is the football clubs and thats why. There they they are facing us but i mean it only an emergency i dont see month after month 1st the walls are the alpha magic city now its the konami cant imagine city for the next 2 months and then it will be by your both their future about it because maybe you asked the 5 but you have already in need for the time to come kiran in liverpool. Sports a website in the states is saying that within one month of coronavirus officially having hit american sport 53 percent of sports just flipped and became online sport and the clever cookies the clever people the head of that what the companies did was they opened up all their back catalogue of recorded events can they make money doing that or can they make enough money to tide them over to the good times that presumably will come back again. I think in terms of the sports there is an audience for it and those those clubs those associations which do have a relationship with these sports will get some interest but that will be from a different demographic in terms of the traditional sports fans they dont really buy into a sports in the same way they want to say the drama and the excitement of a live event in terms of the back catalogs again there is some interest in it but the thing which set sport of power out from practically Everything Else that we say on the broadcast media is its unpredictability so therefore watching a football match when you already know the result isnt the same experience as watching it live and thats what generates the huge audiences so having issues of this nature of the sports and back catalogues it helps in a little way but until we get some form of live broadcasting and i would imagine that if the bundesliga does return next weekend they the viewing figures across the whole of europe will be incredible because all football fans will be desperate to see some form of football and i think the 1st game is should you want to be shot versus dortmund and i think ill be watching although i dont normally watch german football out of the match and that will be the attitude which is taken by the vast majority of fans and then we will be taking some good feelings from this because they you know here in the u. K. And in italy and spain will be taking the view that it germanys managed to get back there how many weeks are we behind germany in terms of dealing with the coronavirus and everybody mentally will be working out a time when football return in their own countries i think its a general acceptance that football is going to return behind closed doors probably for the remainder of this year potentially for the whole of the next season but some form of streaming services some form of the use of technology will allow clubs to claw back. Sure sounds in terms of making up for the loss of match day income and replacing it with Something Else in milan take me through how they do that because italian football in effect was one of the epicenters because there was that big game in february lots of spanish fans had flown to northern italy they enjoyed the game they had a couple of days in italy and they took the coronavirus back with them to spain so theyve got to be seen well youre shaking your head with that i mean thats a journal of record thats what happened so theyve got to be seen in italy to be doing a live match with people whove put their money across the turnstile to get a ticket and do social distancing how do they do it. Well i was 1st of all shaking my hands because. I had because. At the end of the february actually sue for much was revealed that the firm cannot buy this case in spain there was dated back to not actually the case but the death by court of items was dated back to february 13th which was 6 days before that id say was great and was actually exactly in the balance or so for as long as we know and we really so far and probably will never know enough on where the battle started as far as we know could be actually that from balancer was brought into the more or into easily or into a lot actually probably was as we are learning in these days everywhere talking about the social distancing and if we talk that to matters in that issue the clout and Football Players well if we talk about the crowd the the debate is extremely short that these are not cloud. Football games as a kid and were seeing a probably for the remainder of 2023 for the whole next season possibly until if not that a but a backs of the nation for the columbine spent really at least until it is under control the violence. Everywhere because because simply something we never we never learn to deal with and if social distancing thats to be applied everywhere in the war the then a sporting event is exactly the opposite of that if we talk about. The football if we talk about the fact that football is possibly for not just for but one of the sports where the least can be applied. The view the basically it was only for the 2 to fight one of 5 which means social distancing which means also perhaps the nala epithet their mass loss when you are there among other people ok well for them there is only one way air are long standing not wanting but isolation of clubs like it happens if for the walk up for example before the ok before that you will and im testing and continuously ok lets go back to patrick in the early happy in the lets broaden for a 2nd patrick in 2018 global sport was worth 471000000000. 00 us dollars thats everything thats from throwing darts at a board on the t. V. To football to boxing to the n. B. A. The n. B. A. In the states of course pulled the plug on the whole thing very very quickly arguably they did the right thing in africa where you are what happens if the economic comeback from covert 19 is a v. Shape but the comeback of fans going to watch sport is not that rapid its not that fast because according to i think youre n. B. A. Turner sports conducted a poll 80 percent of people say theyre scared to go back to a live sporting event whatever the sport may be how do they handle that there in cameron. Well the difficulty as i was saying is that how the teams will be moving up that after this could be because were sure that they never again actually look in vain and not also enough to go in u. S. Everywhere people would be scared to go back to the beach because we will not know exactly if its still possible to contract that virus or not so its a kind of sick a logic problem that well have to result obviously. If they come to me comes back of course we will not have strict revenues as soon as it comes back but well have to see and face how people will get it back and how we educate people more what about that beach. We talking also about the source of these tents and everything for me in something really complicated in terms of sport in terms of collective sport because when you talk about collective sport talk about contacts it can be basketball it can be football but its quite difficult to apply it on the part of the stadium i really do not know how its going to is going to be is going to look like but its something its something possible but we will be we will love or we will lose a little bit the full book that weve had before of course it will take time maybe for people to understand how to get back exactly tool to how it was before but i think things will be moving step by step this is what i think now. Its going to be perceptive again africa people here will. Well feed seed maybe the way im explaining it meaning that it will take time for people to go back to the beach ok actually people just need one thing they need to be sure that when theyre going to saves or if we shouldnt we can have it later on i mean but it wont be the best thing to come in liverpool are we talking about make or break if the coming say 9 months or 12 months doesnt go well particularly for some of the the poorer sports who are still eye wateringly wealthy but if youve got the head of british rugby saying look weve got to stage those big internationals at twickenham because if we dont 85 percent of all our revenue disappears in one season and we cant sustain that thats a bad situation for him for the associations for the clubs and for the fans. And i think theres no reason why sport should be immune from what were seeing in the Tourism Industry what were seeing in terms of their airlines which were seeing in terms of hospitality and manufacturing in terms of sport d its unique in many ways because it has a very high very high wage bill which tends to be concentrated on few individuals so what is necessary is for people to come together to accept that its a shared responsibility between players owners administrators and so on the only way that sport can survive is either a to go into hibernation and effectively cut back on costs until it returns or be a rely on extremely wealthy owners to fund clubs and and individual sports over the course of the pandemic but many of those wealthy individuals themselves are suffering huge losses in their wealth because its tied up in in particular assets which are falling in value so its going to be a huge challenge for the whole sporting world but i think there will be a gradual return of some sports the chances of those sports such as horse racing taking place without an audience where many many horse racing venues are practically empty is as a as they are already its only for mayor and then of course you know you take the lawyer does 11. 00 point if i might to all 10 creative tell mary in milan 10 created weve got a minute left on the program if we want to go to any International Sporting event do we as fans have to accept a reality and is this that the people who are staging and running the event be a Football Game an n. B. A. Game a cricket match whatever they can make us as safe as possible but they cant make is totally safe because those 2 things are very different. Absolutely and if that will be about crowd time these huge sporting events in their next times before boxing nation will be allowed im at but i didnt think that would be elite crowd that can afford those few tickets that can be habitable i mean major in england there are enough of that 5000 people if you talk about basketball could be available maybe only for about 5 on that 1000 people same as the stadium because you need also maybe people to control the access so that was the east changed for a bit of time which could also mean that they t. V. And the sports enjoyed by t. V. Could be more important because it would be the only way to what ports ok gentlemen well have to leave it there but thank you so much for contributing to this debate here on inside story thank you too i guess they were Kiran Mcguire Patrick can be really happy and 10 creative palmeri and thank you too for watching you can see the show again any time by the web site al jazeera dot com and for more discussion goes well a Facebook Page thats facebook dot com forward slash a. J. Inside story can also join the conversation on twitter at a. J. Inside story or tweet me ill tweet you back im at peta dobby one for me peter davi and the team here and a half thanks for watching i will see you very soon for the moment. I. They wanted 4 to 3000000 homes with the with the money that was 6000000000 pounds intermission. There is no hope of anymore because theres always a small cobbles people for really really good business. 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