2020 has brought, and will bring, many changes. While Covid-19 has most notably affected the travel industries, it has also affected sports. Sports and professional athletic teams are a huge industry in itself and they are no longer allowed to compete due to social distancing. While congregating in large crowds watching a sports game is probably not the best move right now, it has taken an even deeper affect that many might not realize.
Moving forward after this pandemic, we will likely see many changes to sports and the sports industry. Stadiums will inflict rules about social distancing and sitting at least six feet apart. This means that not every single seat in a stadium will be filled, which leads to less ticket sales and revenue for the sports teams and/or universities. Teams might try to raise the price of the tickets to compensate for the loss, or teams will lose lots of their funds. These funds are important as they help pay the athletes, staff, employees, and facilities. Either way, the sports industry will see some major changes in the upcoming season.
Another major aspect of the sports industry is sport contracts and sponsorship deals. Sport sponsorship contracts are very large and very risky investments. To begin, a company must be very confident that the team they are wanting to sponsor is the best team to represent their company. The team has to perform and do well, as well as have a loyal and good fanbase. It is already a big gamble if the team is going to win or not, but will the sponsoring brand get the audience intrigued if the team does not perform well during the season? You also want to make sure that the team’s fanbase has good chemistry with the company. People get very emotional when it comes to sports and their team. People want to make sure that the best company is sponsoring their favorite team. A bad connection with the fanbase will not reflect well upon the company.
Another influencer in how sports deals come about is politics. Athletic directors, board members, and team management play a major role in deciding which companies are chosen to represent the team. Unfortunately, there are always going to be those in favor of a sports contract and those opposed to a particular brand representing the team. Those opposing forces can ruin multi-million-dollar deals between companies and sports teams simply because they are against it or not in favor of the brand. Sometimes all it comes down to is one person standing in the way or a majority vote to end a contract deal from moving forward. RoofClaim.com has had its own experience with sports deals gone wrong. Click here to read about a recent deal with UCF that sadly did not end up going through. All of these factors effecting sports deals will be amplified next season due to the unknowns Covid-19 will bring about.
Sports team deals and contracts are that much more of a gamble next season because it is unsure how many people will show up for games and how the season will play out. However, the sports industry will return back to normal when the virus blows over and people start to become more comfortable again. The sports industry cannot thrive without the lucrative sponsorship deals, so it will only be a matter of time before sports fans will once again be cheering like crazy from the sidelines for their favorite teams.