Economic Challenges for Sport Managers Assignment | Homework for You
During such a distressing time for everyone, COVID-19 has took a toll completely over many economic values in America. Sport managers in the industry in particular have faced lost revenue in all areas of sport due to the suspension in sport entertainment.
For instance, the Majority of the NBA shut down all practices facilities the moment a Utah Jazz player tested positive for the virus, this proceeded the NBA to shut down the season in its entirety (Wojnarowski 2020). Without a season the NBA sees no ticket sales, food, beverage, merchandise and etc. The impact of having zero fans in the stands can cause the NBA’s finances to sky rise, nearly costing them a fortune (Quin 2020). This has created a negative domino affect to then leading players and coaches having to sign a salary reducation contract (NBA 2020). This then caused a bigger dilemma being that most players are signed years in advanced and paid out throughout the course of the regular season and was nearly completed before the ban of the NBA (Quinn 2020).
Furthermore, the NBA may take on a strategy to overcome these challenges. Marketing that the media industry is far more reliable and suitable during such a time and increase the fan base viewing on T.V can play a part. By doing this sponsorships ads will have to play a big role.
Being that people will be forced to continue social distancing and not be in a room (stadium) with 10+ people, fans will want to be active in their homes for their favorite sports team, rather then not supporting them at all.
Homework for You