March was not a good month for sports. In fact, some might say that it was the worst month in the entire history of athletics. Just days ahead of the NCAA March Madness, the college basketball tournament was called off. The NBA had just postponed its season, followed by the NHL, MLB, MLS and the PGA. The loss of March Madness and MLB’s Opening Day hit especially hard, as they’re two of the most prominent sports events in the month, and caused pandemonium for sports fans, sports gamblers and sportsbooks. With activity still suspended, and no clear picture of what will happen next, the U.S. sports world is suffering its worse economic depression ever. The tally is reportedly up to $12 billion already – in just two months – and continues to climb. The next couple of months are crucial to avoiding any further financial catastrophes.
According to analysis prepared by ESPN, the economic upheaval for the sports industry in the U.S. is going to be felt for some time. Hundreds of thousands of jobs have been lost, and may permanently remain off the books, and, if NFL and college games seasons aren’t able to get going this September, things will be even worse. While it’s obvious that the entire world is suffering from a huge economic meltdown, the losses for U.S. sports could represent close to 20% of their aggregate value.
ESPN explains, “From stadium authorities to youth sports complexes, from rec centers to global TV networks such as ESPN, the scale of devastation is only now coming into view. Some organizations, especially at the lower levels of sports, say they’ll be lucky to survive. The pain is especially acute among the army of low-wage service workers who support pro and college sports and are now unemployed. The losses are draining tax revenue that helps support local services such as police and firefighters and contributes to the quality of everyday life in thousands of communities.”
To reach its conclusion, ESPN employed the help of Dr. Patrick Rishe, founder of the Sports Business Program at Washington University in St. Louis, Missouri. He compiled data from the different sports leagues, relying on certain assumptions, such as whether or not leagues that were starting to get active when COVID-19 came roaring into town will be able to play at least half of their respective seasons. He also projected both the NHL and the NBA canceling their regular seasons and holding playoffs in front of empty stands.