The economic and financial impact of the first phase of the COVID-19 pandemic on the sports market

Abstract

Background: For the last several months, the world has been dominated by the coronavirus pandemic that effectively stopped the activity of entities in all fields of social life: finance, economy, culture and, broadly defined sport. The dynamic nature of changes and adaptation to a new reality were related to new restrictions and limitations on the functioning of society that were imposed by local governments. Information about the postponement or cancellation of mass sports events in all disciplines, including marathons, football, athletics, basketball, handball, hockey, rugby, cricket, sailing, skiing, weightlifting, to name a few, created confusion in the sports world. For the first time in the history of the modern Olympics, the Olympic Games and the Paralympic Games were postponed and took place in 2021. Material and methods: The authors analysed available reports that described the general results of the sports market as well as reports and financial statements for the period of the COVID-10 pandemic published by public joint-stock companies operating in different segments of the sports industry. Results: As a consequence of social isolation, society does not regularly practice physical activity, which may lead to deterioration in mental state and increase anxiety and stress. Because of the pandemic, millions of jobs around the world are at risk. Technology, including access to the Internet and on-line content customised to individual users’ needs, is an excellent solution to alleviate the effects of social isolation. E-sports have become very popular in the mass media, not only in the digital world, going beyond internet streaming services, social media and websites for strategic game lovers. Since traditional league games have been suspended or cancelled, the coverage of e-sports events has appeared on television. Conclusions: Today, it can be said that the COVID-19 pandemic has exerted and continues to exert a significant negative influence on the sports market, taking into consideration both economic and social aspects. It does not concern only people who work in professional sports but also those who work in related sectors such as retail or sport services that manage leagues and events. The COVID-19 pandemic has proved to be fraught with economic consequences.