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COVID-19: Winners and Losers in the Sports Industry

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 18 June 2020.

As the world grapples with the COVID-19 pandemic, the sports industry has been severely impacted. However, amidst the challenges, some sports have emerged as winners, leveraging digital platforms to engage fans and maintain their presence.

One such example is the NBA, which has successfully mobilized a flood of game footage, talk shows, and Q&A sessions with players. The league has also capitalized on Netflix's release of Michael Jordan's "The Last Dance" series, a big hit with live sports-starved fans.

"I think the NBA probably does it the best and that's why they've coped, because they don't rely on that one model -- they're not relying on ticket sales," said Melissa Johnson Morgan, associate professor at the University of Southern Queensland's School of Management and Enterprise.

On the other hand, some sports have struggled to engage fans during the pandemic. Johnson Morgan pointed out that Australia's favourite competitions were among those that failed to connect with fans, possibly due to administrators being preoccupied with restarting play.

"I think they'll have to be more immersive. Consumers have realised that they can entertain themselves without leaving their house," she said.

Italian football club Juventus has also taken steps to diversify its revenue streams, creating a retail division and ramping up branding. The club's managing director for Asia-Pacific, Federico Palomba, said that the COVID-19 pandemic has accelerated the trend towards 24-hour, on-demand entertainment, forcing sports to look at more sophisticated ways to attract fans.

"Hopefully this will be a shock that will help football to become a more efficient industry," Palomba said. "I think that we as an industry could do better."

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