Sports Teams Lose Money And Opportunity Due To COVID-18
The success of a sporting event depends upon the trucking company you choose to handle necessary deliveries to the venue. There is a wide range of sporting goods from balls to nets and protective gears like helmets. Less than truckload freight or dedicated truckload freight options are available for shipments throughout North America including cross border between Canada and the United States.
However, mass events like sports cannot occur to prevent the spread of corona virus. The $160 billion sports world has been put to halt. The ramifications of the cancellation and postponement of sports activities vary from serious financial consequences to athletes, teams, leagues and organizations to the people who work during sports events.
About $400,000 is lost by LeBron James for every game that is not played by Los Angeles Lakers. However, LeBron won’t suffer from the loss as well as the other players but what about the low-paid minor league baseball players who need money for food and rent?
Sports has always been recession-proof. It has weathered economic fallouts, terrorist’s attacks and financial crises. But corona virus has stopped sports events. Aside from economic losses, there will be opportunities lost.
There are teams and leagues with contractual provisions and insurance policies that will cover lost revenues but the impact of a lengthy stop will last long after the resumption of games. The biggest financial impact will be lost revenues from television contracts. Rough half of the $9 billion revenue that leagues make comes from media fees.
There are also potential losses from ticket sales because there are still no announcements whether tickets will be refunded or credited to future purchases. There is also a provision in NBA’s labor contract that allows teams to withhold 1% of player salaries for every game that the team misses. Moreover, teams won’t be spending for travel to hold games.
Meanwhile, delivery of goods according to schedule will depend on the trucking company you choose to work with. It is important for goods to be delivered on time while ensuring that they are safe. Specially-engineered equipment is designed to manage even the most sensitive, fragile and specialized loads including goods that require temperature control.