Role of sports in this situation of pandemic covid-19 ? Put your views in 100 words... paragraph writing
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Answer:
The global value of the sports industry was estimated to be $471bn in 2018 – an increase of 45% since 2011 – and before coronavirus stopped play, the only trajectory seemed to be upwards. Now, every part of the sporting value chain has been affected, from athletes, teams and leagues, to the media that broadcast and cover games.
To begin, the basics. In the simplest terms, there are three main income streams for sports leagues: broadcasting (sales of media rights), commercial (sponsorship and advertising partnerships) and match day revenue (ticketing and hospitality).
Professional sports leagues are analogous to entertainment companies, where each team in a league is like a different channel. The teams have their own identities, employees and fan bases, but the overall ‘programming schedule’ (the rules of the game and the fixture list) are set by the leagues. This comparison may not please the purists, but the reality in both sports and entertainment is that the more eyeballs on the product, the more valuable it is.
The major sports are all reliant on broadcasting income, as demonstrated by revenue data from the biggest leagues over the last five years. The global value of sports media rights is around $50bn – but 60% of that is accounted for by just 10 sports leagues.
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“The key revenue generation for sports bodies is through licensing of television broadcast rights. With the stoppage in sporting events, it is likely that most sporting bodies will face financial hits. Indian cricket could be relatively better placed. Smaller countries like West Indies, Bangladesh and Sri Lanka could face challenges if their respective media contracts are not renewed,” said Manish Desai, partner in Deloitte India. Desai said sports other than cricket might find it harder to return to normal in India, because they do not have as deep financial pockets.