Economies across the globe suffered from the effects of coronavirus in education, healthcare, finance, and other commercial and social activities. One industry that seemed to have taken a big hit from the pandemic is professional sports. With social distancing becoming the universal law, all kinds of activities involving any physical contact were stopped immediately.
There is an entire ecosystem involved in this and a lot of irreparable damage has been done by the virus. While we cannot undo that, we can analyze the situation to make better decisions to return to normality. Keep reading to find out more about how the pandemic created a systematic effect on all the industries tied to the sports sector.
Impact on Sports Stakeholders
We are all aware of how sports organizations are trying to resume sporting activities and doing so in the current situation is quite challenging. The following things need to be dealt with to resume sporting activities with the pandemic still around.
• Managing the workforce is the most obvious problem that organizations must face. Equipping people with the tools that allow them to work in similar conditions in the future requires a major investment in both infrastructure and technology. The amount of planning needed to make sure the work quality remains the same even if someone is working remotely means careful consideration of each tool that you are offered.
• Changing the model of work for your entire business may be necessary to adapt to the new conditions. This is something that you simply cannot overlook in the sports niche and changes must be made where necessary. This could also end up having a severe impact on your organization’s cash flow and would require long-term planning and forecasting.
• Partner relations are also going to take a big hit from the pandemic. Companies will be required to create new SOPs when dealing with vendors, partners, broadcasters, sponsors, etc. While the health aspect may be taking the most importance here, you will still need to consider the impact these changes would have from a legal and financial perspective.
• Portfolio management is another challenge that almost all sports businesses would have to deal with. With an overall drop in demand for goods and services, they will need to figure out their approach regarding their products/services portfolio. Will they be expanding to other types of sports to diversify the risk? Or is it finally time for them to start investing in eSports events? The answers to these questions would essentially determine the future of the company.
• Fanbase management is another unique problem that sports organizations and businesses have to deal with. With there being no real chance of stepping foot in the arena stands for another year or so, how will the fans react? What kind of impact will it have on the business and how to deal with any problems that may occur? A prevalent solution that some sports organizers are currently using include virtual relationship building with one-to-one sessions between fans and players.
• Venue ownership will also be a huge challenge during this time with sporting events and ticketing revenues coming to a grinding halt. The owners of these venues will need to figure out other ways to utilize their gigantic properties. How will they manage expenses if the sporting events happen without spectators? What could be other possible uses of the arena to make it profitable?
Challenges for Sports Businesses
There will be several interesting and grave challenges to overcome for businesses whose income relies solely on the sporting events being held and popular. The strain of each factor that they must consider will undoubtedly be felt and we all must know what they are.
• The most obvious factor to consider would be asking your workforce to come to work in an environment that could potentially be crowded. With person-to-person transfer being the main source of the spread of this virus, having too many people around would make your employees uncomfortable and possibly unwilling to work as well.
• Asking athletes and fans alike to come to the arenas for sporting events is also a major challenge. With the threat of the virus spreading being constantly present, both the athletes and the spectators would feel reluctant to enter the field and would rather spend their time at home with loved ones. Changing their minds would certainly be a nasty challenge to deal with.
• Reeling back from the financial loss caused by lockdowns and lack of activity would also be a challenge for many businesses. With so much money lost by many, would they even be able to rise back up again?
• Reconnecting with partners after such long breaks would also lead to uncomfortable situations with rusty communication and awkwardness. This can potentially lead to revenue loss in the real world and avoiding that is an absolute must.
• Managing the logistics of sporting events would also be quite tricky with so many countries going through difficult economic conditions. The negative impact on each industry would be quite visible and getting the logistics fully operational could take a long time.
• Dealing with the legal ramifications of holding such events during the pandemic would also complicate things further. Each country has its own rules and regulations according to their local situation, which could severely impact the flow of events at every level.
How to Evolve in This Situation
As a sports organization, you need to ensure that you face the challenges faced by the sports industry with a positive mindset. The current situation could easily be described as a crisis and to get out of such a situation, you need to respond effectively, recover your losses, and learn to thrive in the new circumstances. Here are a few things you can add to your to-do list right away!
• Prepare for more outbreaks. There is no doubting the fact that vaccinating the entire world would take a long time, even with breakthroughs happening at blazing speeds. Therefore, you need to make sure that you take every precaution to avoid contracting the virus and have contingencies in place as well.
• Plan before you act. The economic and social situation is no longer what it used to be before the pandemic. You need to take a long hard look at where your business is standing currently and how you can steer it towards success in the current situation.
• Go digital. Utilize the power of online platforms to maximize your reach. Social media is dominating the current marketing industry, so you should utilize it for your organization’s publicity.
• Use the situation as a chance to evolve. Think of the pandemic as a blessing, one that is about to jumpstart your next big idea. Think about how you can evolve your services and then go ahead and do so immediately.
Sports play a key role in our societal constructs and we need to take the steps we can to save them. As a business owner, you need to adapt to the changing situation and present yourself to provide convenience to your partners and customers. If you would like to add to this then please feel free to share a guest post with a strong dofollow on our Portal e-B2B.org.