Hook: Have you dreamt of traveling to a beautiful place, especially a stadium, but your dream was cut in half because of Covid-19?
Statement of the problem/debate: The unfortunate pandemic has overall had multiple effects on earth, two of those effects being decreased traveling and financial losses. I will find a sport that has faced both of these issues: soccer. Since the beginning of the pandemic, lots of people have been unable to travel (within a country or overseas) due to the fear of getting infected, or they have lost their jobs and therefore they have found themselves in difficult economic situations. These problems have led to soccer getting blown by financial hits. However, there are tools that can help accomplish traveling without even having to move from your place, keeping your money saved and also bringing some income to soccer. The advanced technologies (apps and games) make possible for people to virtually travel across the world without any cost. In the meantime, an idea for the sport of soccer to generate income would be to make sponsorships and contracts with the apps.
Thesis Statement: For more than a year now, financial blows that have struck soccer have also left their mark on many other areas that in a way or another are connected to soccer, such as business, employment, traveling, etc.
Body Paragraphs
Subargument #1: The overall income loss of the most watched leagues and clubs of soccer.
Support 1: “Twenty of Europe’s biggest clubs lost more than €1bn in revenue over the past year while almost 10% has been knocked off players’ average values as the game struggles with the economic impact of the Covid-19 pandemic, according to a study by the market analyst KPMG.” (Lowe, 2021)
Support 2: “And if sports remain shut down for a total of three months (it may well be longer), sports occupations could lose a total of $12.3 billion in earnings by mid-June. That’s an average of $133.4 million in earnings every day, or $92.6K every minute.” (Burrow, 2020)
Support 3: “Instead, more recent forecasts estimate a total loss of €4 billion across 20 top leagues (rather than five) and two seasons (rather than one).” (Cole, 2020)
Subargument #2: How the absence of fans in the stands has affected their teams.
Support 1: “Whilst the full financial impact of COVID-19 is yet to be felt,” reported Deloitte ahead of the 2020-21 season, “it is anticipated that the clubs in smaller footballing countries and those in the lower leagues of larger countries will be hit the hardest. These clubs typically have a greater dependency on matchday revenues.” With nobody coming through the turnstiles, clubs are innovating ways to create revenue on matchdays.” (Cole, 2020)
Support 2: “Fans in stadiums don’t just affect box-office receipts, though that’s obviously a big driver. They also affect stadium sponsorship, hospitality and merchandise, all important revenue streams for clubs. The impression here is that the 50% figure might be on the conservative side, which would further drive down that €4 billion in lost revenue.” (Marcotti, 2020)
Support 3: “A broader, 20-team sample of European teams calculated an aggregate loss of revenue of €1bn, with an 18.5% decline in revenue at Manchester United, 12.3% at Tottenham and 7.9% at Liverpool. Liverpool’s decrease, a result of having to play behind closed doors and their early exit from the Champions League, where they were knocked out by Atlético Madrid just before lockdown, was mitigated by a 14% rise in commercial revenue.” (Lowe, 2021)
Subargument #3: There are millions of jobs that are being lost because of lack of activity.
Support 1: “The global value of the sports industry is estimated at US$756 billion annually. In the face of COVID-19, many millions of jobs are therefore at risk globally, not only for sports professionals but also for those in related retail and sporting services industries connected with leagues and events, which include travel, tourism, infrastructure, transportation, catering and media broadcasting, among others.” (United Nations, 2020)
Support 2: “The economic impact of COVID-19 on US sports has been a low blow. When every sporting event was canceled or postponed in mid-March, this surreal move impacted approximately 1.3 million sports jobs: furloughed, reduced, or erased.” (Burrow, 2020)
Support 3: “Despite showing accounting profits of nearly €200m (£178m) over the past three seasons, working capital is limited even at a big club like Liverpool who have been hugely successful on the pitch.” (Marcotti, 2020)
Subargument #4: The techniques the clubs are applying to avoid losing money.
Support 1: “Clubs and broadcasters will lean on technological solutions to deliver new types of content and diversify revenue sources. Sponsors will require more meaningful relationships with clubs and supporters to ensure they are getting their money’s worth. Again, this is likely to involve digital solutions, as big data and club websites are put to work personalizing fans’ experience (and advertising profiles).” (Cole, 2020)
Support 2: “Madrid returned a profit despite income dropping by 8% through cost-cutting measures including 10% salary cuts applied to all their players and summer sales. They did not sign anyone in the summer and while they have the biggest budget in the study it has reduced by more than €200m this season.” (Lowe, 2021)
Support 3: “Not every club is in the same boat. Some have owners who are in a position to directly inject cash or take on debt to deal with the issue, but the problem is very real and it’s felt in the transfer market. It may appear as not being terribly important because ultimately when players are bought and sold most of the money “stays in the system,” shifting from one club to another, but in fact, in accounting terms, “player trading” — and the fact that through the magic of amortization you can generate paper profits seemingly out of thin air — is hugely important to many clubs.” (Marcotti, 2020)
Conclusion: To sum up, during the last 13 months the most watched sport in the world, soccer, has experienced some major changes, mostly for worse. First come the considerable economic losses, then follows business, traveling, unemployment, players and teams’ development etc. All of these outcomes are a result of the ongoing virus.
Sources
“The Impact of COVID-19 on Sport, Physical Activity and Well-Being and Its Effects on Social Development | DISD.” United Nations, United Nations, www.un.org/development/desa/dspd/2020/05/covid-19-sport/.
“Covid-19 Impact Leaves Major European Football Clubs with €1bn Loss.” The Guardian, Guardian News and Media, 14 Jan. 2021, www.theguardian.com/football/2021/jan/14/covid-19-impact-leaves-major-european-football-clubs-with-1bn-loss.
“The Economic Impact of COVID-19 on US Sports.” Emsi, 20 July 2020, www.economicmodeling.com/2020/05/28/the-economic-impact-of-covid-19-on-us-sports-up-to-92-6k-lost-every-minute/.
Marcotti, G. (2020, September 10). Football’s economy has taken a hit from COVID-19, but it’s not as bad as first feared. Retrieved March 26, 2021, from https://www.espn.com/soccer/blog-espn-fc-united/story/4177249/footballs-economy-has-taken-a-hit-from-covid-19but-its-not-as-bad-as-first-feared
Cole. (2020). How is COVID-19 affecting the Football (Soccer) Industry? Retrieved March 13, 2021, from https://www.masterstudies.com/article/how-is-covid-19-affecting-the-football-industry/
Tilp, M., & Thaller, S. (2020, October 02). Covid-19 has Turned home advantage into Home disadvantage in the German Soccer Bundesliga. Retrieved March 19, 2021, from https://www.frontiersin.org/articles/10.3389/fspor.2020.593499/full
Latest announcement on HOW Covid-19 will affect the Premier League, EFL AND SPFL | Sky sports news. (2020, March 13). Retrieved March 20, 2021, from https://www.youtube.com/watch?v=MU5QWjRJApc