Economic crisis in professional sport – EconomyMorning

Sport is a spectacle but also a heavyweight in the economy. The French clubs are hit hard by the health crisis which imposed in the spring the sudden end of the various championships and the closed door in the stadiums since the resumption.

The world of sport has suffered an unprecedented shock, which is how the year that has just passed could be summed up. While he expected a semblance of normality in September with the gradual return of spectators to the stadiums, the resurgence of the virus has dampened all hopes. Even the activity related to football betting has slowed down …

The sports that depend the most on ticketing such as rugby, basketball, volleyball or handball are the most affected. The only salvation is to have a big TV contract that ensures the economic model while playing in empty stadiums …

The weak are in danger of disappearing

Unlike other European football championships, French football is on the brink for two reasons. First, the hefty broadcast contract the League signed with Mediapro went up in smoke. Secondly, the closed door which deprives the clubs of the ticket office and the ancillary receipts.

The clubs which already had difficulties before the crisis find themselves even worse off. The Girondins de Bordeaux, in structural deficit for several years, had to resort to a pan of voluntary departures in order to reorganize the club.

Each sport has different situations. In rugby, clubs like Toulouse, La Rochelle or Clermont depend heavily on ticketing, while the survival of Racing depends on the support of the shareholder.

Stade Toulousain, which is however the most capped rugby club in France, has its accounts in the red. In addition, due to the British variant, he was temporarily deprived of the European Cup.

The economic situation of sports clubs could be summed up in this formula: “when the fat ones lose weight, the thin ones die”. The taboo of lowering player salaries is now broken.

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