The four major American sports, namely the NBA, NFL, NHL, and MLB evidently took a massive hit due to the global COVID-19 pandemic. A year ago, when the entire country came to an abrupt halt, Forbes reportedly estimated significant financial losses for these major sports.
According to Forbes’ most recent report, the impact of the global pandemic on their financial books proved to be much worse. Initially estimating the losses to be at around $5 billion, they ended up nearly triple the amount. The value of sports teams likewise took a hit.
Via Justin Birnbaum of Forbes:
Even with the return of the NHL and NBA in their respective “bubbles,” MLB’s shortened season and months of mostly fan-free NFL Sundays, the revenue losses for the NCAA and the four major U.S. sports leagues have now hit at least $14.1 billion so far, according to Forbes estimates. Even the value of sports teams, one of the most reliable long-term investments for billionaires, began to creak from the strain. NHL franchise values fell 2% on average, according to a Forbes analysis published in December, the first drop in two decades. NBA values rose just 4% on average, the smallest increase since 2010.
This isn’t very shocking considering all the revenue streams these major sports lost when they did resume their respective seasons. Obviously, the absence of paying fans, as well as everything that goes with it has severely affected their potential income.
On the one hand, the report sheds positivity for recovery in 2021, as the economy begins to open up with the emergence of vaccines. The NFL saw a live crowd attend the Super Bowl, while the NBA is slowly beginning to bring fans into arenas.
Nevertheless, the coronavirus is still there and with learnings still rolling out on its effects, it might be best to continue exercising caution and safety.
Follow Us
Subscribe