Live Sport Will Need To Adapt

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Hey JessPorts fans

Social distancing has forced live sport to rethink their business model; we can no longer pack out stadiums, go down to the local sports bar and cheer on your favourite teams and the culture of live sports have been disrupted and forced into homes just like many businesses. This multi-billion dollar industry has exploded with the help of cheap money, TV rights, sponsorships and of course the amount of undivided attention of eyeballs it brings.

This is the only reason clubs are pumped full of cash because brands know you'll sit there for an hour or 10 fixated on the screen and if their brand logo is somewhere there it's worth it to them. Exposing your brand to millions of religious fans who would support just about anything their club is affiliated with and by the support I mean handing over their paycheque.

While live sport from football, to basketball and everything in between continue to bring web traffic and TV watching time, merchandise sales and fan tours as well revenue will continue to fund the lavish lifestyles of those at the top of this Ponzi.

Live sport is a product in decline

Let's face it if all sports stars were paid 50% less they wouldn't perform 50% worse and paying them 30% more isn't going to make them play any better. The human capability has its limitations, and paying anything more is just overpaying as you get diminishing returns for your capital.

Live sport and particular club sport was one of passion and affiliation and over the years its been commodified and watered down to appeal to as many people as possible to gain more user base and more revenue share. Still, the truth is, its a product in decline. As the pay-TV model dies with the boomers, the new generation focuses on other experiences like streaming, eSports, cryptocurrency and other things that occupy their time.

While live sport will do pretty well, it's decline will be accelerated by what has happened this year. It's by no means going away, but I cannot see it getting any bigger, especially as they continue to keep bums out of seats for the foreseeable future.

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Accelerating trends

Don't get me wrong Sport is not going anywhere; there is still more than enough of a fan base to see it continue; however, some parts of it may not. You see most of the income in football is heavily slanted towards top leagues and the "feeder" leagues the semi-pros, and the like that allow you to see the relative prestige of the main leagues don't see much of that capital.

They still rely on bums in seats and have smaller fan bases to draw capital from so leagues will see plenty of teams call time on business and consolidation will eventually happen. This will push a lot of talent and potential talent out of the grass routes and semi-pro pool and make it even harder for new teams and players to break through if they do not have an affiliation with the elite clubs.

Cutting back on costs

Elite Sports clubs and players have been overpaid for more than a decade for what they offer and now its time to ring in the costs. The product will need to be fine-tuned and refined, and new revenue models will have to come into play to balance, keeping people entertained and competing with alternative forms of entertainment.

The days of play transfers costing as much as a countries GDP was crazy, and I for one think it is time that sport had time to reflect on where it was going as a medium of entertainment.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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18 comments
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Talk about Covid's impact on sports, the long the bums are prevented from filling up the empty seats, the likelier some clubs liquidate...

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Of that I am sure, I know the EFL already asked the EPL to fund them for this year and I don't know how long that lifeline will be there as well as other countries where they can't subsidise their lower leagues, we may not see just clubs go bust but entire leagues too

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Well, it's one of the two major columns that keep civilization, Bread and Circuses. Not going anywhere.

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Yes and the circus that keeps the most people distracted will remain, and get the most funding, but that doesn't mean the product will be as good without feeder leagues the relative strength of all leagues will lower

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That is true, mate, sorry for oversimplifying it. I was not being serious enough. The truth is, in countries like mine even top league clubs are split into well-funded, not-funded-enough, and facing-bankruptcy.

Lower leagues are mostly amateurs except for some new oligarch-funded club that starts there by default, etc.

Sports is underfunded here in general. It is also a scheme that is top-heavy worldwide. Except for countries that felt fine enough financially as of late. And we'll see where it all goes.

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Sadly that is the state of sport now, the overly commercialised, the project for the rich and then the rest lol! I do still watch a bit of football, but for me sport has lost a lot of its appeal over the years

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Hehe, I guess I am a Jessie ;)

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Covid19 has changed a lot... the many sports were without the studio audience..
Even IPL - Cricket matches were planned and executed out of India...

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I'm pretty sure the IPL will keep going there's far too much of a TV fan base for it to die, even with no people in the arenas.

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Indeed, covid-19 has changed a lot including the aspect of sports but we hope it gets back to normal although it seems it will take a while and may never be the same.

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I wouldn't want it to get back to normal, previously it was going in a direction I didn't like in any case and it become too overcommercialised. I'd like to see it go back to being more about sport and less about pushing ads and political agendas

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i am really curious as to what the sports industry will think to uplift the genre! To tell you the truth i am not so much into watching sports, or most of them to be exact, i finding it pretty boring, although i have been to stadiums and such!

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I think they're going to do more online things like pay per view live streaming, so you pay for the games you want to see, more like sport on demand. I also think we'll see collaboration with eSports and we might also see break away leagues where its only elite teams playing each other

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I also think we'll see collaboration with eSports and we might also see break away leagues where its only elite teams playing each other

that one is quite the idea i dare to say!

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