Live Sport Will Need To Adapt
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.
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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