The coronavirus has shut down the sports world in the United States, and it is set to have massive financial impacts on casinos and sportsbooks from around the world. Not only will the sportsbooks be affected by the major shutdown of sports, but sports leagues across the country will be impacted as well.
Here is a look at the potential financial impact on sports leagues based on games and key tournaments being shut down around the country.
National Basketball Association
The NBA was the first league to suspend their season after Utah Jazz center Rudy Gobert tested positive for the disease. While the NBA could lose a significant amount of money due to games being canceled, the biggest loss will come in the form of television contracts.
The NBA generates more than $4 billion in media and television revenue each year, and companies aren’t going to pay if there are no games on the schedule. The NBA is also set to lose out on close to 20 percent of their season if they are not able to resume play.
The loss of revenue from these games could cost the league between $150 to $200 million if the games are not resumed.
National Hockey League
While the NHL does not generate as much money as the NBA, they are still set to lose out on a ton of money. Financial experts believe that NHL teams generate between $1.5 to $3 million per home game, and teams could still have up to 10 home games remaining on their schedule.
NHL teams are set to pay employees up to $200,000 for every game, meaning that they will still rake in more than $1 million with each game. Teams could be looking at forfeiting somewhere close to $17 million if the league is not resumed at some point by the summer of 2020.
The NCAA has decided to cancel spring sports for the remainder of the year, and that includes those championship events. The major blow to the NCAA came when the 2020 March Madness Tournaments were canceled. The Men’s Basketball Tournament was set to bring in over 75 percent of the entire revenue of the NCAA during the 2019-20 year, and that money will not be made up.
Financial experts have estimated that the canceling of the NCAA Tournament will cost the organization over $1 billion in lost television revenue and ticket sales.
Major League Baseball
The 2020 Major League Baseball season had yet to begin when the coronavirus forced the suspension. The economic impact could be devastating for the league if the entire season is not made up. Minor League Baseball players will not be paid after April 1, and MLB Players could accrue a full year of service time without playing a single game.
The Los Angeles Times is reporting that the Los Angeles Dodgers could lose close to $450 million if the season is canceled. The New York Yankees lost out on over $15 million by missing out on Opening Day, and that number will not be made up.