This commentary is part of a series on how some sectors in Singapore are hit by the Covid-19 crisis and what can be done to help businesses ride through it. Look out for upcoming pieces in the series.

The Covid-19 pandemic has brought the world of sports as we know it to a complete standstill.

Empty stadiums, the cancellation and postponement of events have been the order of the day ever since the pandemic broke out.

Here, the sports circuit has gone into a forced hiatus with the suspension of the Singapore Premier League, the postponement of the Singapore Rugby Sevens from April to October and the cancellation of the Singapore Badminton Open 2020, among others.

With the circuit breaker in place until June 1, and a quick resumption of mass sporting activities and events unlikely any time soon, the sports fraternity must brace itself for an unprecedented disruption.

No one can tell how long this crisis could go on and what will be the new norm for Singapore’s sports sector after Covid-19.

But it is important for the many arms of the sports industry in Singapore to start thinking of the implications of Covid-19 and working together on a recovery plan.

For its part, the Government has announced a new S$2 million grant to help the sports industry create digital content and virtual activities to help Singaporeans stay active at home, among some initiatives. 

Employers in the sports sector, including the National Sports Associations (NSAs) will also be eligible for the enhanced Job Support Scheme announced by Deputy Prime Minister Heng Swee Keat while there will also be support for sports freelancers like coaches who intend to continue their education during this period. 

Sport Singapore also announced that there would be 500 temporary jobs made available.

The question for the sports sector: Is this enough to reinvigorate the sector and to steer its recovery thereafter.

First, let us consider how Covid-19 will affect the finances of NSAs and sports groups in general.

The Singapore Swimming Association (SSA), an NSA, collected more than S$1.8 million in event and sponsorship revenue for financial year 2018. According to its financial report, this is about 20 per cent of its annual revenue.

If the postponed events cannot be held this year for whatever reason, then the SSA will likely lose its income from those cancelled events.

It is also highly unlikely that any NSAs took out any prior cancellation or postponement insurance on their events and moving forward, this needs to be a norm and not an exception.

If safe distancing measures are instituted on a longer term basis, then this will inevitably mean that there will be fewer fans at venues and event owners will suffer in terms of gate receipts.

To stay afloat, either fans may need to pay more or the Government may need to allocate more grants to the NSAs in the interim as the market finds its equilibrium. This is also because NSAs will also lose out of fundraising initiatives like golf events or dinners, and will surely suffer in terms of direct donations as a result of the downturn.

Event owners or sports property owners who rely on sponsorship dollars as a source of revenue will also be impacted.

It is plausible that with the slowdown in the economy as a result of the pandemic, businesses will tighten their belts a little more and possibly renegotiate sponsorships, which will only lead to a reduction of income for sports associations and event owners.

The economic damage to the sports industry will have knock-on effects on the broader economy, as businesses which provide peripheral services like event management, public relations services and others will also take a hit.

HOW ABOUT FITNESS CENTRES AND SPORTS FACILITIES?  

Gymnasiums, fitness centres and private sports facilities which provide spaces for members of the public to engage in sports activities like indoor football will inevitably suffer losses as a result of any further distancing orders.

For these business owners, it will be imperative to think about how their businesses and establishments can live in a post-Covid-19 world if safe distancing becomes the norm.

Limiting people within the premises will only mean that revenues will continue to be affected in the absence of any kind of complete business overhaul.

They will likely have to re-examine their members’ fees or cost of usage, and it is almost inevitable that members of the public may have to end up paying more to play.

How will this then impact sports participation, and how do we provide support to these facilities so that they can continue providing the services which help keep Singapore fit and healthy especially if they do not fall under the ambit of support programmes already announced by the Government?

TAPPING TECHNOLOGY TO ENGAGE AUDIENCES

In crisis, there is opportunity.

If venues cannot be filled to capacity, then it becomes important for event owners and venue operators to find new ways to engage sports fans.

More than just the usual broadcast through the e-platforms like Facebook and YouTube or television, event owners need to look at the benefits of new mobile broadcast technology with the support of tech giants, all with the idea of improving the offerings for fans if there’s a prolonged period of safe distancing.

For example, the National Basketball Association in the United States has announced a new partnership with Microsoft which will help stream its content directly to consumers through an app which will personalise how a consumer can view its content, and then be driven to other offerings at the touch of the screen.

What this means is that sports asset owners will be able to reach out to the consumer directly.

This will not only eliminate the escalated costs associated with broadcast rights fees, but it allows the asset owners to monetise and reach out to their fan base directly, at possibly a lower cost for the sports consumer.

If there is one thing which I hope the industry can learn from Covid-19, it is that there is an urgent need to reinvent the sector and explore new possibilities.

The Government could consider extending the grant to deliver sports content to such sports sector organisations and NSAs which are keen to build up their sports content delivery abilities, apart from what has been announced.

Likewise, the world of e-sports which was already on the ascendancy prior to the pandemic, has suddenly been thrust right into the centre of living rooms, mobile phones and laptops as people stay home and look for their sports fix.

Formula 1 announced the launch of an e-sports Virtual Grand Prix Series which had some F1 drivers like Nico Hulkenberg and Lando Norris participating.

The Singapore-based Legion of Racers, a simulated racing league with a regional online league championship, will continue its championship rounds as scheduled as participants can participate right in the comfort of their own homes.

Now, more than ever, the growth trajectory for e-sports in this region may be exponential, as brands look towards e-sports and technology as a means to expand their brand exposure.

What Covid-19 has certainly proven is that brand owners who rely on sports for outreach also need to diversify their portfolio of assets.

The sports industry needs to get itself organised and work together on a grand plan for recovery through a multi-agency approach cutting across Government, the corporate sector and the NSAs — which are non-profits — and it has to start now.

We owe it to our athletes, and to the industry. 

ABOUT THE AUTHOR:

Jose Raymond is a former sports journalist who has served in various roles in the sports sector including as vice-president of Singapore Swimming Association and founding vice-chairman of the Chiam See Tong Sports Fund.  He is also founder of consultancy firm SW Singapore I Malaysia.