Sports Business : Covid19 loses $2.6billion to Japan’s professional sports market

Sports Business,Sports Business News,Japan's sports market,COVID-19

The economic cost of shutting down professional sports in Japan because of the coronavirus outbreak will amount to roughly ¥274.7 billion ($2.6 billion) by the end of June, according to a Kansai University economist .

Katsuhiro Miyamoto, a professor emeritus in theoretical economics, based his calculations on the size of the different pro sports markets in Japan. He studied the impact of canceling, postponing, or holding events behind closed doors and the subsequent loss in profit from food, drinks, merchandise and lodging.

Miyamoto estimated that from January through the end of June the lack of pro baseball will result in a loss of about ¥72 billion ($673 million), with pro soccer’s impact ringing in at ¥39 billion, sumo’s at ¥5.6 billion, pro basketball at ¥4 billion and pro golf at ¥3.6 billion.

The downturn from the absence of other pro sports, Miyamoto calculated, will come to around ¥3 billion for a total loss of ¥127.2 billion ($1.2 billion) in direct costs.

In addition to direct costs, Miyamoto’s end figure of ¥274.7 billion included the cost of indirect purchases at related businesses such as restaurants and the effect on consumption by employees of related companies.

“It seems that large organizations, teams, and clubs will manage to hold up, but I am concerned that many small organizations and clubs will take a considerable amount of time to recover,” Miyamoto commented.