Mainichi: Japan Pro Sports Shutdown Affect: And Marathons In Japan

https://mainichi.jp/english/articles/20200513/p2g/00m/0sp/115000c

Article:

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

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.

Ideas:

Pro sports, in most industrialized or advanced economies, and even developing economies is a major industry. As such it can have an affect on many parts of an economy and society.

Its like the housing and construction industry in any economy. Housing and construction affect so many different areas/sectors of an economy and society, a shutdown in the housing industry can have huge affects, as most likely is happening globally.

But the pro sports industry can have an affect on so many different industries and sectors; advertising, television, retail, etc. and the list is limitless.

Article:

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

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

In addition to direct costs, Miyamoto's end figure of 274.7 billion yen 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.

Ideas:

Exactly! The pro sports industry even affects many businesses indirectly such as restaurants where fans/consumers might to go after a game or might go there to watch a game and eat. So even bars, sports bars and such places will be affected.

And yes, lets not forget about employees and people. Whether those directly involved in the sports industry but also those indirectly affected, whatever business or industry it is.

Also: Marathons in Japan:

http://japanrunningnews.blogspot.com/2020/06/kobe-marathon-canceled-19444-finishers.html

Participation in marathons in Japan is huge. As you can see in the list in the Japan Running News blogspot.

Marathons bring huge sums of money into a community. So the economic losses are going to be big for these cities that have decided to cancel their marathon over the virus situation.

Have a nice day and be safe out there!

© 2020, Tom Metts, all rights reserved