Saturday, May 2, 2020

Don't Forget About Everybody Else

As we begin to emerge from the nightmare that has been the past two months, the sports leagues are all trying to come up with ways to resume their seasons.  It seems highly unlikely any government officials anywhere will let those games take place in front of spectators.  Large-scale events are pretty low on their priority lists at the moment and, unfortunately, don't seem likely anytime soon.

Everyone seems to have accepted that reality, at least in the short term.  Simply getting back on the field is far more important, and that's a sacrifice they're willing to make if that's what it takes to start playing again.  Games in empty arenas/stadiums beats no games at all, and playing in front of no fans at all makes more sense than limiting attendance, which would require the manpower to enforce it.

Obviously there's plenty of financial incentive for sports to resume.  ESPN figured that the shutdown will cost at least $12 billion, and that number is only going to go up the longer they're out of action.  That's probably the biggest reason why the NHL and NBA are both talking about next season in December--when they expect to be able to play in front of fans for most, if not all, of the season.  (More on the NBA's plans in a future post.)

They want to recoup as much money as they can, which is why the seasons haven't been cancelled.  Since broadcast contracts are generally backloaded, they want to preserve as much playoff inventory as possible.  Yes, there are clauses in those deals that cover things like this and allow the leagues to recoup some of that money, but not all of it.  And the networks are just as desperate to have sports come back so that they actually have something to show other than classic games.

The players have all agreed to different provisions that cover the various possible scenarios.  The NBA, for example, has a force majeure clause in its CBA that holds a percentage of the players' salaries in escrow.  But, for the most part, we're talking about millionaire players and billionaire owners here.  They'll take a hit, but they'll all be fine financially.

It's not just the players and owners who are impacted by the shutdown, though.  There are those forgotten groups who make up a vast majority of the workforce on game days.  And they're the ones who are suffering and will continue suffering as long as venues remain closed to fans.

Consider the sheer number of people required to run a sporting event.  All the team/league personnel and everyone associated with the broadcast, as well as the photographers and other media members only make up a very small portion of that number.  You've also got ticket takers, security, parking, maintenance, guest relations, ushers, concessions, merchandise, the team store, cooks, servers/bartenders and I'm sure there are other areas I'm forgetting.  Plus the game operations folks. 

A vast majority of those people rely on the extra income they make from working the team's games, as well as concerts and any other events at the venue.  Likewise, all the policemen, firemen and EMTs on hand are getting overtime pay.  None of these people has worked an event in two months, and who knows when they will again?  So, that's extra money they may rely on that they haven't gotten and won't be getting.

Even if venues reopen for behind-closed-doors games, the number of outside personnel required will be significantly less.  And I mean significantly.  It'll be maybe 10 percent of a typical game day crew, if not less.  There won't be tickets, so you won't need ticket takers.  And with nobody in the stands, you obviously don't need ushers or concessions people.  You'd still need some people for security, parking and maintenance, but far fewer than usual.

That's just people who work directly at the venue.  Don't forget about the nearby hotels, bars, restaurants, buses and car services, as well as little mom & pop shops and people who let fans park on their lawn.  No games means fans aren't flooding those businesses, either.  And for some, that lost revenue could be devastating.  (The potential economic fallout on those small communities that are so dependent on college football are a big concern come fall.)

For so many, the loss of sports is about much more than their favorite team not playing.  It's far more serious than that.  Especially for those hourly workers who are struggling to make ends meet and work at the stadium as a second- or third-job, not having games deprives them of extra income that may be necessary for their financial survival.

There were only a handful of regular season NBA and NHL games remaining when those seasons were suspended, so the people with those side jobs in those arenas at least got to work most of the season.  Baseball season hadn't started yet, though.  So, for the thousands of game workers at Yankee Stadium or Wrigley Field or Fenway Park didn't get to work any.  And they might not all season!  So, they went from 81 games' worth of extra income to zero games' worth!

Some players, teams and leagues have stepped up, done the right thing, and have committed to take care of their game workers.  That's a start, but it certainly won't be enough to make up the difference financially.  Especially since their situation may have changed over the past six weeks.  Then throw on top of that the additional money they'll be losing with no playoff games.  Now imagine how much worse it'll be if this extends into the start of next season.

Things will get back to normal eventually (and I'm talking actual normal, not the "new normal" we've heard way too much about).  No one knows when that'll be though!  It hasn't even been two months, and that has felt like forever!  This won't go on indefinitely, but that uncertainty over when is a big part of the problem.  Because things won't get any easier between now and then.  And when things do go back to normal, there's no guarantee that all of these jobs will still be there.  Or that the same people will be able to fill them.

Shutting everything down was necessary and unavoidable.  Nobody's saying it wasn't.  But the toll that it has taken is much more far-reaching than anybody anticipated.  And the fact that bans on large gatherings will likely be among the last restrictions to be lifted, meaning games with fans are probably a long ways off, is only going to make that toll greater.

So, while some people might think that the return of sports shouldn't be a priority, the fact is the opposite is true.  Large sporting venues are economic drivers.  And the people who are suffering the most because they're closed aren't the players or owners.  It's the thousands of stadium workers who make everything else go...and are losing more and more money the longer this continues.

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