SINCE mid-March, sports in Malaysia and everywhere else have come to a standstill, as the coronavirus ravages many different aspects of our lives. At this time of the year, we should have witnessed the historic moment of Liverpool FC ending their 30 years wait for a premiership title.
Instead, the Premier League is suspended and uncertainly looms over the fate of this season’s competition. Across the globe, many other major sporting events are experiencing similar situations, either suspended or called off.
While in the past, sports have been affected by major historical events such as World War I and World War II, the impact was not as massive as it is now, particularly if we are to look at it based on the economic perspectives. The financial loss amounted from the suspension and cancellation of sporting events due to the coronavirus pandemic is enormous. For example, the decision to postpone the Tokyo 2020 Olympics comes with a hefty price.
According to media reports, the cost stands at US$12 billion though some argue that it is much higher. Postponing the Olympics to next year would not only increase expenses and impact Japan’s economy as the host nation, but it also affects other stakeholders, including the International Olympic Committee (IOC), media, sponsors, sporting brands, participating countries and the athletes.
Similarly, in Malaysia, the suspension of sporting events, including the Malaysian Football League (MFL), resulted in major financial implications. Over the last few weeks, managements and players have been embroiled in debates over the proposal to impose salary cuts due to the situation. This is without doubt difficult to the professional players who play football for their livelihoods. However, such measure is unavoidable in these hard times.
Sports organisations’ sources of income are basically based on media broadcasting rights, revenue from ticket sales, branded merchandise, advertising and sponsorship. In the Malaysian context, state and federal government funding are also included as part of many sports’ organisations’ sources of income.
Currently, ticket sales revenue is not feasible due to the suspension of sports events. Broadcast of live sports that usually generates huge revenue is also affected. Nevertheless, sports organisations should continue working on other sources, including branded merchandise sales, sponsorship and advertising as these are integral to their survival.
In 2018, I have underlined the importance of branding in sports. At this time, the “marketing of sports” and “marketing through sports” activities that aim to promote sports as well as commercial brands should continue. However, these must be done carefully and with high sensitivity, considering the war on coronavirus.
One prime example is Nike, a global sporting powerhouse brand that has come up with the “Play Inside, Play for the World” campaign to promote social distancing on social media. The campaign successfully engages sports personalities and the public alike to do their part by staying at home while maintaining active lifestyles.
In the present situation, sports organisations do not have other options, but to start working on it strategically. In the last few years we have witnessed the on and off the field success of Johor Darul Ta’zim (JDT). Their sports branding initiatives are admirable and exemplary, providing the path for other sports organisations in the country to emulate. During the MFL suspension, JDT strategically use social media to engage their fans.
The club actively share various types of media content including short videos featuring the club’s star players performing training routines from home, a sneak peek inside the football club, throwback moments and public service announcement (PSA) related to the pandemic. It should be noted that fan engagement is a vital consideration for sports organisations to attain sponsorship and advertising opportunities.
In short, creating strong brand is key to every sport organisation survival. Hence, those within the sporting fraternity should seriously take into consideration of branding and strategies to navigate the challenges posed by the coronavirus. Sport organisations should be prepared to fight a long battle for survival even after the pandemic has ended.
History has shown that sports took some time to rise again during the post-war period. Hence, if the right measure is not taken, it is not impossible that sports organisations will find it difficult to stay alive.
The writer is the Dean of the School of Communication, Universiti Sains Malaysia (USM). He occasionally writes on sports communication.