Justin Andrew Ehrlich, Shankar Ghimire, Maroula Khraiche and Mian Farrukh Raza
The purpose of this paper is to analyze how the coronavirus disease 2019 (COVID-19) countermeasures will affect the financing of the North American leagues. In particular, we…
Abstract
Purpose
The purpose of this paper is to analyze how the coronavirus disease 2019 (COVID-19) countermeasures will affect the financing of the North American leagues. In particular, we focus on the missed revenue from gate receipts for the Big Four leagues.
Design/methodology/approach
The authors forecast the 2020 revenue for each of the four major leagues under two scenarios: (1) expected revenue under the normal conditions of fans in attendance and (2) expected revenues in the absence of fans due to the countermeasures in place. Then, the authors calculate the loss in gate receipts as a difference in the revenue under fans and no-fans scenarios.
Findings
Based on the current estimates, the combined financial loss of the clubs from NFL, MLB, NBA and NHL is expected to be above 6.8bn dollars in gate receipts alone.
Practical implications
The findings are useful to the league management to prepare for the suboptimal financial situation.
Originality/value
To the best of our knowledge, this is the first study that explores the effect of the COVID-19 pandemic across the major league sports leagues in North America.
Details
Keywords
Maroula Khraiche and Abhinav Alakshendra
In the last 50 years, every Olympics has experienced a major cost overrun. This paper explores the reasons for this cost underestimation and looks into the occurrence of the…
Abstract
Purpose
In the last 50 years, every Olympics has experienced a major cost overrun. This paper explores the reasons for this cost underestimation and looks into the occurrence of the winner's curse. We also forecast the spending pattern of future host cities. Finally, we discuss the role of the International Olympic Committee in making the Olympic Games more efficient and sustainable.
Design/methodology/approach
The review of literature on the topic of constant cost overrun in the Olympic Games is surprisingly very thin. We comprehensively review the existing literature to understand the scholarship in this area. This paper also produces future cost trends for the host cities.
Findings
We argue that cost underestimation is resulting from the outdated bid process which encourages spectacle over efficiency. A no-bid environment is more efficient and allows the host city to negotiate effectively with the International Olympic Committee. The Los Angeles Games of 1984 was profitable and has shown reusing the infrastructure can save a lot of money which could help make the Olympic Games economically sustainable.
Originality/value
This paper adds to the existing knowledge on the cost overrun aspect of Olympics financing. We also forecast the cost trends of hosting future Olympics.