In addition to fewer games, the lack of fans is also going to have a significant economic injury for the area. Channel 12 had this report about the loss of jobs that is resulting from the COVID-shortened baseball season and lack of fans at Brewers games.
Hundreds of seasonal workers are without jobs as baseball games begin.In addition to the Brewers' workers that are affected, as owners of a 20-game pack, my wife and I certainly aren't heading to Milwaukee nearly as much as we would in a typical Summer. That means we aren't spending money in bars and restaurants there, and other places that we might visit (and yes, the flip side is that we are spending more money at home....if COVID wasn't locking us down anyway).
"It's gonna cost me over $10,000 in lost income," beer vendor Ryan Strnad said.
It's the first season in more than 30 years that he's unable to sell to fans.
"It will break my heart to watch baseball, without having a chance to vend in it to be very frank with you, and to see those empty seats," he said.
Wisconsin's 2 main football teams are also going to have to deal with the fallout from COVID-19 (if they play at all this Fall). And it is comes off the heels of a strong 2019 both on and off the field for both the Packers are Badgers. The Pack just revealed their most recent numbers this week, and it should allow them to weather whatever fiscal problems tyhat come in the 2020 season.
The Green Bay Packers reported record revenue of $506.9 million for last year and indicated they might get through this pandemic-stricken year without dipping into their corporate reserve fund.That resulted in the team pulling an operational profit of more than $70 million last year. And given that NFL teams make more of their money from broadcasts and other team-owned businesses, a largely-empty Lambeau Field doesn't mean that the Pack goes broke.
The NFL's smallest-market team, and the only one that reports its finances, passed the half-billion-dollar mark for the first time in the fiscal year that ended in March, just as the coronavirus pandemic shut down much of the country.
The Packers reported a 6.1% increase in total revenue, driven primarily by a $21.7 million, or 7.9%, improvement in national — i.e., television — revenue. Local revenue increased $7.3 million, or 3.6%, with increases in ticket prices, game-day sponsorships and Packers Pro Shop sales. The Titletown District also began to contribute to the bottom line.
Packers President and CEO Mark Murphy said between 10,000 and 12,000 fans might be allowed into games this season because of coronavirus pandemic safety measures. With national revenue covering player costs, that would be enough fans to cover other expenses.
"I think we are safely north of what the break-even point is, just based on the current conversation of where the number of fans will be," said Paul Baniel, vice president of finance and administration.
Get used to this image
But Wisconsin's other major football team might not be able to weather the oddness of the COVID world as easily. Badger Athletics relies heavily on season ticket sales to UW football and related football revenue, which subsidizes many of its other programs. Which makes the prospect of a conference-only 2020 season in front of limited-at-best crowds one that will put a major dent into the entire UW AD.
Even in what could be a best-case scenario given the current landscape, the University of Wisconsin athletic department is anticipating a revenue loss of at least $60 million for the 2020-21 school year because of the COVID-19 pandemic.By the way, any cuts that the Athletic Department would have to take on would be on top of any reductions UW-Madison might take on as part of Gov Evers' request of $250 million for Fiscal Year 2021. That's because the Athletic Department is self-supporting, and outside the realm of the Wisconsin state budget.
If the financially lucrative football season is canceled entirely, the revenue impact could be greater than $100 million, according to UW.
Responding to questions about finances, an athletic department spokesperson provided written statements saying that it is “highly likely” that UW will have to use a reserve fund to cover losses this fiscal year.
In a scenario being modeled by the department in which the Badgers football team plays the conference-only schedule now on the table and all other UW sports continue, revenues are projected to decline by $60 million to $70 million in an operating budget that calls for spending about $139 million.
And much like we see with Brewers bars and other Milwaukee businesses that benefit from MLB, there are many restaurants, bars, and lodging facilities around Green Bay and Madison that will be hurt due to a lack of people traveling to Badger and Packer games this Fall. In businesses that are already being drilled in the COVID world, that could be a fatal blow that leads to more closings and job losses, if there isn't a bailout for those industries.
Yes, it'll be nice to see the Brewers back on the field this weekend. But just because the games are being played, it doesn't mean the business of sports in Wisconsin isn't going to take a significant hit this Summer.
Baseball is back! The NFL is on its way! So why am I not excited? Maybe because, as you say, most everyday folks with sports-related jobs will not benefit while the billionaire owners reap the profits. Maybe because it’s only a matter of time before the players start getting infected. Maybe because watching sports during a pandemic is sort of like listening to the orchestra play soothing music on the deck of the Titanic.
ReplyDeleteOn a positive note, my family and I have been very lucky so far, both health- and job-wise. But we take nothing for granted. Obviously this country needs a drastic, sweeping change in leadership this November. Let’s see if we make it that far.