Andrew Cuomo, Governor of New York announced On Wednesday, sports arenas with more than 10,000 seats could accommodate fans with a capacity of up to 10%, provided the COVID-19 guidelines were followed and the participants had negative test results.
It’s a nice start, but Madison Square Garden, with a few thousand people, is still almost empty.
Especially for a company that pays teams to showcase their brand in arenas and stadiums.
Peter Laatz, global director of sponsorship consultancy IEG, said sponsorship for sports and entertainment in the United States is around $ 26 billion a year. And what was paid for before the pandemic isn’t fully delivered because of all those empty spaces.
“We are currently facing a $ 14 billion gap that brands and real estate must agree on how to reconcile,” he said. “And it’s not an easy thing.”
He said the teams are trying to keep their contracts with brands by, for example, putting logos in places they haven’t been before so that they can at least be seen on TV.
The New York Islanders ice hockey team now has a few stickers, UBS and Northwell Health, on the side of the players’ helmets.
But that only goes so far.
“Brands we work with tell us, ‘If we wanted all these branded products, we would have had them in our store. I want money back or I want an extra year, ”said Laatz.
“I want a refund!” It’s about the last thing team owners want to hear who are already losing ticket and concession revenues.
But Nicky Lewis, an assistant professor at the University of Kentucky, said that sports teams and leagues, and therefore the brands they work with, now have an opportunity to rethink how they interact with fans.
“Interacting with personal viewers through mobile media, digital media and personal media – that’s all gone,” she said. “And so you have the screen at home, and we still love watching our sports on big screens, but you have to meet them on the mobile media device too.”
And Angeline Close Scheinbaum, professor of sports marketing at Clemson University, said when people are back in the stands, they can expect the teams to keep hitting them with information on their phones.
“What are the waiting times at this special concession stand? Or give them little push warnings to remind them of concessions, ”she said.
She said that will be too much for some fans, but the way people watch games is different these days, whether it’s at home or in person. Marketers will find these opportunities.
“Especially when the game itself is in a doldrums, it becomes an additional marketing and engagement opportunity where you have consumers in a place where they are cognitively and emotionally heightened,” said Close Scheinbaum.
Then they’ll likely buy more stuff, like another $ 12 beer or a $ 10 hot dog.
What if some aid money is not spent?
Depending on how you count it, the federal government has so far provided about $ 4 trillion in pandemic-related relief, from loans to tax cuts to new spending. However, Marc Goldwein, Senior Vice President of the Committee on Responsible Federal Budget, said: “There is still a lot of money in the pipeline. ” Leftover PPP money sits on an account. But other issues, like unemployment, are more like Congress, which says, “We’ll spend it if we have to.” But whether this or that program outputs everything that was expected is a very different argument than the total needs of the economy.
How should companies compensate their employees for work-from-home costs?
A new survey from the compensation software and data company Pay scale found that less than 25% of organizations granted grants to employees who worked from home in the past year. How companies do some amount of work from home permanentlyYou need to think carefully about your compensation policies as scholarships can be difficult to find out, said Shelly Holt, chief people officer at PayScale. Also a study The University of Washington found that approximately 75% of Americans cannot work entirely from home. People who work in healthcare and grocery stores, among other things.
What is Budget Balancing and How Could Democrats Use It to Get Goodbye to COVID Aid?
Both President Joe Biden and the Democrats in Congress have announced that they will pass the bill without Republican support using a process known as budget balancing. In the Senate, “the final vote on a bill is passed by a simple majority,” said Kelly Whitener, associate professor at Georgetown University. But under the rules of the Senate, you cannot get that vote unless at least 60 senators agree to end the debate. Budget balancing is a way to get around this but only in very specific cases. It’s a process that was created in a 1974 Budget Act that allows senators to put a bill to a vote by a regular old majority.
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