After reading this article: Football has restarted, more on the way, someone casually mentioned that the football stars are rich enough to last until the restarting of the season. Well, to be very precise, the football industry is one huge industry in the UK which will not just affect employment among the players, the coaches and the training staffs. What about the F&B outlets which relied on supporters of these football teams when there are matches? What about the sale of products? Without sales the order to manufacturers would also drop. When this happens, we are even looking at loss of jobs in some other industries too.
Article in careerbuilder.co.uk . CareerBuilder.co.uk and EMSI (Economic Modeling Specialists International) ran a scenario to identify importance of the sports industry to the UK economy. The results showed that when sports industry is in cold storage, then the loss to the industry would be £23.8 billion (RM127.7 billion) in earnings and 987,564 in jobs.
If we look at just football alone and narrow it to just the South East region, it would mean a loss of 51,952 jobs followed by London with 37,341 jobs, Scotland with over 31,922 jobs and West Midlands with 30,410 jobs. Please do read here fo the full impact from the sports industry and not just football. Article in careerbuilder.co.uk
1 million people with jobs within the sports industry? Imagine just 10% of this number are now starting to miss their mortgage payments because they were not paid salaries. The clubs have no job for them, thus not paying them. This is 100,000 people unable to pay and this will cause a huge ripple in the industry yeah. Technically, it’s not yet Non-Performing Loan (NPL). However, these would now be classified as Gross Impaired Loans (GILs). Earlier article on GIL in Malaysia here. As the name has indicated, this is definitely not a good news for the banks and for the industry yeah.
So, do stop thinking that only manufacturing or the services or even just the SMEs. The sports industry is a huge one and for the UK, especially football. This is why it’s a super tough decision for the government whether to allow or not to allow a restarting of the sports industry,. Happy following.
Next suggested article: Sports car or property? Neither. Let’s buy a football club instead