By Constantinos Massonos, Contributor
The Coronavirus pandemic is more than just a health threat. It’s the biggest disaster for the sports world in decades. It has suspended competitions like the NBA and Europe’s soccer leagues. The Tokyo 2020 Olympic Games, Euro 2020, and Copa América have all been postponed.
Experts say it’s too early to estimate the damage to the sports industry. Broadcasters are revising current deals, sponsors are cutting back, and matchday revenue is near zero. This puts many European clubs at risk of bankruptcy. Some clubs have already cut costs, including players’ wages. Even stars like Lionel Messi and Cristiano Ronaldo have accepted pay cuts.
The financial impact isn’t just affecting sports clubs and athletes. Individual athletes are also struggling. With competitions suspended, they lose prize money and sponsorship income. Many athletes are now relying on their emergency funds to cover essential expenses.
This financial disruption requires athletes to protect themselves and their loved ones. The first step is creating a short-term financial plan. Here are the key steps:
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Prioritize Essential Needs: Your financial goals should align with the current crisis. Your priority should be securing housing, food, and essential bills.
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Assess Your Financial Situation: Add up your emergency fund and liquid assets, such as cash, bank accounts, and certificates of deposit. If necessary, banks may allow you to access fixed-term savings without penalties.
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Consider All Income Sources: Add up any income, including wages, appearance fees, sponsorships, or endorsements. Don’t forget any government assistance, like stimulus checks or unemployment benefits.
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Review Your Bills: List all bills for the next months. Cancel automatic payments and identify essential expenses. Cut back as much as possible to stretch your resources.
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Cut Discretionary Spending: If your income is near zero, avoid luxury purchases. Prioritize essential bills like rent, utilities, and groceries. Discretionary spending should be minimized.
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Communicate with Your Landlord: If you’ll be late on rent, explain your situation to your landlord. Many governments have suspended evictions during the pandemic, and landlords may offer more time to pay.
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Explore Mortgage Options: Check if you can take a mortgage repayment holiday. Use any flexibility offered by banks to improve your liquidity.
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Balance Your Income and Expenses: Create a table to track income and expenses. If your income exceeds expenses, save the surplus in your emergency fund. If expenses exceed income, cut back more on spending. If necessary, use your emergency fund or credit lines as a last resort.
These are tough times, but we will get through them by staying strong emotionally, physically and financially. Having our finances under control can relieve some of the stress all of us are currently feeling. You can contact us for further assistance and recommended actions you can take to alleviate the financial impact of Covid-19 at [email protected]