Coronavirus: How outbreak is financially impacting Welsh sport

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Wales players in training just hours before the Six Nations match against Scotland was postponedImage source, Huw Evans picture agency
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Wales players in training just hours before the Six Nations match against Scotland was postponed

The coronavirus outbreak means sport is in a period of unprecedented uncertainty.

With vast swathes of sport across the world suspended or cancelled, health and safety is clearly the priority.

And as the outbreak's long-term harm is considered, there are also fears of other effects such as crippling economic damage.

Several businesses will be concerned about their futures, and among them will be sport clubs and governing bodies.

As postponements and cancellations pile up, millions of pounds could be lost and jobs could be at risk.

In a rapidly changing situation, this is the financial impact coronavirus is having - and could continue to have - on Welsh sport.

Rugby union

One of the highest profile single postponements was Wales' Six Nations match against Scotland on Saturday.

Despite sweeping cancellations across other sports, the Welsh Rugby Union initially said on Friday the game would go ahead, which would have made the Principality Stadium the location for one of the largest gatherings of people in the world that weekend.

But it was called off just a few hours later, with WRU chairman Gareth Davies defending the decision following criticism from fans who had already arrived in Cardiff for the match.

International fixtures are crucial sources of income for the WRU.

In its accounts for the year ending 30 June 2019, the governing body said the six Tests it hosted during that period "generated 50% of the group's overall income" of £90.5m.

Considering a typical international match is worth between £6m and £8m, the WRU will hope the Scotland game can be rearranged in order to recoup lost revenues.

Saturday, 31 October has been mooted as a potential date on which the Six Nations could play all three of its postponed fifth-round fixtures which were meant to have taken place this weekend.

A WRU spokesperson said: "All tickets for the postponed Guinness Six Nations clash between Wales and Scotland this weekend will remain valid for the rescheduled fixture and so we strongly encourage all supporters to keep them in a safe place.

"In the unlikely event that the fixture is not rescheduled all tickets will, of course, be refunded.

"In the third scenario, where the game is re-scheduled but individuals still wish to seek re-imbursement for any reason, full details of the process and method of this re-imbursement will be clearly established at the time of the announcement of the new fixture

"We fully appreciate that many supporters have been inconvenienced and made every effort to stage the game but ultimately postponement became the only viable option. We will make further announcements about rescheduling as soon as possible."

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'I'm surprised it's taken so long' - Scotland fans on Cardiff call-off

Coronavirus is also causing major disruption to domestic rugby in Wales.

The Pro14 has been suspended indefinitely and, while the league says the resumption of the competition will be "a matter of constant review", this season's future is in doubt.

Among the postponed fixtures are two Welsh regional derbies on Saturday, 28 March, Scarlets' home match against Dragons and the Ospreys hosting Cardiff Blues.

The regions are expecting to take a "significant hit" financially from the disruption, a source tells BBC Sport Wales.

As well as tickets and other match-related sources of income, regions are dependent on numerous non-rugby revenues such as hospitality and concerts.

Uncertainty about this season could also affect the next one, with regions potentially having to put on hold plans for next term's season ticket prices and sales.

However, the regions have been encouraged by the way in which several associated companies - such as sponsors, caterers or those buying tickets and hospitality - have reacted "sensibly" to the situation, demonstrating an understanding of the regions' predicament.

Beyond the professional game, the WRU announced on Saturday a suspension of all forms of rugby in Wales for the remainder of March.

Football

The effects of coronavirus on football have been enormous, with all Premier League and EFL matches suspended until 3 April.

Swansea City head coach Steve Cooper described it as a "unique situation", while Cardiff City have a player and member of staff self-isolating.

Clubs are still getting to grips with the health implications of the outbreak, and Cardiff chairman Mehmet Dalman says they are bracing themselves for financial setbacks as well.

"One hopes that over a short period of time it will all even out," he said.

"But in the short term we all have to take a little hit on the gate receipts. Really we should be able to navigate ourselves through this."

Image source, Huw Evans picture agency
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Cardiff City had been due to host Leeds United in the Championship on Sunday

Broadly speaking, the higher up the football pyramid a club is, the less dependent they are on match-day revenue.

For Premier League clubs and many in the Championship, broadcast rights are their main sources of income.

Cardiff are a good example, as their accounts for the year ending 31 May 2019 show the Bluebirds' turnover rose from £35m to £125m, primarily driven by the "significant increase in TV and league revenue" of spending the 2018-19 season in the Premier League.

Of that £125m, almost £107m came from broadcast rights deals.

Further down the divisions, however, TV money is nowhere near those levels and clubs are more reliant on the funds they generate on match days.

That is true for Newport County, who play in League Two and are fearful of the potential financial implications of months without playing a home game.

If that happens, Exiles manager Mike Flynn believes the EFL should offer financial support for the affected clubs.

"One of the decisions they make has got to be for the interest of the lower league clubs," he says.

"Can you imagine they postpone football for a month and two clubs go under?

"That wouldn't be right. I'm sure they won't allow that to happen.

"I think it's only fair that they [clubs] get what their average gate is. I'm sure there's enough money to cover this.

"It's not ideal but we've got to get on with it, we've got to be responsible. Obviously health is the most important thing."

Flynn's view is shared by Tranmere Rovers owner Mark Palios, who says the Premier League and government should offer support to EFL clubs facing hardship.

The chief executive of another League One side Rochdale, David Bottomley, has warned cancelling the season could be "disastrous" for some clubs' finances.

The vast majority of EFL clubs released statements on Friday supporting the announcement to postpone matches in the top four divisions.

Although six Nations League matches were played on Saturday, Wrexham's trip to Barrow was postponed after a member of Wrexham's first-team squad was advised to self-isolate.

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Football suspension 'very worrying' for clubs - Rochdale CEO

The Football Association of Wales, meanwhile, has suspended domestic football at all levels in Wales until at least 4 April.

International football has also been affected, with Wales having to cancel their March friendlies against Austria and the United States.

Both were home fixtures and, although that means the FAW will have missed out on match day revenue, it is understood some of the governing body's commercial partners have been willing to share some of the financial burden of the cancellations.

The biggest disruption in Wales' schedule could be yet to come as Uefa's 55 member associations will meet - via video conference - on Tuesday to discuss the possibility of postponing Euro 2020.

Other sport

As cricket prepares for the start of the domestic season in Wales and England, Glamorgan have had to call off their pre-season tour of La Manga because of the coronavirus crisis.

It is understood the cancellation has cost the Welsh county at least £15,000.

Pre-season fixtures in the Spanish resort between Glamorgan and Gloucestershire and Hampshire and Warwickshire will not take place.

Glamorgan say their remaining pre-season fixtures are unaffected at this stage but, with the County Championship due to start in less than a month, this year's campaign could face severe disruption.

Ice hockey has also been hit by the outbreak, with the UK's Elite League cancelled for the rest of the season after it was revealed two of the competition's 10 clubs have players in self-isolation.

Cardiff Devils led the table at the time of the cancellation, a point clear of Sheffield Steelers.

In a further blow to the Devils, the international match between Great Britain and Poland scheduled to take place at their Viola Arena home in Cardiff on Saturday, 18 April was cancelled as well.

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Welsh boxers Lauren Price and Rosie Eccles targeting Tokyo 2020

Athletes also face an anxious wait to discover if this summer's Olympic Games will go ahead in Tokyo.

Welsh boxers Lauren Price and Rosie Eccles are competing in European Olympic qualifiers in London this week.

International Olympic Committee president Thomas Bach is "very confident with regard the success" of the Games, while Japan's Prime Minister Shinzo Abe has insisted they will go ahead as planned in July.

Rio Olympics silver medallist Victoria Thornley says it would be "unthinkable" for the Tokyo Games to be postponed or called off because of coronavirus.

However, several Olympic sports have already been disrupted.

Former Tour de France champion Geraint Thomas will hope to add a cycling road race gold medal in Tokyo to the two gold medals he won on the track in 2008 and 2012.

But the cycling season has been put on hold by coronavirus, with the sport's world governing body Union Cycliste Internationale announcing on Sunday it was suspending all races and events until at least 3 April.