Impact of Coronavirus COVID-19 on the Sports Sector - Update - 30 April 2020
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Impact of Coronavirus COVID-19
on the Sports Sector - Update
30 April 2020
Agenda Presenters
Nick Fitzpatrick Chris Morris
Partner, London Senior Associate, London
T: +44 20 7796 6046 T +44 20 7796 6117
Current situation and impact on the sports 3 nicholas.fitzpatrick@dlapiper
.com
chris.morris@dlapiper.com
sector
When might sport resume? 7 Giulio Coraggio Diego Ramos
Partner, Milan Partner, Madrid
T: +39 02 80 618 619 T: +34 91 790 1658
giulio.coraggio@dlapiper.com diego.ramos@dlapiper.com
Will COVID-19 have any lasting impacts on 10
sport?
What practical steps should stakeholders take? 12 Edward Hanover
Partner, Silicon Valley
Jamie Ryder
Partner, Dubai
T: +1 650 833 2004 T: +971 4 438 6297
edward.hanover@dlapiper jamie.ryder@dlapiper.com
.com
Any questions? 15
Key takeaways 16 Guido Kleve
Partner, Cologne
T: +49 221 277 277 353
guido.kleve@dlapiper.com
Current situation and impact on the sports sector www.dlapiper.com 3
The Current State of Play • Sadly, the overall number of confirmed infections and the death toll is still rising. But the curve has flattened, or is flattening, in many countries. • Different countries imposed different restrictions to tackle COVID-19. • “Lockdowns” generally appear to be working, but the global economy has stalled. • Governments around the world now have to decide when to lift their restrictions – balancing health v wealth and saving lives v saving livelihoods. • Some governments have already started to ease their restrictions (e.g. Germany). Other governments have set out a road map for lifting their lockdowns and restarting their economies (e.g. Italy and Spain). • It’s still a waiting game in other countries (e.g. UK). www.dlapiper.com 4
20 March: RFU ends rugby season for all levels below 15 April: Scottish professional 19 March: Dutch F1 GP 11 March: German Ice 17 March: UEFA
the Premiership (which remains suspended); clubs vote to end football season postponed Hockey League ended postpones EURO 2020
12 March: NHL season in 1 April: Wimbledon 2020 is cancelled; ITF suspends all in top 3 leagues below the 24 April: The Eredivisie – until 2021;
season prematurely, no
US and Canada is tennis until 13 July; Scottish Premiership (which the top tier of Dutch football 1 April: UEFA suspends
champion;
suspended 2 April: Premier League and EFL statement: football will remains suspended). Champions – is abandoned for the Champions League and
31 March: DFL extends
7 April: F1 Canadian only return when “it is safe and appropriate to do so”; and relegated clubs decided on a season with no title winners Europa League until
Bundesliga suspension
Grand Prix is postponed 9 April: FA ends non-league season below National points per game basis. and no teams relegated. further notice; and
until 30 April 2020;
League. National League clubs vote to cancel all 21 April: season of 23 April: Women’s Euro
remaining matches this season. Handball Bundesliga 2021 moved to 2022.
15 April: BHA extends its suspension of all horse racing ended; placement at the
in Britain; Grand National cancelled in early April; and time of abandonment;
10 March: La Liga announces 24 April: English cricket season suspended until 1 July Women without champion
matches to be played behind 2020 at the earliest. 27 April: Basketball
closed doors 9 March: all sport at all
Bundesliga suspended.
23 March: all football in Spain is levels suspended;
suspended 13 March: Giro D’Italia
26 March: F1 Spanish GP postponed;
postponed 7 April: Two MotoGP
races postponed.
30 March: 2020 Tokyo
19 March: F1
Olympics and
Monaco GP
11 March: NBA suspended until further notice; Paralympics postponed
cancelled
12 March: MLB suspends operations and until summer 2021
13 March: F1
delays start of season;
Bahrain GP
12 March: NHL season suspended;
postponed
12 March: NCAA cancels basketball 12 Feb: F1
championships; Chinese GP
12 March: F1 Australian GP
12 March: MLS season suspended; postponed
cancelled;
6 April: 3 of golf’s major championships, the 23 March: F1
22 March: AFL season
US Masters, the US Open and the US PGA Azerbaijan GP 13 March: F1 suspended; and
Championship are postponed until later in postponed Vietnamese GP 23 March: NRL season is
2020. The Open Championship is cancelled; postponed suspended.
23 – 25 April: NFL draft takes place remotely.
17 March: 2020
Copa America
moved to 2021
27 February: Final 19 March: Super Rugby
stages of UAE (Cycling) season is suspended (applies
Tour cancelled. to NZ, Australia, South Africa,
28 April: France bans all sporting events, including 16 March: all football
15 March: UAE Arabian 16 April: BCCI Argentina and Japan)
behind closed doors, until September 2020. and cricket in South
Gulf League postponed postpones the 23 March: All rugby in NZ
Prior to 28 April: French rugby, football, the French Africa is cancelled, and
22 March: Dubai World 2020 IPL “until suspended until further notice
Open tennis tournament, the Tour de France and the South Africa Rugby
Cup horse race further notice”
F1 French GP were all suspended or postponed. suspends rugby
postponed.
www.dlapiper.com 5Summary of key themes • As the curve flattens, stakeholders need to plan for a resumption in some form, but normal service is unlikely for the foreseeable future. • Bio-security is key to moving beyond the lockdown – until a COVID-19 vaccine or an effective treatment is found, players, athletes, coaches, staff and supporters will need to be shielded. • The financial pressure on stakeholders is increasing – revenue losses are rising and parties have less scope to “wait out” the crisis. Is the initial spirit of co-operation between stakeholders starting to fray? • Integrity of sporting competition – now less scope for delay. Decisions need to be made as to how to conclude outstanding competitions. High chance of legal challenges. • The challenge for stakeholders is to balance their legal rights and obligations with their commercial interests but without undermining their public reputation – not easy in the current climate. www.dlapiper.com 6
When might sport resume? www.dlapiper.com 7
When might sport resume?
Has the public health situation sufficiently improved
in the country, i.e. has the peak now passed? No
Yes
Has the relevant government or authority
announced that it will be lifting some of its lockdown No No resumption Further disruption
restrictions / lifted them already?
Yes Gradual return to
normal
Could the sport take place in a bio-secure No
environment? Yes
Yes No
Has the relevant government or authority approved No
the sport’s resumption plan?
Yes Sport resumes (most likely behind closed doors Second wave of COVID-19
until a COVID-19 vaccine or effective treatment is infections?
found)
www.dlapiper.com 86 April: some Bundesliga
Week of 27 April: major sports 28 April: France bans all sporting clubs return to training;
continue to liaise with the UK events, including behind closed May?: Bundesliga may
government regarding resumption of doors, until September 2020 at continue in May without
5 April: UEFA announces
sport in what has been reported as a the earliest. spectators and under
that postponed Champions
"quickening of the pace" to help sport strict safety regulations;
League and Europa League Belarus: COVID-19 restrictions
resume "within weeks", if progress is Basketball Bundesliga
could be abandoned if have still not been imposed in
made. But lockdown remains in wants to continue with
restrictions last until Belarus, so the Belarusian
place. Some football teams have only 10 of 17 teams in
September. Premier League has continued
returned to club facilities for individual tournament mode and
as normal throughout the global
/ small group training also without spectators;
pandemic
government approval still
pending.
15 April: President
Trump said “'We have
to get our sports back.”
Major sports are
brainstorming various 27 April: F1 plans to start
ideas for how to 2020 season in Austria in
resume, including July (a country that has
moving all teams to a flattened the curve).
single venue.
28 April: NRL
announces its plan to
28 April: Spanish PM said basic resume season on 28
training said “basic” training for May 2020, as Australia
professional athletes will be begins to ease its
allowed from 4 May, with a gradual restrictions.
re-opening of high-performance
sports facilities from mid-May.
26 April: Italian PM 5 March: Dubai Sports
allows Serie A Council announced
sides to return to cancellation of all
individual training sporting events until end
on 4 May and team of March. Conflicting
training on 18 May reports since. Currently
as Italy begins to lift no date for resumption.
its lockdown.
www.dlapiper.com 9Will COVID-19 have any lasting impacts on sport? www.dlapiper.com 10
Will COVID-19 will have lasting effects on sport? • Will sport behind closed doors become the new normal? • Will we see some teams or competitions not make it through the crisis? • What changes or innovations do you think we are likely to see following this crisis? • Can more sustainable business models be developed in the wake of COVID-19? • Should stakeholders be looking to make better use of technology in the future? • What kind of other legal lawsuits could be expected? • What do you see as the key lessons for sport? www.dlapiper.com 11
What practical steps should stakeholders take? www.dlapiper.com 12
Practical steps – plan and be innovative The initial phase of the pandemic was about reacting to the developing outbreak. Now is the time for planning and innovation. • Prepare your resumption plan: • Can venues be made bio-secure? How can you best protect your employees and staff? • How will you adapt to empty stadiums or arenas? • Do contracts or sporting rules need to be updated or revised? • Be prepared for further outbreaks, or a “second wave” of COVID-19 infections • Engage with your stakeholders – communicate with them and explore mutually agreeable solutions or initiatives • Explore opportunities for positive change: • New revenue streams? • New use of technology? • Can you adapt to the changing environment? www.dlapiper.com 13
Practical steps from our first webinar still apply As a brief recap: • Continue to monitor the changing situation closely. • Check your contracts and any relevant sporting rules to understand your rights and obligations, and seek legal advice promptly in all relevant jurisdictions. • Assess whether you have any relevant insurance or indemnification protection, and whether you are eligible for any government assistance or State aid. • Communicate with suppliers, partners, contractors and customers. • Explore commercial solutions to legal problems, but ensure that you reserve your rights and remedies if doing so. • Be careful about making public statements, creating new documents, or engaging in internal correspondence, which could be unhelpful to you if ever disclosed in later litigation. • Take precautions for the future (including updating your contracts, policies, and procedures etc.) www.dlapiper.com 14
Any questions? www.dlapiper.com 15
Key takeaways www.dlapiper.com 16
Key Takeaways • Continue to monitor the changing situation closely. • Seek legal advice promptly in all relevant jurisdictions and maintain a fact-specific analysis of your situation. • Explore commercial solutions and opportunities. • Take precautions for the future (including updating policies and procedures etc.) • Visit our Coronavirus Resource Centre – DLA Piper’s global repository of COVID-19 related insights and events, which is intended to help clients during these challenging times. • You can also review the recording and slides from our first webinar on 18 March 2020 here. www.dlapiper.com 17
Thank you
Nick Fitzpatrick Giulio Coraggio Edward Hanover Guido Kleve
Partner, London Partner, Milan Partner, Silicon Valley Partner, Cologne
T: +44 20 7796 6046 T: +39 02 80 618 619 T: +1 650 833 2004 T: +49 221 277 277 353
nicholas.fitzpatrick@dlapiper giulio.coraggio@dlapiper.com edward.hanover@dlapiper guido.kleve@dlapiper.com
.com .com
Chris Morris Diego Ramos Jamie Ryder
Senior Associate, London Partner, Madrid Partner, Dubai
T +44 20 7796 6117 T: +34 91 790 1658 T: +971 4 438 6297
chris.morris@dlapiper.com diego.ramos@dlapiper.com jamie.ryder@dlapiper.comYou can also read
