How New York City business will navigate the post-Covid-19 world – Crain’s New York Business

The last industry likely to experience any type of reopening is the event business. That includes Broadway shows, museums, art galleries and professional sports.

"I think they'll be among the last to open," said Mark Conrad, director of the sports business program at Fordham University. "There are inherent society safety situations when you're dealing with public performances, and you can't easily control crowds."

"Cultural institutions were not built for social distancing," said Taryn Sacramone, executive director of the Queens Theater. "There have been incredible financial losses to cultural institutions."

Sacramone said so much of any predicted opening depends on when the public will feel ready to reengage with arts institutions.

International travel plays a huge role in the sphere, she noted, as does when schools reopen for field trips.

"There are a lot of different angles as to what this is going to look like," she said.

Conrad said he believes it could be months before Broadway shows are able to continue, as even 3,000 people separated by 6 feet in a theater would still be dangerous. He said he doesn't think concerts will start in New York anytime soon, mainly because of the nature of the venues and the density of the people in them, creating the potential for the virus to spread.

The entire business of professional sports could be altered, he added. There have been talks of the National Basketball Association and Major League Baseball starting to play games again, but Conrad said that is unlikely.

"Any solution or any idea has risks, and we're all faced with bad choices," he told Crain's. "If no games are played, that is going to be catastrophic. If some games are played with this risk, what happens if this risk occurs? Do you cancel or do you not cancel?"

Conrad estimates 40% of MLB revenues come from gate receipts. The possibility of games played in empty stadiums could radically damage the sport's finances, he said.

Other leagues are in better shape. The National Football League's TV contract is ironclad, and the NBA already played 75% of its regular-season games. Additionally, a clause in NBA contracts says that in the event of a pandemic, if games are not played, players are not paid.

A cycle of no games and no revenue is likely to create a downward economic spiral. Municipalities will be affected by the lack of parking receipts and the loss of stadium concessions.

"You may see certain owners being forced to sell teams if they get into a liquidity crunch," Conrad said.

The loss of professional sports also would destroy a sector the city has relied upon for decades as a consistent source of revenue: tourism.

"Yankee Stadium is not filled on a Tuesday night because of New Yorkers," said David King, assistant professor of urban planning at Arizona State University. "It's filled because people are visiting the city and going to a baseball game."

The decline in tourism would have far-reaching effects not just on the city's live events but also on retail shopping and nightlife.

"It's underappreciated how many bars and restaurants and theaters are supported by tourism," King said. "New Yorkers go occasionally, but it's tourists who go frequently."

The hospitality industry has already been damaged by a drop in tourism. Hotel occupancy levels are down 80%, and some analysts expect it will take years for hospitality groups to recover.

Excerpt from:
How New York City business will navigate the post-Covid-19 world - Crain's New York Business