(Editor’s note: This story was written Wednesday, March 11)
By Gil Fried, Editor in Chief, Sports Facilities and the Law and Chair/Professor, Sport Management, College of Business, University of New Haven
This article represents an attempt to address a rapidly changing and dynamic situation. While there is significant attention paid to how countries such as China, Italy, Israel, and the United States are dealing with the Coronavirus (COVID-19), the impact on small business and even larger events is just starting to be felt. The travel industry is taking a big hit. Due to the industry earthquake, the market tanked on several major entertainment companies such as Live Nation whose shares have dropped from around $75 in February to $47 on March 11th. The question is how will the public assembly facility industry deal with this recently declared pandemic. This special report will explore the viruses impact on the sport and music industry to steps that can be taken to try and reduce the risk and deal with the business ramifications associated with the virus.
Sport Industry
On March 9, 2020 the four major leagues currently playing have addressed the issue from a player protection perspective. MLB, MLS, the NBA, and the NHL issued a joint statement yesterday that announced that all team locker rooms and clubhouses across the four leagues would only be open to players and essential employees of teams and team facilities until further notice.
On the same day (March 9th), the United States Olympic & Paralympic Committee announced that the 2020 Team USA Media Summit has been postponed over concern about the spread of coronavirus. The summit had been scheduled for March 15-18 in Los Angeles.
The BNP Paribas Open, one of the largest non-major tennis tournaments in the world, was postponed and will not start on March 12. The tournament was postponed, even after most of the players had arrived, after California county officials declared a public health emergency when a coronavirus case was confirmed in the area. The tournament attracted just shy of 500,000 fans over the past two years.
Internationally, The UEFA Champions League match between Paris Saint-Germain and Borussia Dortmund in Paris was played on March 11th without fans. France banned gatherings of more than 1,000 people.
Similarly, Italy, is taking unprecedented steps to stop the virus, which has significantly impacted the country. The government announced that all sports would be halted in the country, including Serie A matches and Olympic preparatory events. Soccer teams had already been playing matches without fans in the stadium. The government directive did not include international matches such as teams in both the Champions League and the Europa League.
With the Olympics around the corner, there is significant concern about the event and what will happen. The Olympic flame lighting ceremony for the 2020 Games was held March 12th in Olympia and was restricted to just 100 accredited guests. Italy recently cancelled several Olympic trial events.
Delays and cancellations have also occurred throughout Asia. Japanese officials delayed the start of the country’s professional baseball season. This was after the preseason games were played in empty stadiums. Also, the Hong Kong Marathon was cancelled.
We might see everyday more cancellations, events being postponed, and facilities closing their doors. It is not just sports, concerts are facing the same concerns.
Music Industry
More than 20,000 music events between January and March have been canceled or postponed in China and Hong Kong, costing 2 billion yuan ($286 million) in ticketing and box-office losses, according to the China Association of Performing Arts.
Billboard has compiled a list of concerts which have been cancelled including:
Jan. 24 – The Chinese government closed the Mercedes-Benz Arena indefinitely. This has impacted over a dozen shows already.
Jan. 30 — The Boston Symphony Orchestra announced the cancellation of its Asia tour.
Feb. 28 – Green Day postpone their tour of Asia “due to the health + travel concerns with coronavirus.
Feb. 29 – Avril Lavigne cancelled the Asian leg of her Head Above Water World Tour.
March 4 – Ultra Music Festival’s Miami festival scheduled for March 20-22 is cancelled.
March 4 — Various companies such as Apple, Twitter, Amazon, TikTok, Facebook and other major companies pull out of this year’s SXSW festival.
March 6 – The 2020 SXSW festival cancels its entire event. The event was posed to contribute $356 million to the local economy.
March 9 – Madonna’s Madame X Tour comes to a halt due to new restrictions on public gatherings implemented in France amid the virus spread. https://www.billboard.com/articles/business/touring/9323647/concerts-canceled-coronavirus-list
March 10- Coachella music festival moved the event from April to October due to coronavirus fears.
These events are just the tip of the iceberg and it will be impossible to track all the changes as new cancellations and postponements are announced every day.
Solutions
Based on these postponements and cancellations, the key will be what can public assembly facilities (PAFs) do to make it safer for them and others. The simple solution is proper cleaning and monitoring, but that is just the start and the strategy to treat the current problem, but does not address the underlying issue-preparedness for the unknown.
Clean and Disinfect
All PAFS need to clean and disinfect frequently touched surfaces on a daily basis. This includes tables, doorknobs, light switches, countertops, handles, desks, phones, keyboards, toilets, faucets, and sinks. For PAFS this will also include all concession stands, condiment carts, bathrooms, seats, suites, loges, etc…
If surfaces are dirty, they should be cleaned. There are a number of industrial detergents that can be used in addition to some that can also disinfect at the same time. However, it is important to make sure the disinfectant is appropriate for the surface being cleaned.
If cleaning supplies are low, a cleaning crew can create their own disinfecting solution by combining: 5 tablespoons (1/3rd cup) bleach per gallon of water- or – 4 teaspoons bleach per quart of water. Unexpired household bleach will be effective against coronaviruses when properly diluted. Other products that can be used for disinfecting include an alcohol solution (at least 70% alcohol) and products with EPA-approved emerging viral pathogens.
Cleaning crews should follow manufacturer’s instructions for application and proper ventilation. Management should check to ensure the product being used is not past its expiration date. Employees need to be reminded that they should never mix household bleach with ammonia or any other cleanser.
Cleaning staff should wear disposable gloves and gowns for all tasks in the cleaning process, including handling trash. The gloves and gowns should be compatible with the disinfectant products being used. Some cleaners require specialized personal protective equipment (PPE) and that needs to be identified from the very beginning of the cleaning process. Gloves and gowns should be carefully removed to avoid contamination of the wearer and the surrounding area. Be sure to clean hands after removing gloves. Cleaning staff should immediately report breaches in PPE (e.g., tear in gloves) or any potential exposures to their supervisor.
All employees, not just the cleaning staff, should clean hands often (by washing hands with soap and water for 20 seconds and if soap and water are not available, an alcohol-based hand sanitizer that contains 60%-95% alcohol may be used). This is especially critical when employees are constantly dealing with people, handling money/change, inspecting bags, etc…
All employees also need to practice good hygiene. That ranges from making sure they have freshly laundered clothes, not displaying any signs of illness, not getting too close to patrons, not using a handkerchief, and similar clean/healthy strategies.
These are all basic cleaning/disinfecting strategies, but it goes beyond that in terms of planning for each event and planning for the future.
Planning
Unfortunately, many of us plan at the last minute to address issues. It would have been great to develop a contingency plan years ago, but every event is different and even the best developed plans would not have appreciated the scope and depth of the current virus outbreak/response. While every potential disaster is different, there are common strategies that can be deployed to minimize the potential impact of any given potential disaster.
Developing a detailed checklist can be beneficial. The International Association of Venue Managers (IAVM) has developed such a checklist. Here is the link: https://www.iavm.org/sites/default/files/documents/operationalreviewworksheet.pdf. Some key takeaways from that detailed six-page checklist include:
Create a crisis team that can develop and be responsible for implementing the response plan
Bring all relevant stakeholders to the table (employees, unions, government officials, tenants, etc…)
Establish relationships with local hospitals and health officials
Develop appropriate communication plans
Make sure all equipment is properly services so at least that one concern is mitigated
Analyze all contracts and insurance policies regarding terms associated with event cancellation
Document any specific expenses as they might be reimbursable or covered by the government/tax rebates.
Practice the plan on a regular basis
Identify which functions or areas can be closed/modified to allow more effective operation during an issue
Post appropriate signage for employees and patrons highlighting safe strategies to pursue to protect themselves and others.
Provide detailed information on health related issues over the loudspeakers and scoreboards
Besides frequent cleaning of bathrooms, all cooking utensils and equipment need to be regularly cleaned.
Identify strategies for reopening and what strategies to pursue once the issue has passed as patrons/employees might be scared to return to the facility.
Additional Key Strategies
Some additional approaches facilities can take to make themselves less likely to shutter during an issue (if they have control as if the government closes a building that is something that cannot be controlled) include:
Cross train employees in multiple areas in case some employees are not able to work.
Identify all key suppliers and make sure there is a strong relationship where they can provide materials in an emergency.
While storage space in any facility is critical, it is important to have some extra stock just in case.
Develop relationships with other venues to share resources, information, and possibly be good neighbors.
Possibly purchase instant temperature takers and have them available if government allows events, but requires temperatures to be taken before allowing people in.
While many advocate social distancing (3-6 feet between people), that is impossible in a fixed seating bowl and that is when fan education needs to be emphasized.
Explore what should be the charge for a tenant/renter if they still want to use the facility, but will not have any crowds as the expense structure for the event will change.
Special attention will need to be paid to the locker/dressing rooms as teams/entertainers will be super vigilant and demand that the area be completely disinfected.
Communication
Having the right communication plan is critical. Employees, patrons, and tenants are all scared and want to know what is going on. They anticipate that facility managers are like wizards and can answer all the questions…immediately. We know that is impossible, but that does not resolve the fear and angst people will have. How you address issues and communicate what will happen makes all the difference. Consider for example cancellation of SXSW. SXSW’s policy reads: “SXSW does not issue refunds under any circumstances. Any and all payments made to SXSW are not refundable for any reason, including, without limitation, failure to use Credentials due to illness, acts of God, travel-related problems, acts of terrorism, loss of employment and/or duplicate purchases.” While this might be the policy, this is not what the public want to hear. The public, vendors, and employees are upset that they might have purchased tickets, expected revenue, planned a vacation, etc… and they do not want to hear excuses or a tough luck story, they want solutions and for the event to know that people matter and there is concern for them. An informed message delaying how and what will be done for tickets could convey a more heartfelt message compared with a strict interpretation of a contract.
Conclusion
The Coronavirus is a serious threat. We have not faced anything similar to this since 9/11. We need to be prepared and many facilities are now realizing that they had great plans, but this event might not have been what they were expecting. We always need to expect the unexpected. We need to plan, purchase necessary supplies/equipment, train employees, and communicate effectively with a number of stakeholders.
May we all stay safe and get through these trying times in the best way possible with a forward outlook to better days.
