• Loading stock data...
Thursday, December 26, 2024

PwC Survey: Executives Worried About Uncertainty, Looking Past 2020

  • The survey finds 80% of financial leaders concerned about the recession from the coronavirus pandemic.
  • 14% responded that their company is not considering financial actions during the outbreak.
Mar 15, 2020; Vancouver, British Columbia, CAN; Shuttered ticket windows are seen at Rogers Arena. A game between the Winnipeg Jets at Vancouver Canucks has been cancelled following a decision by the NHL to postpone its season due to the Covid-19 coronavirus outbreak. Mandatory Credit: Anne-Marie Sorvin-USA TODAY Sports

While the sports industry was one of the first to be hit hard by the response to the coronavirus pandemic, the economic ripple effects won’t stop any time soon, according to a PricewaterhouseCoopers survey of U.S. and Mexican chief financial officers.

The survey reflects the thoughts of 50 CFOs from U.S.- and Mexico-based companies polled between March 9-11, with 80% coming from Fortune 1000 companies. 54% of those executives said the outbreak has “the potential for significant impact of business operations,” and 80% indicated a potential recession is among the top three concerns during the crisis.

PwC Chair and Senior Partner Tim Ryan said the continued uncertainty would be the primary topic of concern in the coming weeks. 

“Uncertainty, especially regarding both the length and severity of the COVID-19 pandemic, is a predominant concern for chief financial officers,” Ryan said. “However, with 90% of CFOs and finance leaders optimistic they can return to normal business operations fairly quickly if the pandemic stops soon, this should signal a strong sense of urgency for business leaders to work closely with government and public health officials to help address the crisis.”

Through the pandemic response and ensuing economic recovery, Ryan said transparency would be paramount as business returns to normal, whenever that might be.

Currently, companies seem to be focused on the health and safety of workers and figuring out how to operate effectively with those in mind.

While there was no direct correlation to the sports industry in the PwC survey, Ryan reported a client in the entertainment sector said forward bookings from July 1 to December 31 are down. 

“Consumer confidence is a key element,” Ryan said. “[The] translation is that consumers are not yet confident to buy until they see it settle down.”

As the survey was conducted before many of the closures of small businesses and community restrictions across the country over the weekend and Monday, the long-term sentiments will change, Amity Millhiser, PwC U.S. vice chair and chief clients officer, said.

PwC intends to run the survey every two weeks to see how CFO sentiment changes throughout the coronavirus pandemic.

“Each day, as things develop, changes people’s outlook in terms of that,” Millhiser said. “The ability to bounce back quickly will be challenged the longer and deeper the crisis goes.”

READ MORE: Ticketing Industry Avoids ‘Apocalypse,’ But Still In Dangerous Times

As the situation continues to develop, Ryan said he expects the answer to long-term effects to change how company leaders and investors judge companies, especially as 58% expect a decrease in revenues.

“We’re just beginning to see a shift of CEOs and boards asking less about 2020 in a recognition that’s not about 20’s earnings but positioning the company for success,” Ryan said. “I suspect we’ll see different answers.”

Likewise, Millhiser said the near-term focus for companies is on cost containment versus long-term action on pulling back on strategic investment. Millhiser said that makes the key question moving for the length and severity of the outbreak.

“If conditions continue to deteriorate, we would expect to see a pullback in long-term investment spending as companies move to longer-term cost containment strategies,” she said.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Indiana Fever guard Caitlin Clark (22) smiles in an interview after becoming the first rookie to have a triple-double Saturday, July 6, 2024, during the game at Gainbridge Fieldhouse in Indianapolis.

Caitlin Clark’s Record-Smashing, Historic Year in 2024

Clark smashed numerous on- and ocourt records in the NCAA and WNBA.
Nov 23, 2024; Corvallis, Oregon, USA; Oregon State Beavers students celebrate during the fourth quarter against the Washington State Cougars at Reser Stadium.

How the Pac-12 Rose From the Ashes in 2024

The conference went from uncertain future to remarkable comeback.
Nov 25, 2024; Inglewood, California, USA; From left: Scott Van Pelt, Ryan Clark, Jason Kelce and Marcus Spears on the ESPN Monday Night Football Countdown set before the game between the Baltimore Ravens and the Los Angeles Chargers at SoFi Stadium.

A ‘Wave’ of Sports Content Is Coming to TikTok

The next generation is consuming sports in a different way.

Featured Today

NHL Winter Classic 2024

NHL, TNT Pinning High Hopes on First New Year’s Eve Winter Classic

Can the dream setting of Wrigley Field lift flagging viewership?
Texas Memorial Stadium
December 21, 2024

Inside the First On-Campus College Football Playoff Games

FOS is on the ground in Austin for Clemson-Texas.
December 19, 2024

The Lawsuits That Defined the Business of Sports in 2024

Litigation was flying, and lawyers were busy this year.
Indiana's Elijah Sarratt (13) celebrates a touchdown during the Indiana versus Purdue football game at Memorial Stadium on Saturday, Nov. 30, 2024.
December 16, 2024

How College Football Entered an Unprecedented Era of Parity

The reason the expanded Playoff bracket includes new faces.
FIFA

Saudis Awarded 2034 World Cup in Uncontested Vote

Saudi Arabia was the only option after Australia decided not to bid.
May 20, 2024

Top Sports Business Jobs This Week (May 2024)

Each week, our staff combs through the thousands of job listings from…
The stands at the Solheim Cup
September 13, 2024

LPGA Apologizes for Solheim Cup Fan Bus Debacle That Left Stands Half-Empty

The USA-Europe women’s team golf event teed off Friday morning.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
October 3, 2022

Real Madrid President Renews Call for Super League

Real Madrid’s president believes that soccer is losing ground.
August 10, 2022

PGA Tour Touts Projected Earnings to Keep Players

The PGA Tour is asking its players to consider their potential futures.
August 10, 2022

Bayern Munich to Make Growth Push in U.S. Market

Bayern Munich is looking to expand its reach in the U.S.
Nintendo-logo
August 3, 2022

Nintendo Profits Underwhelm, Switch Sales Decline

Nintendo failed to meet expectations in the company’s latest earnings report.