All entrepreneurs and organizations in the field of physical education and sports, who have stopped work due to the coronavirus, incur heavy financial losses, will be forced to lay off staff and risk going bankrupt. The industry needs government support. This is stated in a letter addressed to Prime Minister Mikhail Mishustin. It was signed by representatives of the public council under the Ministry of Sports, heads of fitness associations, organizers of the largest sports competitions – Ironstar, Oceanman Russia, the Running Hearts marathon and other companies in the industry.
Vedomosti reviewed a copy of the letter. Its authenticity was confirmed by the head of the working group for the development of support mechanisms for the sports industry and the creation of sports and production clusters of the public council under the Ministry of Sports, Denis Gudkov, President of the Association of Fitness Industry Operators Olga Kiseleva and Andrey Arikh, Managing Partner of Arikh Sport Production (organizer of mass sports events). A government spokesman did not respond to the request.
The recommendation to suspend, postpone or cancel all sporting events in Russia on March 21 was circulated by the Ministry of Sports. On the same day, the chief state sanitary doctor of Moscow, Elena Andreeva, ordered the capital’s fitness centers, swimming pools, water parks and other sports facilities to stop admitting visitors. Since March 23, such measures have been introduced in the Moscow region.
7-8 billion rubles.
monthly losses of fitness clubs in Russia, according to the Association of Fitness Industry Operators
In total, there are about 11,000 fitness facilities in the country, of which 1,800 in Moscow have been closed since March 21. 1100 will be closed in the coming days in the Moscow region, says Kiseleva. According to her, the industry’s losses amount to at least 7-8 billion rubles. monthly and they will grow every day. Organizers of various sporting events will lose a few more hundred million rubles, Arich adds.
To neutralize costs, the authors of the letter propose to the government to legislate the deferral of payments for rent – for 120 days after the date of lifting the restrictions imposed by the authorities in connection with the spread of coronavirus. After all, 90% of fitness clubs rent commercial space, Gudkov explains.
1.4 billion rubles
fitness companies in Moscow pay taxes per month, according to the association
For the same period, the authors write, the employees of fitness centers and organizers of mass sports events should be provided with mortgage, credit and tax holidays. Also among the proposals is to introduce a moratorium on initiating bankruptcies until the end of the year. For the organizers of mass amateur competitions, the authors of the letter propose to provide financial support for each amateur competition in 2020, if at least 500 people have finished or have applied for participation.
Soon, the measures will spread throughout Russia, Gudkov suggests.
11 000
fitness facilities all over Russia. Of these, 1,800 have already been closed in Moscow, another 1,100 will be closed in the coming days in the Moscow region
In addition to the ban on the work of fitness clubs, a complete ban on any mass sporting events in our country is actually being introduced for an indefinite period, Arich notes. For example, the largest ski marathons in Russia have already been canceled: the Holiday of the North in Murmansk, which was to take place on March 28-29, and the Yugorsk ski marathon in Khanty-Mansiysk, scheduled for April 11. The April race in Moscow and the Spring Thunder running festival have been postponed; the holding of the first Ironman race in St. Petersburg and the All-Russian Running Hearts marathon are in question.
Business shutdown is a new reality, says Maxim Zhurilo, co-founder of I Love Supersport and Ironstar projects. I Love Supersport trained about 30,000 people. The coaching staff – about 550 people across Russia – were paid piecework and they were left without work, Zhurilo complains, the government’s support is necessary.
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