COVID and the crisis: the economic impact of the COVID-19 pandemic on the well-being of elite athletes and their thoughts about career ending

Abstract

Research question: This study investigates the economic impact of the COVID-19 pandemic in 2020 on the subjective well-being of elite athletes in Germany and their thoughts about ending their careers. Research methods: Using survey data from athletes who are supported by the German Sports Aid Foundation (n = 1652), the study first calculates the negative income shock experienced by elite athletes during the COVID-19 pandemic and then estimates the effects on the athletes’ subjective well-being, in the form of life satisfaction. Additionally, the study estimates the potential influence of an income shock on career ending thoughts. Results and Findings: Regression results reveal that athletes, who experienced a negative income shock in 2020 reported on average lower life satisfaction overall. Life satisfaction was lower, the larger the shock and the lower the income of the athlete. Furthermore, athletes, who had a negative income shock in 2020, were more likely to ponder ending their careers in 2020. Implications: The paper stresses the need for better financial funding for athletes. It also adds to the literature on career endings of athletes by suggesting that financial hardship could be a determinant for athletes to end their careers. The potential subsequent increase in dropout rates not only represents inefficiency but also signifies a loss of talent.