Redefining the game: Principal-agent dynamics in sports event management during the COVID-19 pandemic era

Abstract

This paper examines the impact of COVID-19 on sports events management from a Principal-Agent (PA) Theory perspective. By applying the known elements of the PA-relationship to sports events organized during the COVID-19 pandemic, experts (n = 15) from both the event owners and managers sides were interviewed, examining perspectives on the pandemics impacts on operations, relationships, and interactions between these two main actors. Results suggest while unique operational challenges in staging events during the height of the pandemic were experienced, positive outcomes in areas such as PA-communication, collaboration, operational efficiencies, and acceptance of digitization advancements were also seen. The results also indicate lessons learned that can be carried forward into the future. In applying the PA-Theory from economics to sports events, practical and scientific contributions are provided by examining the impacts of extended crisis on the PA-Relationship in sports events in the context of the COVID-19 pandemic.