The government’s relief funding for the sports sector is not enough to cover overhead costs, sports business operators told an online news conference yesterday.
The Sports Administration last week said that sports-related businesses are eligible for a one-time payment if they can provide evidence that their revenue for last month, this month or next month declined 50 percent or more from the same month last year, or from their average revenue in March and April.
Subsidies would be calculated by multiplying NT$40,000 (US$1,443) by the number of employees, it added.
Businesses that do not pay their employees the basic wage stipulated by the Labor Standards Act (勞動基準法) would receive a one-time subsidy, to be calculated by multiplying NT$10,000 by their number of workers.
Professional athletes whose contracts have been suspended or canceled because of the level 3 COVID-19 alert are eligible for a one-time payment of NT$40,000 if their earnings last month, this month or next month decreased 50 percent or more from the same month last year, or from their average earnings in March and April.
Table Tennis Promotion Association board member Wang Shu-ching (王淑靜) said that relief funds to be received by sports business operators are calculated based on their number of employees, meaning that the funds are mainly for covering salaries, as well as health and labor insurance fees for employees.
“The relief funds do not cover rent, utilities and other administrative expenses that business owners must pay each month. Some of the business operators manage to survive without cash flow, albeit mostly in an unsustainable way,” she said.
Some table tennis venues in central and southern Taiwan have begun to sell equipment to stay afloat, Wang said, adding that more fitness studios might be forced to file for bankruptcy in the next few weeks.
Curves Taiwan executive director Chen Ying-ru (陳映如) said that gym operators have experienced a revenue shortfall since they temporarily closed almost one month ago, but in the meantime they must still pay rent and other fixed costs.
Their financial losses could top NT$100 million, she said.
Taiwan People’s Party Legislator Andy Chiu (邱臣遠) said that the pandemic’s effects on the sports sector are not likely to be resolved in one or two months.
The Sports Administration should understand that there are different types of sports businesses and that the pandemic affects them differently, he said, adding that the financial assistance should match the type of business.
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