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

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.