All well-written dramas have a beginning, a middle and an end, in between which the plot twists and turns, often in unexpected ways. So it is with the global economic downturn, which appears to have all the hallmarks of a classic drama. The impact of the downturn on sport has certainly started, it definitely is not yet finished, and so we find ourselves somewhere in the middle of what is rapidly becoming the most unprecedented situation facing the new world of commercialized, globalized sport. Just about six months ago, I was asked to comment on the consequences the downturn might have for sport. While I stand by the underlying principles of my assessment at that time—that sport will be amongst the most recession-resistant industries—the world's economic problems have developed with a velocity and severity that have taken even the most pessimistic commentators by surprise. Indeed, sport, which at one time may have appeared to be largely immune to the impending recession in some countries, can now only be described at the very best as being more resistant than, for instance, the financial services sector.

Events, sponsors, clubs and players have already been affected by an economic reality that some in sport have never encountered before. Yet, it was the demise of the Honda Formula One team late last year that arguably sharpened people's sense that sport faces a major problem in coping with the downturn. Many were left asking, if a sport like Formula One, characterized by its heady mix of money, global appeal and glamor, could fall a victim to the world's financial paralysis, then nobody would be safe. Such was the impact of Honda's pullout, that Formula One witnessed a game of Chinese whispers in which rumors of further pullouts, involving teams ranging from Benetton to Toyota, were being pedalled. During nervous times, people inevitably become twitchy, a sense of self-fulfilling prophecy hanging thick in the air. For the time being at least, the world's premier motor-racing series appears to have stabilized itself, in part due to a recent cost-saving agreement amongst the participating teams. However, as with all good dramas, there may yet be several twists and turns in the story.

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