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As a temporary replacement it might work for a while, but in the long process promoters and organizations who are handling each events should think for much better ideas, they can't risk the lives of people but with better and responsible protocols they can allow half of the fans to attend implementing all the safety measures that the government are requiring them.
It's still best if you are hearing real people cheering the teams and not just devices that produce fake actions,.
Even the cheering for people is not too many, but it can satisfying the players and the teams because they see a real sound from the people.
Maybe the replacement is just for testing before they invite the real people to come to the stadium, and they will want to see how good the result.
If they think that all of the protocol procedures is work fine, they will try to invite a limited number of people, and they use social distancing protocols in every chair.
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That's the best that they can think for now until the covid19 is gone forever. They could still earn from the broadcast and gain more advertisers and sponsors through it. Settling the tickets and forgetting it as an additional revenue per event.
They could earn more and adjust the rates for their advertisers without compromising the safety of their players. I don't see any problem making an appearance of their fans in the form of virtual.
I am afraid that Covid-19 will be with us for a while until the scientist can discover the vaccine.
The important thing here is how the player can give the best performance during the pandemic, and how the sports promoters can get the revenue again after they stop the event.
It is no problem to make an appearance from the virtual audience, but that will need time to set it up while the event will start soon, so hopefully, the setting will be finished at the right time.