Professional Sports and Our Economy

In the blog, “How the economy is Affecting Sports: Corporate Sponsors” by Ross Liberati, it talks about how major sport industries such as NASCAR and the NFL are doing poorly due to the decrease of sponsor involvement from other corporations since the fall of the economy. A main part of NASCAR is corporate sponsors, they are what enable the sport to continue as well as play a major role in the culture of NASCAR. As the economy took a downfall, so did NASCAR.Many  workers were laid off, ticket sales hit a big downturn, and the loss of major sponsorships caused many teams to merge together because they couldn’t survive alone.  Liberati mentions, “Even the biggest NASCAR race on the planet at Daytona International Speedway struggled selling tickets. Prices had to be reduced for thousands of tickets in order to sell out the race.” Liberati continues by discussing the effects the economy has had on other sports such as the NFL. More and more corporations are finding that they can no longer sponsor major sports teams by building huge state-of-the-art stadiums and sport centers because it is too costly. In the NFL world, naming rights has become a big issue. As the need and want for more stadiums and sports centers continued to grow, there was no one who is willing and able to afford it.  What was once something that every company begged to do as a marketing strategy, is now something that most are no longer able to financially support.

 After reading this blog, I could help but think about the many strikes and lock outs that many sports have been enduring. Recently The NFL underwent a major lockout that worried many fans. There was a giant scare that there was going to be no 2011 NFL seasons. If this were to occur (it was very close to happening) not only would there be millions of unhappy fans, but the economy would suffer greatly impacting millions of people. In a recent CBS artcle, “Economy Can Take a Hit with NFL Lockout“, James Cochran stated, “It’s like an earthquake – there’s a ripple effect out to other people, other parts of the region, You can’t really assume the impact is limited to the area around the stadium. You feel the shock everywhere along the way. It may not be the same shaking as at the epicenter, but you feel it.” The article states that on average there are about 3,739 people working every game. Not only would the many workers, who work at each stadium be affected, but so would the many other businesses that benefit from the games, such as the local bars and restaurants that surround each stadium, each franchise’s accounting teams, the local highschool club that work in the concession stands, etc. I found it interesting to compare the two ideas because in Ross Liberati’s blog, he discusses how the economy effects the many different professional sports, but in instances such as the NFL lockout or the recent NBA strike, it shows that these sports effect the economy as well. The relationship between sports and the economy goes two ways, where one needs the other to survive.

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5 Responses to Professional Sports and Our Economy

  1. tpm011 says:

    Another big reason for the disappointment of Lebron leaving Cleveland was the economic impact he had on downtown Cleveland. Lebron brought in an absurd amount of money for Cleveland businesses because for home games people would go out on the town and go to restaurants, pay for parking. This even created jobs for parking attendants, clean up crews, and policemen.

  2. mcardinute says:

    I feel that professional sports plays a positive role on the economy. Having these huge stadiums being built nationwide provides jobs. A whole lot of jobs to be honest. These jobs include things that allow fans in their local community to attend and enjoy the game while at work. It’s not like they have to go work in a cubicle and be miserable all day. These jobs most likely bring joy to the people who are working them and in turn lowers the unemployment rate.

  3. KCasty says:

    I think this is a very interesting blog topic to re-broach. The athletics industry is not one that is often discussed with regard to the current economic situation, which is strange because it really does provide so many jobs, from vendors at sporting events, to referees and the players themselves, to name just a few of the many. While I do not believe this is the most important industry to focus on by any means, I do believe that athletics are an important part of our culture and our everyday lives and that they allow us to relax and come together in communities and the country as a whole. Therefore, I think it is important to keep a close eye on the athletics industry through the economic downturn to make sure it stays afloat and intact, not only for our entertainment, but for the thousands, or millions even, whose lives are invested in it.

  4. knriggins says:

    I like the idea of linking the sports industry to the economy. I wanted to touch on what Ross and Katie said in the original blog about occurances like the NFL lockout and recent NBA strike having an effect the economy. During the NFL lockout and during the Federal Budget Crisis, there was no doubt in my mind that a compromise would be reached. It amazed me how volatile the market was particularly during the Budget crisis. Maybe I have too much confidence in people. But during the Budget crisis and the NFL lockout I felt like everyone was just waiting it out. There was no way the NFL was going to cancel the 2011 season because they didn’t want to meet player’s demands. And I didn’t believe there was any way the parties would just agree to disagree on the budget. I feel like when it comes down to the deadline, people are able to figure something out.I know that wasn’t really the point of the blog, but this sparked my interest because I feel like the general public wouldn’t agree with me.

  5. Cander says:

    This reminds of a situation happening in my hometown of Columbus where the NHL team currently has an very unfavorable lease, which has caused them to bleed money, but the area they moved into literally changed from nothing into the nicest area of town. Essentially the city is going to change the terms of the deal to keep the team in town and part of the main argument is economic development ( for background info). However, if you ask Professor Krohn (who I do not know),, he argues that this is probably a false premise.

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