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.