The current economy has affected many industries. Charles Davidson, a staff writer for EconSouth wrote an amazing description of how the recession has affected the sports business industry. In his article he explains how sports fans addiction has kept the business cost-effective while unemployment has risen. He explains how even in a recession some sports in certain regions, specifically the south, still attracts sports fans. This region holds a reputation of having an unreserved love for sports. In the article Charles states that, “Southerners put their money where their passion is”. According to Street & Smith’s SportsBusiness Journal in the year of 2007-2008 the Southern Eastern Conference (SEC) had five of the top ten revenue producers in college football collectively totaling $303 million dollars.
Organizations such as the SEC, MLB, and the National Football League (NFL) have experience hardship due to the economic being down but they’re hardly threatened by it. The less established leagues and teams have felt it the most. In August of 2009 the Arena Football League (AFL) folded. Some minor league hockey teams were shutdown as well as minor league soccer teams in 2008. NASCAR has fallen victim to tough times also with high gas prices, rising unemployment, and economic uncertainty. Like other leagues they have tried lowering ticket prices and other to increase attendance.
The strain of this economy has had a devastating effect on the Sports Business Industry. Industry executives from Turnkey Sports Entertainment and Street & Smith’s SportsBusiness Journal conducted a poll of 1,100 sports in 2008. The executives found that a third of their company’s had laid off staff, while two percent stated that they had closed offices. Many minor-league professional teams have gone under and attendance for NASCAR races, Major League Baseball (MLB) games, and the games of some profession teams are down. Ticket sales aren’t what they use to be and have declined for a number of pro teams and major colleges. Our down spiraling economy is solely responsible for these events.
The decrease in attendance for sports facilities is an issue that has Facility Management searching for new ways to get fans back into the stadium. Due to the economy tickets are just not selling and stadium are not being filled. This has a trickling down effect targeting endorsers, food & merchandizing, sponsors, and every other aspect of a sporting event. People are focusing the bulk of their money towards high rising gas pricing, bills, and saving. Most sports are readily available for the consumer to access with the click of their television remote. In a down spiraling economy, why would sports fans want to leave the comfort of their home to go to the game that’s full of expenses?
A way Facility Managers could interest more fans to come out to support is by lowering the total expenses from ticket prices, parking, food & beverages, to sports apparel & merchandise. With traveling cost, gas, and hotel pricing so high plus the total expenses to attend the game it’s becoming a stressful event to plan for many families, so they’d rather just watch the games at home. Another way Facility Mangers can attract fans is by marketing the actual experience of attending the game. Many sports fan don’t value the experience of attending the game, the tailgating and the interaction with sports enthusiast alike. If facility management puts an emphasis on the whole experience portraying to fans that the in stadium encounter is worth wild it could gain fans interest. Ryan Knapp a Manager of Digital for the National Soccer Coaches Association of America (NSCAA) says, “My caveat with it is if the fan experience becomes so interactive while you are home, will eventually we run out of reasons to actually attend the games live.” The use of different promotional tactics can prove to be of use also. The Facilities Management can use ploys like sweepstakes, two for one-ticket specials.
