Everyone knows that we are all in a financial crisis. Too much credit given has contributed to this and, apparently, the lack of credit will make it tougher to get out of it.
The sports world has pretty much been tied with this thinking. Over the last decade or so, franchises have abandoned their fan bases and courted corporate dollars. They longed for it so much that teams demanded newer stadiums and arenas that were chock full of luxury suites that they can sell to big businesses. Tickets close to the field of play were being bought up by people with business interests.
Because of the fact that companies were willing to throw a little more cash out there, the prices went up. Soon, the regular joes were priced into the not-so-cheap seats or out of the stadium altogether.
It wasn't just tickets. Teams craved that money to name their stadium. No more Salt Palace ... we need the Delta Center (which is now renamed after a waste disposal company). No more Shea Stadium ... we get Citi Field. Ya know, one of those banks that needed our tax dollars to bail them out. Who cares? Remember that Minute Maid Park was once Enron Field.
Now the economy is bad and companies are tightening up their expenses. One of the first things to go are these sports deals. Endorsement deals aren't as exorbitant; luxury boxes aren't being renewed; sponsors are really gripping about every dollar they spend.
So teams and players who were counting on the money just to keep getting bigger year after year are now scared about what the future will bring. Just look at the NBA trade deadline that ended yesterday. There were more trades made for financial reasons than ever. Teams wanted to get under that dreaded luxury tax line as well as trying to get cap-friendly as the salary cap will most likely shrink in the next two years.
It isn't just the NBA. NFL and MLB teams are offering up shorter deals. They might be alright now, but those contracts that balloon down the road could really damage some franchises.
And, of course, we fans get screwed here as well. Many of our teams will be willing to give up on high achievements if they can find a way to weather the storm. I mean, if you see that your franchise may need to go into a rebuilding stage, wouldn't this be the best time to do it? So fans of various teams will watch their stars dealt elsewhere.
Fans have looked past lots of this stuff to stick with their team. We go to FedEx Field and get bombarded with advertisements from Pepsi to credit card companies to insurance. Or where I should go for my banking needs ... which when I get there, they will deny my loan app. I just wanted to see a game, not decide which brand of car I will buy next.
The ugly truth is that no sports team should actually struggle financially ... in theory. While there is a lot of money involved in the logistics or running a franchise, it is the labor costs that has the most impact. You think that if every player took a 20% decrease in their salaries that it would make for and easier transition until, hopefully, the economy rights itself? It worked a bit in the NHL when most players took a paycut just to keep the league alive.
Yeah. Don't hold your breath.
The sports world has pretty much been tied with this thinking. Over the last decade or so, franchises have abandoned their fan bases and courted corporate dollars. They longed for it so much that teams demanded newer stadiums and arenas that were chock full of luxury suites that they can sell to big businesses. Tickets close to the field of play were being bought up by people with business interests.
Because of the fact that companies were willing to throw a little more cash out there, the prices went up. Soon, the regular joes were priced into the not-so-cheap seats or out of the stadium altogether.
It wasn't just tickets. Teams craved that money to name their stadium. No more Salt Palace ... we need the Delta Center (which is now renamed after a waste disposal company). No more Shea Stadium ... we get Citi Field. Ya know, one of those banks that needed our tax dollars to bail them out. Who cares? Remember that Minute Maid Park was once Enron Field.
Now the economy is bad and companies are tightening up their expenses. One of the first things to go are these sports deals. Endorsement deals aren't as exorbitant; luxury boxes aren't being renewed; sponsors are really gripping about every dollar they spend.
So teams and players who were counting on the money just to keep getting bigger year after year are now scared about what the future will bring. Just look at the NBA trade deadline that ended yesterday. There were more trades made for financial reasons than ever. Teams wanted to get under that dreaded luxury tax line as well as trying to get cap-friendly as the salary cap will most likely shrink in the next two years.
It isn't just the NBA. NFL and MLB teams are offering up shorter deals. They might be alright now, but those contracts that balloon down the road could really damage some franchises.
And, of course, we fans get screwed here as well. Many of our teams will be willing to give up on high achievements if they can find a way to weather the storm. I mean, if you see that your franchise may need to go into a rebuilding stage, wouldn't this be the best time to do it? So fans of various teams will watch their stars dealt elsewhere.
Fans have looked past lots of this stuff to stick with their team. We go to FedEx Field and get bombarded with advertisements from Pepsi to credit card companies to insurance. Or where I should go for my banking needs ... which when I get there, they will deny my loan app. I just wanted to see a game, not decide which brand of car I will buy next.
The ugly truth is that no sports team should actually struggle financially ... in theory. While there is a lot of money involved in the logistics or running a franchise, it is the labor costs that has the most impact. You think that if every player took a 20% decrease in their salaries that it would make for and easier transition until, hopefully, the economy rights itself? It worked a bit in the NHL when most players took a paycut just to keep the league alive.
Yeah. Don't hold your breath.
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