LadyStanley
Registered User
Sports economists weigh in on how another recession could...
Paywall. Recent "leading indicators" say that there will be a recession in the next 18-24 months (start), and probably world wide. But others don't see it that way. But none KNOW how soon and/or how bad it could get. Sports a discretionary spending category, so fans could tighten their belts, buy fewer tickets, perhaps cancel sports packages.
The NHL is carefully watching situation as they are one of the leagues with TV Rights coming up for new deal(s). Others leagues didn't respond to question from reporter.
Used to be that ticket prices were such that folks could go to a game to escape reality. Rising prices in the 1990s mean that it's no longer feasible for fans to head out to a game when their wallet is stretched thin from a recession.
Fewer fans in attendance may lead to a vicious cycle with sponsorship $$s drying up as they aren't getting the bang for their buck/eyeballs to make their investment worthwhile.
Viewing/streaming may not be as much as risk as folks in the arena/stadium for cost, but still could take a hit in merchandising and concessions. And a company may not renew its suite. Good teams may work more as a partnership on ticket sales to retain folks and companies - customer service important.
Definitely something to be mindful of and careful in spending, but no need to immediately panic.
Paywall. Recent "leading indicators" say that there will be a recession in the next 18-24 months (start), and probably world wide. But others don't see it that way. But none KNOW how soon and/or how bad it could get. Sports a discretionary spending category, so fans could tighten their belts, buy fewer tickets, perhaps cancel sports packages.
The 2007-09 Great Recession in the United States saw teams and leagues slash hundreds of jobs. Corporations laid off millions of workers and cut pay and benefits — unemployment peaked at 10 percent in 2009 — while sports sponsorship spending was severely curtailed or canceled. The WNBA contracted a team and reduced roster sizes. Teams across sports froze or reduced prices on tickets and concessions. The NHL’s Phoenix Coyotes went bankrupt. The Arena Football League canceled its 2009 season. IndyCar’s Detroit Grand Prix was canceled.
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Any prolonged economic crisis could exacerbate the ongoing attendance problems for Major League Baseball, college football, and even the NFL. And if a recession occurs in the next 18 months to two years, it would land as labor and media rights deals are being negotiated.
It’s unclear how the five U.S. major leagues are planning, if at all, for a recession.
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The NFL, MLB, NBA and MLS all have national TV deals coming up for renewal or replacement during the 2021-22 time frame.
The NHL is carefully watching situation as they are one of the leagues with TV Rights coming up for new deal(s). Others leagues didn't respond to question from reporter.
Used to be that ticket prices were such that folks could go to a game to escape reality. Rising prices in the 1990s mean that it's no longer feasible for fans to head out to a game when their wallet is stretched thin from a recession.
Fewer fans in attendance may lead to a vicious cycle with sponsorship $$s drying up as they aren't getting the bang for their buck/eyeballs to make their investment worthwhile.
Viewing/streaming may not be as much as risk as folks in the arena/stadium for cost, but still could take a hit in merchandising and concessions. And a company may not renew its suite. Good teams may work more as a partnership on ticket sales to retain folks and companies - customer service important.
Definitely something to be mindful of and careful in spending, but no need to immediately panic.
