Jonathan Last, writing in The Wall Street Journal, asks, "Are Pro Sports Too Big to Fail?" As our economy continues to falter, professional sports leagues and teams are starting to get hit in the gut. The long-held notion that sports is "recession proof" is being shattered. Teams are laying off front-office staff, revenues are declining and sports sponsorships are drying up. Writes Last:
"America's obsession with sports has created a nearly continuous 90-year boom. There have been down moments, but neither the NFL nor MLB has ever contracted, i.e., eliminated, a team -- the ultimate sign of failure. The National Basketball Association hasn't eliminated a franchise either, since it took on its modern form in 1976. Smith College sports economist Andrew Zimbalist says that the success of pro sports 'has been linked to the underlying success of the economy. As the economy falters, that will tend to drag down pro sports.' But Mr. Zimbalist doesn't see any of the Big Three franchises going under, although he allows that the National Hockey League could be in danger of losing a team or two."
I agree with your conclusions, but I wonder if the situation is actually worse than the league bosses are willing to acknowledge. I think it is a little ridiculous for the powers that be in the sporting world to blithely assert that they are untouchable in this economy. In my opinion, if the downturn continues to worsen, there may actually be a few franchises that either fold or are sold at bargain basement prices at the brink of insolvency.
Here's my 2 cents worth, humble though they may be, in an installment of the Gate21.net multi-part series on the economic pressures currently bearing down on the sports world (from the perspective of a fan of SEC sports):
http://gate21.net/2009/02/03/the-cost-of-sports-part-2-jerry-maguire-and-professional-sports/
Posted by: lawvol | February 04, 2009 at 11:55 AM