But Is It Worth It?

I know many have pondered whether the economy will have an effect on the sports world. The answer is yes. Tiger Woods losing his General Motors endorsement is the first of many bad signs to come.

Already there is talk that companies will begin reducing their monetary commitments to Sports. The 2012 Olympics in London are scrambling to find top-tier sponsors. Jerry Jones, one of sports most savvy owners, still hasn’t found a namesake for its $1.3 billion dollar stadium opening next year. Citi Field, the Mets new home, is under heavy scrutiny for holding on to the naming rights despite a recent bailout making for some bad publicity. Sports franchises have leaned on corporate advertising for revenue but that will presumably start to change.

If ad revenue is going to be cut then you have to make sure tickets are selling. This all of course have forced franchises become more creative. The New Jersey Nets, for example, gave 10% of your season ticket money back in the form of a gas card. Many teams present a cause to reason you into buying a ticket. The New York Islanders have proceeds from the ticket purchase go to organizations like Island Harvest.

Although making sure the seats are filled is an attempt to offset advertising loses, changing the production of the game may be worth looking at too.

College Bowl games for instance have been reluctant to move into a playoff system simply because of the ad revenue it earns. If sponsorship dollars begin to decrease and the expected earnings aren’t there anymore it will inevitably have to move to a playoff system in order to concentrate its advertising dollars.

As the economy weakens, expect sports teams to feel the chill for a while.