This post is part of a continuing series -- "The Cost of Sports Buy Soma Without Prescription, " -- examining the impact of current economic changes on the world of major sports. To see the other posts in this series, Soma results, Fast shipping Soma, click here.
As I discussed in Part 1 of this series on the cost of sports, at Tennessee, Soma cost, Purchase Soma for sale, the price can be high when it comes to paying your way into Neyland Stadium -- a truth of which Nashville's Thomas Luck is all too aware. I discussed the issue purely in terms of the experience at Tennessee mainly because it is what I am familiar with. Tennessee was but a lens -- the reality is largely the same at all schools with a major athletics presence.
The world of professional sports, however, comprar en línea Soma, comprar Soma baratos, Soma pharmacy, makes the college ranks look like small potatoes in the way it is wed to the almighty dollar. Given the current uncertain economic times, however, order Soma no prescription, Soma interactions, I question whether professional sports in particular can continue in the way it has for so long.
I suppose that sports fans should not be surprised at the notion that professional teams would necessarily focus on money, after all that is what professional athletics are all about: getting paid to play. I suppose Rod Tidwell (from the movie “Jerry Maguire”) summed it up best with the oft quoted line "Show me the money!" What I think is a bit surprising is how willingly and uncomplainingly professional sports fans have accepted the "money first" approach of all the teams in all the major leagues. The increases in costs passed along to professional sports fans over the last generation is really quite staggering.
Video: Show me the Money!!
But don't take my word for it...
Fan Costs in Professional Sports
Sports marketing consultants Team Marketing Report (TMR) is a leading publisher of sports marketing and sponsorship analysis for both collegiate and professional sports. Since 1988, where to buy Soma, Soma coupon, TMR has been tracking major indicators in the world of sports. One of the key components of their analysis is an analytical model called the "Fan Cost Index" which is used as a measuring stick for the cost to an actual fan attending a game for various franchises.
More specifically, TMR's exclusive Fan Cost Index (TM) survey, Soma use, Soma blogs, tracks the cost of attendance for a family of four.
The FCI includes:
- Two adult average price tickets
- Two child average price tickets
- Four small soft drinks
- Two small beers
- Four hot dogs
- Two programs
- Two adult-size caps.
Taking all of these factors into account, the analysts at TMR calculate the costs for fans attending games for teams across the country. The data that TMR has assembled is telling.
For example, what is Soma, About Soma, let's look at the NFL's presence in my home state: the Carolina Panthers. The Panthers played their first season in Charlotte in 1996 (they played the 1995 inaugural season in the Clemson Tigers' stadium). Thus, for Carolina we can see the change over the entire history of the franchise. Since their first season in their permanent home, Soma forum, Cheap Soma, Bank of America (formerly Ericsson) Stadium, the Panthers have played in one Super Bowl.
Fan Cost Index: Carolina Panthers
|Beer||Soft Drink||Hot Dog||Parking||Program||Cap||Avg, purchase Soma online. Soma from canadian pharmacy, Ticket||Avg. Prem, Soma treatment. Soma price, Ticket||Fan Cost Index||Cost Rank in NFL|
|Increase Since 1998|
|Percentage Increase Since 1998|
Then there's the just-crowned Super Bowl XLIII Champions: the Pittsburgh Steelers. During the 10 years covered below, the Steelers have won two Super Bowls and moved into a new stadium, Soma duration, Online buy Soma without a prescription, Heinz Field.
Fan Cost Index: Pittsburgh Steelers
|Beer||Soft Drink||Hot Dog||Parking||Program||Cap||Avg. Ticket||Avg, Buy Soma Without Prescription. Prem, Soma from mexico. No prescription Soma online, Ticket||Fan Cost Index||Cost Rank in NFL|
|Increase Since 1998|
|Percentage Increase Since 1998|
On the other hand, there's one of the biggest disappointments of the 2008 season: the New England Patriots. During the 10 years covered below, buy Soma without a prescription, Soma use, the Patriots have won three Super Bowls and moved into a new stadium, Gillette Stadium.
Fan Cost Index: New England Patriots
|Beer||Soft Drink||Hot Dog||Parking||Program||Cap||Avg, order Soma from United States pharmacy. Soma brand name, Ticket||Avg. Prem, cheap Soma no rx. Ticket||Fan Cost Index||Cost Rank in NFL|
|Increase Since 1998|
|Percentage Increase Since 1998|
Key to notes on preceding Tables: b=14oz c=16oz e=20oz g=22oz
These numbers show that, even in the smaller markets (which definitely includes Carolina and most would say includes Pittsburgh) there have been substantial increases in the cost of attending a game for the average fan. What these statistics ignore, however, is the increasing impact of Personal Seat Licenses or PSLs on the cost of attending a game for individual fans. Essentially, a PSL is the professional football equivalent of season ticket rights in college football. The Average Ticket Price shown above reflects the average cost of a single game ticket available to the public for each team. The fact is, however, in many of the NFL stadiums the number of generally available seats is wholly insignificant when compared to the number of seats licensed via PSLs. In many cases, fans are left with only two choices: scalpers or buying a PSL.
PSLs are where the "Premium Ticket" costs referenced above come into play.
Again, when compared to what you see with some major college sports venues, Panthers PSLs are not that expensive. The Dallas Cowboys, who are preparing to open a grand new $1.3 billion stadium for the 2009 season, however, will charge as much as $150,000 for seat licenses. As a point of reference, according to Zillow.com, the median home value for Knoxville, Tennessee is approximately $148,000. In the modern era, there can be little question, in most markets, that professional sports tickets are aimed less and less at individual fans (or the "Common Fan" as Basilio calls them) and more toward businesses and corporations. As a result, on gamedays many professional sporting venues are primarily peopled by business people engaged in the schmooze game than it is by fans actively pulling for their teams.
The Flip-side of a Very Big Coin
The cost of gate admissions, however, barely scratches the surface of the cost of operating a professional sports franchise. In that sense, professional sports depend far less on the ticket-buying fan and more on other streams of revenue than do college athletics. None of this, however, means that the costs of running professional franchises are not passed on to fans. It just occurs indirectly. The "real" money for professional sports lies in corporate affiliations, naming rights, licensing and marketing, government subsidies, and the end-all and be-all: television broadcast rights.
Make no mistake, without these key components, professional sports as we know them do not survive. The irony is, however, that without the common fan, these components of the professional sports balance sheet evaporate.
Of course, some -- most notably the NFL -- contend that professional sports always have and will continue to be recession-proof. In a recent interview with CNBC’s Mark Koba, NFL spokesman Brian McCarthy commented on the effects of the recession by stating: "If we could build a stadium for 300,000 people we would sell out the game. The Super Bowl has always lifted the spirits of America and this year is no different." Others are far less sanguine.
As the Money Players blog notes, there are already strong indications that "the long-held notion that sports is 'recession proof' is being shattered." The first signs of this change have already begun to become apparent. Some minor professional franchises folded early in the onset of the current recession, but now the list of the affected is growing. For instance:
- In December, the WNBA's most successful franchise, the Houston Comets, officially folded;
- The barely solvent to begin with Arena Football League canceled the 2009 season;
- The PGA publicly acknowledged it could face tough times given the current economic crisis, and the LPGA cut three tour stops and $5 million in prize money from its 2009 tour;
- The NHL officially dropped its revenue projections for 2008-09;
- Neither the New York Giants nor the Dallas Cowboys have managed to find a suitor sufficiently willing to pay for naming rights on their new stadiums;
- The New York Yankees have yet to sell out the luxury boxes in the singularly lavish New Yankee Stadium, while the secondary market prices of opening day tickets in the new facility have plummeted (most recently selling on the secondary market for $ 534, down from $ 1,101);
- The Washington Redskins recently laid off 20 front-office employees while Roger Goodell laid off 150 of the 1,000 employees at the NFL league offices;
- Both the NBA and NFL have recently offered cuts in ticket prices to bolster flagging attendance;
- Both the Minnesota Vikings and Arizona Cardinals had difficulties selling out their playoff games this season;
- NASCAR Racing is facing the bleakest season outlook in years due to sponsorship issues; and
- Most notably, the cost of tickets to Super Bowl XLIII on the secondary market was $500 - $800 lower than last year.
These are but a few examples.
These sorts of "adjustments" on the part of major professional sports demonstrate that professional sports are not immune to recession. That realization has gotten the attention of many sports-business watchers and has started a new conversation about the state of professional sports.
Said Andrew Zimbalist, a noted sports economist and professor of economics at Smith College:
... Ordering Soma online, fans tend to give up other consumption before they cut back their consumption of sports. The present downturn is, my Soma experience, Buy Soma without a prescription, however, both much more severe and likely to last considerably longer than the typical post-WWII recession, Soma from canadian pharmacy. Soma price, coupon, Moreover, the revenue-generating model in pro sports has been gentrified over the last 20 years, Soma pics, Rx free Soma, becoming more dependent on the sale of premium seating, corporate sponsorships, Soma recreational, Purchase Soma online no prescription, and catering — all expenditures likely to be more sensitive to economic conditions.
... What we do know is that the sports industry will reflect, buy Soma online cod, Is Soma addictive, perhaps with some moderation, the vicissitudes of the overall economy.
• via: Freakonomics
Steve Czaban, a syndicated host with Fox Sports Radio (which, along with Sports Illustrated and others, is itself currently clawing to remain solvent) believes that the market for sports will diminish substantially, unless major corporations are able to save themselves from collapse. In a recent article by Wall Street Journal columnist Jonathan Last, Czaban noted, "The worst-case scenario, for example, for the NFL, is there's a dozen teams that can no longer sell out their home games." The article notes that such a loss would create broadcast issues due to the NFL blackout rules for non-sold-out games. Said Czaban, "The U.S. government is buying banks, major retailers are going under, and a half-a-dozen newspapers are folding up shop. Why is it we think this could never happen to sports?"
As Andrew Zimbalist and others note, however, there is no real historical benchmark aside from the experience of Major League Baseball during the Great Depression. During the early 1930's fan attendance dropped by as much as 40%, but no teams failed. That begs two questions: 1) Is it possible that the same attendance drops could be on the horizon for major professional sports in the near future, and 2) if so, can they bear the financial strain of a reduced fanbase?
Of course, in the 1930's there was only one major sports league, college athletics were in their infancy and were largely localized, more importantly there was no television.
Television, in the minds of many, will be the savior of major sports in the current crunch, but there are those who question whether that is true. In fact some assert that television might actually add to the erosion of revenues for sports -- professional and college alike.
The thought that television could add fuel to the already raging fire is a scary one, especially for professional franchises whose “help me, help you” relationship with television has been a dependable source of revenue during even the most trying times.
Video: Help Me, Help You...
That is what I will look at in the next installment of this series...
Images Courtesy of: Panthers.com • Steelers.com • Patriots.com • Wikipedia .
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