“We are still wary.” Those words, from the CEO of a sports-sponsorship conglomerate, sum up what many college and pro-sports executives seem to be forecasting for the coming year, according to an article in this week’s SportsBusiness Journal.
Although many are optimistic that ticket sales, donations, and other revenue will continue to rebound from the hits they took during the recent recession, a number of leaders are apprehensive.
“I’m not sure that the recession is over,” said David Stern, commissioner of the NBA, whose attendance has fallen in certain markets. Others say high unemployment figures and a reluctance of companies to hire have led to greater uncertainty among fans.
The glut of games–35 bowls this season, with many suffering from empty seats–shows that the handful of super-wealthy college programs may be the only ones truly immune from economic pressures.
Marketers are spending again, and TV advertising and sponsorship are reportedly back to pre-recession levels, SportsBusiness Journal reports. But many companies and consumers seem more willing to pay as they go, rather than to commit to long-term deals.
When the recession hit, some companies cut their premium seats, the magazine says. Now, even with an improved economy, corporations are reluctant to fully reinvest.
Sponsors are looking for new ways to conduct business. “The questions we’re getting now are about how sponsors can improve the game for fans and get rewarded, and how sponsors take advantage of their investment with a sports property in a virtual/social media kind of way,” said Casey Wasserman, founder of the Wasserman Media Group. “Everyone’s looking for those answers.”
2 Responses to Athletics Leaders Have Doubts That Revenues Will Improve
11229250 - January 7, 2011 at 12:08 pm
The cost to attend major college and professional games is prohibitive for many. The recession may very well have caused people to look for “entertainment” that was more affordable or to stay home with less discretionay income available. Many found that they could live just fine without it. Also, more and more people find it difficult to relate to athletes at any level. So many great college athletes play a year or two and leave school. Professional athletes have little loyalty to a team, so the fans loyalty has become less as well. A fall off in fan support should not be a surprise. In fact, it is more surprising that the fall off has not been greater. By the way, I love sports so I’m not just being critical of sport in general.
sand6432 - January 8, 2011 at 12:51 pm
As a resident of the Dallas area, I’ve been eager to see the Cowboys Stadium, but reluctant to fork out the amount of money it takes to attend a normal Cowboys game. So, instead, I took advantage of the high school state championships being played there to attend, for a total cost of $15, which included sitting anywhere in the stadium and watching up to three full championship games in one day. Now there’s a bargain! Some 40,000 others attended as well, perhaps including a number like me who would not think of paying to see a regular Cowboys game, which I can watch on TV anyway.