Sports and the economy — Will fans keep coming?
Economic trouble pinching leagues, but Utah franchises say they are doing fine
Wall Street, however, isn't the only place experiencing financial struggles. Even before the current crisis emerged and stock markets plunged, the professional sports world was beginning to realize a trickle-down effect of the nation's wallet woes.
While the Utah Jazz claim to be on solid financial ground, the NBA is downsizing its work force and shut down a West Coast office. Attendance at Major League Baseball games has declined four years in a row, and the league is experiencing a decrease in merchandise sales. Even the NFL, the country's top sports dog, is feeling pressure on its bottom line.
And that could be just the beginning of the budgetary difficulties.
Though America's top professional leagues still bring in billions of dollars — and the David Sterns and Bud Seligs of the world won't be in the soup-kitchen line anytime soon — the business of big-league sports is not exempt from the current economic slide.
That much is evident from the NBA's decision to cut at least 50 of its 800 U.S. jobs and to shut down its Los Angeles office.
After three seasons of unprecedented attendance, the NBA is anticipating a 1-2 percent reduction in full season-ticket sales for this upcoming year.
NFL owners, who will pay $4.5 billion in player salaries this season, opted out of the league's labor contract in 2011 instead of 2013. NFL commissioner Roger Goodell said owners recognize the current deal, which has players earning just under 60 percent of all revenues, "doesn't work long term for us." He also recently sent out a memo, admonishing his staff to keep costs under control and to search for revenue to ease budget pressure.
Other pro franchises in the Beehive State — the Salt Lake Bees, Utah Grizzlies, Utah Blaze and Real Salt Lake — are feeling similar pressure to various degrees or at least recognize a potential threat exists to their financial well-being.
The Jazz certainly aren't exempt from financial strain, but they couldn't have picked a better time to re-emerge as championship contenders. Economic waters are choppy, but winning makes for one heck of a life jacket.
This past offseason — despite price increases and signs of stock-market slippage — Utah managed to renew more than 90 percent of its season-ticket commitments from 2007-08, which included another Northwest Division championship and a Western Conference semifinal appearance.
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