Logo Design Guru

Professional sports teams feeling the pinch from the struggling economy

By Tim Fraser

Over the years, many people have viewed the world of sports as recession-proof, though few could have envisioned the economic crisis that the U.S. has experienced in recent weeks. Now sports leagues and organizations are being forced to make tougher decisions in order to keep up their bottom line.

Those leagues and franchises are looking to save money in the upcoming months through multiple avenues. One way will be to freeze or even lower ticket prices in hopes of maintaining affordability for fans to continue attending their games. According to Bloomberg, prior to the start of the World Series, the San Francisco Giants, Seattle Mariners and Cincinnati Reds had all announced they had frozen the cost of tickets for next season. A week later, the Houston Astros announced they would be freezing ticket prices as well.

"We felt it was important to keep ticket prices at the same level for our fans," said Astros Chairman and CEO Drayton McLane said in a statement. "The economy has put a strain on this community and the nation, and the support of our tremendous fan base is critical to our success. Houston has become a baseball town because of the passion and intensity of Astros fans. During this difficult economic time, we believe that freezing ticket prices is a way that we can help ease the burden while allowing our fans to continue to attend games at Minute Maid Park and cheer on their favorite team."

In only its second season at their new ballpark, the Washington Nationals announced they would be lowering prices on tickets in certain sections. As will the two California baseball teams, the Oakland A's and San Diego Padres.

In the NBA, Commissioner David Stern announced that the league would be laying off about 80 employees to help counteract financial losses.

NBA Hall of Fame player Charles Barkley recently implored teams to freeze their ticket prices, as well as other promotions, to keep fans happy and coming to games.

"You have to be realistic. Clearly we're in a tough economic situation," Barkley said to Bloomberg Radio. "If the owners had any smarts they'd say, 'We're not going to raise season tickets and we're going to put a freeze on tickets for this year and probably next year because this thing is going to take more than a couple months to fix.'"

In addition to the prospects of slowing ticket sales, many are predicting teams to be looking to dump bad player contracts, rather than signing big name free agents to large contracts.

"We're not just competing for people's entertainment dollars anymore," said Brett Yormark, chief executive of the New Jersey Nets, told the Wall Street Journal. "We're going up against milk and orange juice."

AddThis Story to Your Favorite Social Bookmarking Site!

Comments

All comments are subject to TicketNews' community rules.

Post new comment +

Anonymous's picture
 

Phil's picture
Phil (not verified)

And that would be the Golden State Warriors, who came in 1st in the NBA for a change. Only this first represented the largest price increase in the cost of season tickets for the 2008-2009. You should give Robert Rowell a lifetime achievement award for fleecing his most loyal customers, season ticket holders, at a tune of 25% above the previous year's cost.

How did he pull this off? By forcing existing season ticket holders to re-up back in March 2007 (before the season was even over!) --- or risk re-upping at an even higher rate. At that time, the expectation of many fans was that Baron Davis would be on the team. Of course, Baron opted out and Rowell himself vetoed a reasonable extension that Baron and the Warriors' GM, Chris Mullin, had agreed to in principle.

The reason given, and I quote Mr. Rowell on this "Salary Protection is our #1 priority."

That's not something fans want to hear from a team executive that just discarded your franchise player. Further, that's not even a legitimate argument that could be made, especially when your team doesn't even make use of existing salary cap flexibility (the Warriors failed to exercise a $10 million trade exception they received from the Jason Richardson-Brandan Wright trade).

I think it's great that other leagues, such as MLB, are showing particular sensitivity to their fans by freezing prices.

Warriors management, on the other hand, has decided that the best course of action in dealing with this tough economic climate is to again put a shotgun to Warriors season ticket holders and move up the renewal period for next year's season tickets to, get this --- JANUARY-FEBRUARY!!

Warriors Basketball. Where Amazingly Bad Management Happens.

Anonymous's picture
Anonymous (not verified)

Welcome to the World of Ticket Brokers PART-TIMER!! That is what happens to part-time brokers chasing the waves NOT setting a foundation. That's the business you have your ups and downs. And this year and next is going to be down. I bet about 50% of the full brokers and 95% of the PART-TIMERS will go BK withIN the next 12 months. The main reason is because of the (give away or part-timers) brokers charged tickets on there CC Cards to the limit and now have to pay 25% interest on the cards and are now GIVING THE TICKETS Aways. PART-TIMERS ARE THE REASON THIS INDUSTRY IS GOING DOWN.

Anonymous's picture
Anonymous (not verified)

When the leagues like the NBA are so greedy - You use to be look highly upon if you had season tickets. Now you look like a sucker!

Fan of Don's picture
Fan of Don (not verified)

Last time I looked this was a free country.......nobody put a real gun to your head and forced you to re-new season tickets.

You re-newed because you wanted to re-new. Otherwise, you wouldn't have re-newed.

Don't blame the Warriors owner just because he made a smart business move.......and you got suckered. He won.....and your stupidity made you lose. Deal with it.....but don't complain.

marketer's picture
marketer (not verified)

When folks get suckered the NBA looses

DreamTemplate - Web Templates
STAY CONNECTED

Subscribe to the weekly TicketNewsletter.




Subscribe to the Discount Theater Newsletter.



Month of April 2012

  Seller Score
1     Ticketmaster.com 31.21
2 StubHub.com 15.02
LiveNation.com 8.10
4 Eventbrite.com 7.50
5 Tickets.com 6.05
6 TicketsNow.com 3.74
7 TicketLiquidator.com 3.59
8 TicketNetwork.com 2.57
9 Goldstar.com 2.28
10 ETix.com 1.81
11 Vividseats.com 1.52
12 TiqIQ.com 1.23
13 TicketWeb.com 1.17
14 Telecharge.com 1.15
15 BrownPaperTickets.com 1.10
16 TicketFly.com 0.93
17 EventTicketsCenter.com 0.87
18 Tix.com 0.82
19 SeatGeek.com 0.76
20 TicketCity.com 0.76

Subscribe to this feed

Ticket Platform
$7.49.com at Go Daddy GoDaddy.com - 180x150