Professional and college sports teams face tough times ahead.

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Welcome to the first season of the Los Angeles Jaguars. What about Jacksonville? The city and state cried poverty and neither government would pony up any money for a new facility or even a decent makeover. The people of the city also didn’t come to the games so the Jags left.

Thank heavens that has not happened yet but it could happen soon.

Teams in every professional sport are struggling financially. Part of that is their own fault. They spent too much on players when things were good. Now that the economy has turned down, they are still spending more than they can afford.

They are also notoriously bad marketers. Some teams got a bump in attendance by building a new facility with state and or city help. Those that did got only a temporary bump no matter how nice the new digs were. Within a year or 2 they were back to seeing a lot of empty seats at every game. But in addition to the same old attendance they had a boat load of debt. With the government borrowing so much money, eventually interest rates will have to go up. The debt load teams are carrying will sink them and for the first time even the NFL could find no takers with enough cash to bail out the teams that will go belly up.

The Columbus Blue Jackets of the NHL are a perfect example. They signed a contract when they were created to play in a privately owned arena because public money couldn’t be approved by either the city or state. Now they are facing empty seats and financial hardship because they say their rent is too high. The problem was while the CBJ was building its arena down town, the Ohio State University was also building a new multi-purpose arena on campus just a few miles away. The old OSU arena is also still in use but is empty most of time. The CBJ is asking the government to take over the building so that they can stay in Columbus and get a lower lease. Both the city and state are in much worse financial shape then they were when the building was proposed and are in no position to buy anything more costly than a box of paper clips. The owners of the building are not going to be able to sell the structure because no one is going to buy an arena where the only lessee is threatening to leave.

If things weren’t bad enough both the NFL and NBA face possible strikes/lockouts soon. The NFL will likely survive but the NBA could be devastated by a lockout. The NBA is riding a down wave of popularity and could suffer like the NHL did with a significant lockout. The NHL lost its major TV deals and is now stuck with games on the Verses Network.

Both leagues are trying to reduce the percentage of revenue dedicated to the players. The NBA is also struggling with guaranteed contracts. The NFL is trying to avoid the mistakes of the other leagues like guaranteed deals. The US financial situation is so bad that the NFLPA has come out in favor of a salary cap which just over a year ago they said they would never allow to be part of any new Collective Bargaining Agreement. They don’t like the idea of capping the amount a team can spend but desperately want to establish a minimum that a team must spend on players.

College teams are struggling as well. At Ohio State the basketball team was in a position to insure a share of the Big 10 title. And yet there were more than 1,500 empty seats hours before the tip off. Schools that have had no problem increasing the tuition 5 times the rate of inflation will drop any sports program that is not self supporting like it was a stolen knockoff Prada purse.

So what will happen?

Professional teams will go out of business. Players on those rosters will be distributed to the teams that survive. Several NBA teams will wither on the vine if they lose the key player upon which the attendance is based. The Cavs for example will be in serious trouble financially should LeBron James leave.

Even the NFL has teams that are in serious danger of disappearing. Teams like the Bills, Jaguars, Panthers, and Rams regularly fail to fill their stadiums. When the TV money goes down, as it will have to if the US economy continues to struggle, those teams will find it hard to make payroll.

There is also a down side for any business that depends on attendance at games for revenue. They will be hurt in cities that keep their teams. Where teams are gone the businesses that depend on them will be gone as well.

So what can fans do? Perhaps a better question is what should fans do? There is not much fans can do. However, I have some suggestions.

For Pro or college teams that are doing their best to compete:

If you can afford to go to games and your team is providing quality entertainment, do it. That is great. Even if you can’t afford the tickets you can call their radio and TV sponsors to thank them and tell them how much you appreciate their support of your team. Let them know that you will use their products or services because they support your team. Then call the team and the radio and TV stations that carry their games. Let them know that you called the sponsors to thank them. Thank the team for doing the right thing and the station for carrying the games. Call your sports call in programs and suggest the other fans do the same thing. It will help insure that the stations will continue to carry the games and the stations and team will continue to enjoy success.

For Pro teams that are just going through the motions or are incapable of competing due to bad management or ownership:

If you find that the team is not showing any interest in becoming competitive, call the team and let them know why you aren’t buying their tickets. Call the stations that broadcast the games and let them know that the community needs the station to put pressure on the team to get it’s act together. Call the key sponsors to ask them to ask the stations to put pressure on the team to do better. Tell sports radio call in programs what you are doing and ask the other fans to do the same.

For college teams that are not trying to compete:

Colleges react to just one thing–money. Again the stations carrying the games are a pressure point just as the pro teams above. But there is one other thing that can have an effect–Donors. Call your sports radio programs and suggest that donors contact the presidents of the college to tell them to give their sports more emphasis. That will not work often but when a donor calls a president, he or she gets attention. A few big dollar donors calling will change the attitudes of the coaching staff and the culture of the team.

Those fans that become proactive will find that things in sports can change based on public opinion. Too bad things don’t seem to work the same way in Washington D.C.

That’s what I think. Tell me what you think.



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