Recession Starting to Take Toll on Sports

It is inevitable that the extent of the economic downturn being experienced across the US would impact sports, both professional and amateur. In the last few days, reports are emerging of where sports may suffer, or even be eliminated or die. In college sports, it has been discussed that San Diego State University drop its football program as the State of California is in dire financial straits with the wolves already through the door. Governor Schwarzenegger has already told universities and colleges throughout California they must make severe cuts, and he has suggested sports as an area for doing just that, among others. The loss of the San Diego State football program would be a serious blow to the Mountain West Conference.

It would not be surprising to see a number of athletic programs on the university and college level around the nation be eliminated or de-emphasized with a reduction in expenses, scholarships, and prominence. This may not be such a bad thing given the over emphasis of college athletics at the expense of more worthy and merited pursuits on the academic side as well as with the recent pronouncement that getting a postsecondary education is increasingly becoming out of reach for most Americans. There are 119 schools participating in Division 1 -Football Bowl Series - level football, and at least two dozen to thirty of them are already in peril of not being able to continue due to inadequate attendance, revenues, and support. The economic collapse may knock a number of them into being eliminated or downscaled to a Div FCS or Division II level program which requires far less money to operate.

On the professional side, today we saw the declaration of bankruptcy of the Tribune Company, at least somewhat due to the ineptitude, arrogance, and greed of one Samuel Zell. The Tribune Media Corporation is the parent company of the Chicago Cubs. This financial vice-grip will result in the Cubs being less aggressive in improving their club and being more financially sensible. Too bad the same won't be happening to the Yankees and Dodgers.

Plenty of MLB clubs have already frozen their ticket prices and are showing a concern about a likely downturn in attendance, sponsorships, and revenues from media. '09 may see a different kind of year than most clubs have experienced since the boom in new costly luxury suite and box laden stadiums began in the late '80s and early '90s. A lot of those fancy and expensive seats and suites are going to be empty and vacant more often that not this upcoming season, and the same will be true with the "cheap seats" with unemployment rising and the public acting extremely cautious towards discretionary and unnecessary expenses.

The National Hockey League is feeling the impact of the economic crisis acutely, and the financial well being and very existence of several clubs appears to be of a concern. The Phoenix Coyotes made a ridiculous decision in 2003 to build an arena in a distant suburb far away from downtown and adjacent areas where fan interest would be its greatest, and that choice is now having repurcussions. It would not be surprising to see the Coyotes go bankrupt and be seized by the league, with a relocation to another city (Seattle, Portland, Toronto, Houston, Kansas City ?) occuring before summer. Other clubs in serious peril include the (Miami) Florida Panthers, Nashville Predators, Tampa Bay Lightning, Atlanta Thrashers, (Raleigh) Carolina Hurricanes, New York Islanders, St Louis Blues, and Columbus Blue Jackets. Circumstances like what is facing the Coyotes could happen, very quickly and suddenly, for one and likely more of these clubs. It is not inconceivable to have the NHL go through a contraction, dropping from the 30 clubs now to perhaps as few as 24. In the serious downturn of the mid 70s, the NHL saw the loss of two franchises in Cleveland and San Francisco.

The National Basketball Association is in similar straits to the NHL, and while the league and its clubs are keeping quiet about their circumstances, a similar scenario to what is being seen in the NHL is very likely with perhaps as many as 4-6 clubs being forced into bankruptcy in short order and becoming defunct, shrinking the league. Clubs that may be facing that scenario include Charlotte, Memphis, Denver, Utah, Toronto, Milwaukee, Sacramento, the Los Angeles Clippers, Phoenix, Cleveland, and New Jersey. The league is already on shaky ground with a pronounced downturn in fan support and interest in the last few years, and this economic collapse is probably going to be the straw that breaks the camel's back for several fragile clubs.

The National Football League seemingly has enough resources and strength to withstand this economic downturn, but a scenario that becomes close to worst case may eventually imperil some clubs in the league, and the looming labor battle could result in a shutdown of the league within the next few years could be deadly for some clubs if the stoppage is prolonged, as is currently feared by some. The NFL did announce a staff cutback of about 150 jobs or more than 10 % of its employees on Tuesday 9 December, and some see this as a sure sign the economy is in the worst state possible.

One professional league has already been claimed by the economic collapse --the Major Indoor Lacrosse League . And it now appears another is going to go by the wayside as well. The nearly 25 year old Arena Football League is reportedly going to call it quits officially within a matter of days.

The four major professional team sports leagues currently have a total of 122 clubs. It would not be shocking to see that number pared by 20 % or more within the next 6 - 10 years.

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