Hello readers, bloggers, internet hacks and casual browsers. I am sitting here in my empty apartment after the hardest academic exercise of my life writing about sports, that's right sports. My friends tell me that I have better things to do such as get a job, go to the bar or whatever now that I am 'free' from my law school constraints. However, as we all know, no matter how liberated one may feel, they are never truly free. What is free though is some of my insight on the the world of professional sports. I hope you enjoy reading my postings as much as I enjoy writing them. So....
I have been stuck in books, studied through a hurricane and worked insane nights waiting for the opportunity to give my take on the sports world that I have not been a part of for at least 4 months. One of things that has been stuck on my mind doesn't have to do with batting averages, yards per carry, penalty minutes or assist to turnover ratio. It has to do with the recently declared recession in the United States and how it is and will affect not only the economics of the professional and ameatur sports we enjoy, but also the jobs of the people who are directly involved in the industry whether it be the sausage vendor, ticket scalper, equipment manager, coach or Vice President of an organization. I have seen owners of teams so vastly affected by the ever-shrinking bottom line, that the general managers, coaches and players they employ have shorter leashes than in the past and there is no longer patience for team to get better over a series of seasons whether they be up or down. If an owner (or school, as we shall see) is hemorraging money, the only way to conceivably break even, is to put immense pressure on the people they employ to win NOW. The days of hiring a coach and giving him 3 years to turn around a program are becoming a thing of the past. Barry Melrose of the Tampa Bay Lightning lasted mere weeks before given his walking papers. Owners who are facing serious financial peril need a product that the fans, sponsors, local and national media can embrace as it will equal more merchandising opportunities and then in turn, increased gate attendance at games (especially if one put up tons of cash to finance the building of a state of the art arena or stadium). The NBA has already featured 5 coaching changes within the the opening stages of the 2008-09 season; Washington's Eddie Jordan, Oklahoma City's P.J. Carlisimo, Sacramento's Reggie Theus, Minnesota's Randy Wittman and Philadelphia's Maurice Cheeks have been handed the ol' pink slip by their employers within the past three weeks and we have not even reached the halfway point of the regular season. In the NFL, numerous teams will undergo major organizational reconstruction projects on the personnel side, coaching and the executive positions. If anyone were to ask if this is necessary, I would bittersweetly say yes.
If I were an owner of a pro sports franchise in the current economic environment, I have to be cognizant of several things: 1) If the team is not winning, how do we make a profit? 2) If the on the field/court/ice product does improve, will it positively affect the bottom line? and 3) If I can positively affect the bottom line, can I afford to do it over a 3-5 year period? The answer is no. Look at the recent examples of not only the NBA coaches but the short life span that Romeo Crennel and Phil Savage will have for the NFL's Cleveland Browns or the recent resignation of former Kansas City Chiefs President and General Manager, Carl Peterson. In the NBA, the Minnesota Timberwolves owner Glen Taylor decided to relieve General Manager Kevin McHale of his duties and put him on the bench to coach the team McHale himself assembled, which is an obvious move to push McHale out of the organization; John Wooden, Phil Jackson and Red Auerbach combined could not get this young team to win NOW. The pressure is on coaches and players to perform and the economic contraints are clearly showing ; the NFL contracts are now featuring behavioral clauses for a large number of players, which will enable the organization to distance themselves from dibilitating financial ramifications of a deal signed with players. Even leagues themelves are affected; the WNBA's Houston Comets, once the flagship of the popular league is now defunct and the Arena Football League (AFL) has cancelled it's 2oo9 season. It has been said that pro sports is recession-proof, but as we can see with the layoffs all of the major professional sports leagues have initiated recently, this obviously is not true.
If we look at the new stadiums that popped up from 1995 t0 2007, we see a sterling example of publicly funded venues that raked in profits for the owners, tax money for the municalities and increased prices (and taxes) on the consumer. Taxpayers across the country have financed large number of the these projects and the states themselves have given prime land and investment to them; however, citizens are the ones's often footing the bill on maintenance and infrastructure. Teams have forced fans to buy personal seat licenses and overpriced food at the games with the combined costs of travel and parking, the typical night out with the family is too much to bear. Now the fans are in an even more precarious position; the recession has rendered the average fan no choice but to not go to the games not willing to frivilously spend money that can be saved on on paying that adjustable rate mortage. This fan especially is not going to pay large money to see a young team 'getting their lumps' but improving slowly before they make some noise down the line at some indeterminable time. In the 1990's that plan was acceptable as money was flowing all over the place to the point where we saw our first $100 million player in Los Angeles Dodgers pitcher Kevin Brown.
For a profit/spotlight seeking owner, this was a great environment to operate; however now, this does not exist. The owner now faces the prospects of either a championship run or empty stands...there no longer is that happy medium. In Sunday's Phoenix Cardinals-Minnesota Vikings game, the stadium was not sold out. This is not a regular stadium either mind you; it is the prestigious University of Phoenix Stadium (look up at my header, yeah that's the stadium). The Cards are division champions for the first time since 1975 AND the game could be a playoff preview between two good teams. Under normal circumstances, that place would be banged out and the fans would have been going crazy...not anymore. This dilemma is exactly what prompted Ralph Wilson, the owner of the Buffalo Bills, to examine potential profits in other markets, hence, the team's recent agreement to play several games over the next few years in Toronto, Ontario.
Owners now have to find a way to justify all of the political strong-arming, the financing of expensive venues and exorbitant salaries of employees that no longer relate to the people who watch them. The luxury boxes built into new stadiums were contructed with corporate interests in mind; now that the corporations are themselves suffering, what is an owner to do? If they have priced out the 'everyman' who was and still loyal. The upper classes are scaling back their expenses and less wealthy fans are considering cutting this entertainment out entirely. How can an owner make a buck here? WINNING. The owners are willing to spend now to gain a foothold in future generations via that magical championship season(s) and it is the coach who will bear the brunt of pressure because of this. The Philadelphia 76ers gave Maurice Cheeks a contract extension 2 and a half months before firing him. Sylvester Croom, the head coach of Missisippi State University's football team was forced to resign one season removed from being named SEC Coach of the Year and likewise rewarded with a contract extension(yes, the bottom line has trickled down to the college ranks as well). The message here is mere improvements only buy you stay; there is no room for a 'bad' season; just ask Tommy Tuberville, the deposed football coach at Auburn University.
If we thought sports on any level was bottom line before, there is no doubt it really going to be at that point from now on. There are positives that may come out of this such as better management, more control over the market value of the players (i.e. protecting the owners from themselves), better player development and owners making hires on a common ground with the individual they are bringing in, which would save us from Lane Kiffin-Al Davis like feuds. However, it seems as if some organizations still don't get it as the New York Yankees handed out over $200 million in combined guaranteed money to two free agents while employing one with a $180 million deal and another with a $250 million contract. Winning is at an all-time premium right now and everyone (fans, owners and players) has a smaller margin for error due to the economic crisis in the United States.
I have been stuck in books, studied through a hurricane and worked insane nights waiting for the opportunity to give my take on the sports world that I have not been a part of for at least 4 months. One of things that has been stuck on my mind doesn't have to do with batting averages, yards per carry, penalty minutes or assist to turnover ratio. It has to do with the recently declared recession in the United States and how it is and will affect not only the economics of the professional and ameatur sports we enjoy, but also the jobs of the people who are directly involved in the industry whether it be the sausage vendor, ticket scalper, equipment manager, coach or Vice President of an organization. I have seen owners of teams so vastly affected by the ever-shrinking bottom line, that the general managers, coaches and players they employ have shorter leashes than in the past and there is no longer patience for team to get better over a series of seasons whether they be up or down. If an owner (or school, as we shall see) is hemorraging money, the only way to conceivably break even, is to put immense pressure on the people they employ to win NOW. The days of hiring a coach and giving him 3 years to turn around a program are becoming a thing of the past. Barry Melrose of the Tampa Bay Lightning lasted mere weeks before given his walking papers. Owners who are facing serious financial peril need a product that the fans, sponsors, local and national media can embrace as it will equal more merchandising opportunities and then in turn, increased gate attendance at games (especially if one put up tons of cash to finance the building of a state of the art arena or stadium). The NBA has already featured 5 coaching changes within the the opening stages of the 2008-09 season; Washington's Eddie Jordan, Oklahoma City's P.J. Carlisimo, Sacramento's Reggie Theus, Minnesota's Randy Wittman and Philadelphia's Maurice Cheeks have been handed the ol' pink slip by their employers within the past three weeks and we have not even reached the halfway point of the regular season. In the NFL, numerous teams will undergo major organizational reconstruction projects on the personnel side, coaching and the executive positions. If anyone were to ask if this is necessary, I would bittersweetly say yes.
If I were an owner of a pro sports franchise in the current economic environment, I have to be cognizant of several things: 1) If the team is not winning, how do we make a profit? 2) If the on the field/court/ice product does improve, will it positively affect the bottom line? and 3) If I can positively affect the bottom line, can I afford to do it over a 3-5 year period? The answer is no. Look at the recent examples of not only the NBA coaches but the short life span that Romeo Crennel and Phil Savage will have for the NFL's Cleveland Browns or the recent resignation of former Kansas City Chiefs President and General Manager, Carl Peterson. In the NBA, the Minnesota Timberwolves owner Glen Taylor decided to relieve General Manager Kevin McHale of his duties and put him on the bench to coach the team McHale himself assembled, which is an obvious move to push McHale out of the organization; John Wooden, Phil Jackson and Red Auerbach combined could not get this young team to win NOW. The pressure is on coaches and players to perform and the economic contraints are clearly showing ; the NFL contracts are now featuring behavioral clauses for a large number of players, which will enable the organization to distance themselves from dibilitating financial ramifications of a deal signed with players. Even leagues themelves are affected; the WNBA's Houston Comets, once the flagship of the popular league is now defunct and the Arena Football League (AFL) has cancelled it's 2oo9 season. It has been said that pro sports is recession-proof, but as we can see with the layoffs all of the major professional sports leagues have initiated recently, this obviously is not true.
If we look at the new stadiums that popped up from 1995 t0 2007, we see a sterling example of publicly funded venues that raked in profits for the owners, tax money for the municalities and increased prices (and taxes) on the consumer. Taxpayers across the country have financed large number of the these projects and the states themselves have given prime land and investment to them; however, citizens are the ones's often footing the bill on maintenance and infrastructure. Teams have forced fans to buy personal seat licenses and overpriced food at the games with the combined costs of travel and parking, the typical night out with the family is too much to bear. Now the fans are in an even more precarious position; the recession has rendered the average fan no choice but to not go to the games not willing to frivilously spend money that can be saved on on paying that adjustable rate mortage. This fan especially is not going to pay large money to see a young team 'getting their lumps' but improving slowly before they make some noise down the line at some indeterminable time. In the 1990's that plan was acceptable as money was flowing all over the place to the point where we saw our first $100 million player in Los Angeles Dodgers pitcher Kevin Brown.
For a profit/spotlight seeking owner, this was a great environment to operate; however now, this does not exist. The owner now faces the prospects of either a championship run or empty stands...there no longer is that happy medium. In Sunday's Phoenix Cardinals-Minnesota Vikings game, the stadium was not sold out. This is not a regular stadium either mind you; it is the prestigious University of Phoenix Stadium (look up at my header, yeah that's the stadium). The Cards are division champions for the first time since 1975 AND the game could be a playoff preview between two good teams. Under normal circumstances, that place would be banged out and the fans would have been going crazy...not anymore. This dilemma is exactly what prompted Ralph Wilson, the owner of the Buffalo Bills, to examine potential profits in other markets, hence, the team's recent agreement to play several games over the next few years in Toronto, Ontario.
Owners now have to find a way to justify all of the political strong-arming, the financing of expensive venues and exorbitant salaries of employees that no longer relate to the people who watch them. The luxury boxes built into new stadiums were contructed with corporate interests in mind; now that the corporations are themselves suffering, what is an owner to do? If they have priced out the 'everyman' who was and still loyal. The upper classes are scaling back their expenses and less wealthy fans are considering cutting this entertainment out entirely. How can an owner make a buck here? WINNING. The owners are willing to spend now to gain a foothold in future generations via that magical championship season(s) and it is the coach who will bear the brunt of pressure because of this. The Philadelphia 76ers gave Maurice Cheeks a contract extension 2 and a half months before firing him. Sylvester Croom, the head coach of Missisippi State University's football team was forced to resign one season removed from being named SEC Coach of the Year and likewise rewarded with a contract extension(yes, the bottom line has trickled down to the college ranks as well). The message here is mere improvements only buy you stay; there is no room for a 'bad' season; just ask Tommy Tuberville, the deposed football coach at Auburn University.
If we thought sports on any level was bottom line before, there is no doubt it really going to be at that point from now on. There are positives that may come out of this such as better management, more control over the market value of the players (i.e. protecting the owners from themselves), better player development and owners making hires on a common ground with the individual they are bringing in, which would save us from Lane Kiffin-Al Davis like feuds. However, it seems as if some organizations still don't get it as the New York Yankees handed out over $200 million in combined guaranteed money to two free agents while employing one with a $180 million deal and another with a $250 million contract. Winning is at an all-time premium right now and everyone (fans, owners and players) has a smaller margin for error due to the economic crisis in the United States.
It grows ever true: To stick with a job you gotta win NOW. Good stuff, the economic effect is hurting sports but it is good b/c it is making fans a key component of the owner's next move. If they stink we're not going, so the owners must change things up...how (bitter) sweet it is...
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