The current economy in the United States is affecting all Americans. The most recent recession according to the National Bureau of Economic Research started on December 1, 2007 and ended in June 2009. The recession is said to have ended because economic activity increased for two quarters. Even though this is true Americans are still suffering and are unable to spend money like before. This is affecting the sports industry. Some teams have had to shut down while others have to get creative to make sales. I am going to first discuss the current situation for many sports teams, then I will discuss some methods used by teams to increase sales, and finally I will give you my thoughts on what I would do to increase productivity during these tough times.
With the current economic condition many sports teams are suffering. Minor leagues have had to shut down. The Arena Football League was shut down in 2009. This was a 22-year-old league that was lost due to the loss in spending. Minor league hockey suffered as seasons were cut short and teams were lost. Some college teams were able to get through the economic downturn, but others had to make cuts. Louisiana had a lack in funds that caused the tennis team to be cut. Nascar also suffered due to the economy. They said that there loss was due to a lack in consumer confidence, a rise in unemployment, and an increase in fuel and food costs. The International Speedway Corporation (ISC) proved that this was a problem. The ISC owns 13 tracks including the Daytona International Speedway. In 2009 food and merchandise spending fell 34 percent and ticket sales dropped 16 percent. The National Football League also took a hit. Stadiums have to sell their tickets in order for games to appear on television. The Jacksonville Jaguars had a hard time selling tickets and were actually predicting to have all eight home games blacked out.
With the economy not improving sports teams had to get creative. They needed to find a way to attract fans. Teams have tried various methods. The Tampa Bay Buccaneers offered a flexible payment plan. The Atlanta Falcons presented a similar six-month payment plan. The New Orleans Saints went as far as a layaway option. Major League Baseball was able to keep positive income through their technology. This supplemented losses that came from the game. College teams got creative in finding new ways to keep ticket sales. The University of Florida chose not to increase their ticket prices in 2009. They said they wanted to reward the fans for their loyalty to the team. Arizona State University created the Devil Domain. They wanted to create an ultimate fan experience. The Devil Domain included a website, rewards program, screensavers, and discounts. Fans were able to get involved and save money. The University of Wisconsin had a unique way of getting their athletes and campus involved. Student athletes spent the first few weeks of school making appearances around campus. They wanted the students to be social and let the student athletes know they are students just like everyone else on campus. This helps the University of Wisconsin fill the stands with students that felt a connection with the team. In addition to the appearances the school also does a point system. The point system allows students to earn points for events that they attend. These points are added up and at the end of the year prizes are distributed.
In addition to creative marketing techniques teams have other factors to consider when they want to increase revenue. When people choose to attend games they are interested in watching successful teams. Teams with losing records have a harder time selling tickets than those teams that have winning records. Teams are able to change their record and fan base by recruiting new players. New athletes have proved to improve ticket sales. Miami Heats attendance was increased with the addition of LeBron James and Chris Bosh. In 2010 they had 17,885 fans, which ranked them 11th. In 2011 they were able to attract 19,612 fans, which brought them all the way up to 2nd in the ranks. This was also successful for Chicago Sky who was able to increase ticket sales by 28.9 percent in 2011. Sylvia Fowles, Epiphanny Prince and Courtney Vandersloot made the difference in sales.
As a current student planning to enter the sports industry I have gave a lot of thought to how to make sports profitable during the current economic crisis. I think that the most important part is the fan experience. The fan wants to be part of the team and they expect a certain experience when they come to a game. Part of my fan experience would be meeting the players. The fans should be connected with the team on a personal level. Having a website is important for the fans as well. The website should allow fans to stay update with team information and allow the fans to enter for special promotions. I want to give out coupons for merchandise and food. This will make the cost inside the venue less for the fans. Ticket prices are a large factor in bringing fans to the game. I want to make tickets affordable and offer payment options for fans. I also want to have certain games where fans can have special discounts on tickets. In order to get new fans I want to have a college night and a grade school night. I recently went to a football game at The University of Central Florida. I received a free ticket as a promotion to local colleges in the area. I went and had a good time. Now I want to return for another game because of the experience that I had. By offering a grade school and college night students would be able to have the same experience. They are the future ticket holders.
Sports teams have suffered during this economic downturn. Some teams have had to shut down while others have been able to push through. The sports industry has to get creative to ensure that fans are involved in the game. There are teams that offer flexible payment plans and others that offer the ultimate fan experience. Some teams have paid extra to receive players that will bring fans to the stadium. I think that teams should combine various promotions and find a plan that best supports the fan base. If we can support the fans during this tough economy the fans will stick around. Fan loyalty is the ultimate goal for any sports team. Creating new promotional techniques will only improve the success of the sports industry.
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