The Effects Of The Great Recession On The Sports Industry

Economic theory introduces us to four different types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly. Professional sports teams operate in an environment that is different than the typical business structure. The goal of this paper is to look at this industry, in particular the NFL, in an economics context and gain an understanding of the market structure of this unique industry. To do this I will discuss a brief history of the National Football League in the U.S. and how this organization is structured. I will also discuss typical market structures and type of

The NFL and its owners have voted to shorten overtime from 15 minutes to 10. The league cited the change as a way to make the game safer for its players, as playing 75 minutes of football increases the risk of injuries. More time to play, more chances to get injured.

Everybody in the United Stated was affected by the recession that began in December of 2007 and spanned all the way to June 2009. Even though the recession is over, many people are still being affected by it and have still not been able to recover from the great recession. “The recent recession features the largest decline in output, consumption, and investment, and the largest increase in unemployment, of any post-war recession”. Many people lost their jobs due to the recession and some of them are still having a hard time finding jobs and getting back on their feet. Businesses

As the unemployment rate was falling in the early 2000s, attendance was on the rise, but as the unemployment rate began to climb starting in 2008, attendance started to fall, and in 2010 we seen a drop below the 4 million-attendance mark for the first time since 2003. As people either lose their jobs, or fear losing their jobs, they don’t just cut back on trips to the track. They start to cut back on spending in other areas such as areas where the team sponsors feel it in their pocketbooks. Less spending by consumers means less income for the corporate sponsor, which means less spending by those sponsors on

The United States entered “The Great Recession” in December of 2007. Its impact was felt by nations all around the world. This event triggered the loss of 8.8 million jobs around the country and created a sense of economic instability. I’m very interested in finance and stocks, so this provided an incentive to be careful with my purchases and investments

The recession of 2008 is also called the ‘Great Recession’, said to have begun in December 2007, and took a turn for the worse in September 2008, and it was a severe economic problem expanded globally. This recession affected the world economy, and is said to have been the worst financial disaster since the Great Depression. The decline in the Dow Jones this time was -53.8%. Since the official start of the recession in December 2007, and through June 2010 there have been about 2.3 million homes foreclosed in the United States. In 2012, the state with the most foreclosures in January alone was California, with 51,584 houses being repossessed. Unemployment during this collapse was 8.5%, and continued to increase to about 10% as of 2010. People’s reaction to this recession was a huge decrease in spending and borrowing from banks, but an increase in saving.

While growing up in the state of Texas I was introduced to National Football League (NFL) at a very young age. Not only was I obsessed with great players like Emmitt Smith and Michael Irving, I had a more finical appreciation for the lucrativeness associated with the NFL. My young adulthood as well as my teenage years was spent playing and learning football with the aspirations of hopefully making it to the NFL. Unfortunately, my playing days ended with tryouts at Texas Tech University, but my love for the game has remained stagnant over the years even till this day. The NFL today is Americas most watched sports league and has taken the crown as the most lucrative and unique economic force in sports. Forbes offered approximations stating that on average, the NFL generates more than $6-9 billion a year in revenues alone. A third of the individual franchises in the league were appraised at over more than $1 billion while the other franchises average nine figures or higher. The NFL as an organization generates its revenues through a multitude of ways ranging from huge television contracts, in-stadium ticket sales, advertising ads paid for by sponsors and merchandise. Their business model unlike most other leagues, is centered on a hard salary cap on player contracts which provides cost certainty with its sponsors. In this paper, I will examine the economic and historical narrative associated with the growth of the NFL’s

Robert Kiyosaki once said, “Successful people take big risks knowing they might fall hard but they might succeed more than they ever dreamed.” This man is a billionaire that hit the jackpot, while gambling. He now owns eleven different businesses and he is worth over eighty million dollars. If someone could learn how to astute, they could live like him too. The articles, The Legalized Gambling Debate, Sports Betting Should be Legal, and Should Sports Gambling be Legal?, all attribute thought to this suggestion. Gambling is a feasible business as it provides revenue, sponsors education, and inspires gamblers.

“It is not about how hard you fall, but how you get up and keep going.” Economic recession may be a natural phenomenon in the world’s economies. Every market has its peaks and falls, definitely the United States of America has hers.

The Great Recession that began in 2007 introduced people to a feeling not since felt since the Great Depression of the 30’s and 40’s. It reintroduced a new generation to the realization that we cannot take anything for granted. It sprung up fears in a fearless population, and out of it born a stress like no other. We can harness that stress; we own it as individuals, employees, as employers, as caretakers of the future.

The Great Recession, December 2007 through June2009 marks an unstable 18 months for the United States’ economy, that countless amounts of people won’t forget. The housing and bank markets during the recession were not recouping much money off loans and low interest rates, which cause both markets to nearly crash. This caused many Americans to lose their jobs and the unemployment rates to reach the highest numbers since the Great Depression. But ever since 2009, the economy has been an on slow but steady track up to being what it once was.

Based on author, David Halberstam’s quote that “ Sport is a window on a changing society”, I have learned that high in rank companies, and leagues make many of their decisions based on money and how it can help and hurt their company. Sports are a great example of this thinking because of how public it is and many of the business decisions they make can be viewed by anyone. The American society is changing a lot and it can be seen greatly through

Sports have always been one of the major factors of the society and economy. Back in Ancient Greece, the homeland of the Olympic games, the Greeks believed that a healthy body was very important and sports played an important part of the society. Nowadays, the sport industry has grown to a direct and indirect economic impact of the countries, with organizations and sport events that have fans and supporters from all over the planet that are willing to spend a great amount of money in order to show their support for their favorite team, player or club. That happens because sports entertain people by watching their favorite sport teams play in some of the sports mega-events.

     In the wide world of sports, teams will try and find a way to better market themselves in the nation to make more revenue. There are many ways to market your team but in the newer generation teams have been taking a different approach. Most teams will advertise there big sports star in trying to have people buy there gear, buy tickets, or simply support their team. But the most effective way to market your team is getting to the kids first. In advertising for a younger generation, you will tie the kids in more at an earlier age and hopefully will stay with the team throughout the years.

In the late 2000s, a period of general economic decline occurred in world’s markets. Even though the Great Recession, as it was called, varied from country to country it is concluded that it was the worst economic recession since WW2. (Davis, 2009).