Sports Synopsis
Sports teams are a lot like people in this current economy. The bigger teams/leagues with money will survive and the smaller teams/leagues will struggle. The smaller teams have to rely on creative ideas to bring in revenue in this slow economy. Another factor that keep venues alive is the loyal fan base. Living in an area that loves SEC football, I truly understand the passion they have for their specific SEC team. To some of these fans, it’s a religion and not a sport.
While college football in the south will likely survive the economy, many pro teams are not so lucky. With the lost of living and gas prices going up, fan attendance goes down. Organizations like the Arena Football League and minor hockey leagues had to be shut down because of this. Most of the major sporting event have suffered, but not to the point of being shut down. Some of these franchises want new venues, but have to be held off to a later date.
This article showed me how sporting events are “The Great Escape” from reality. Lots of people work long hours, hate their jobs, hate their life, and need something to look forward to. To some of these fans, it’s the only thing they have to interact with others, while providing bonding opportunities with close friends and families. Even when times are hard, fans will find enough money to spend on their team via game day or merchandise.
My Ideas on Making Money in a Down Economy
We have seen over the years that loyal fans and will do anything for their team. People that are on the business side recognize this and come up with creative ideas to bring money in a down economy. Here are some of my ideas to generate revenue:
Idea #1: Make Events for the Fans
The only way athletes and/or arenas make money because of its fans. It’s important for teams and franchises to interact with fans as much as possible. Facility Managers can create an event where fans have access to their favorite star. In the event you can have a Q &A session with their favorite star, autograph from athletes, and photo opportunities with players. It’s also a good opportunity for fans to interact with other fans and make new friends.
The most successful example is the UFC (Ultimate Fighting Championship) Fan Expo event in Toronto. UFC 129 was a big event promoting Canada’s own George St. Pierre against American Jake Shields at the Rogers Centre in Toronto, Ontario, Canada. This event was sold out for about two months and already grossed $11 million at the gate. The day before, and morning of this event, the UFC has an event strictly for the fans called UFC Fan Expo. They have 125 vendors throughout MMA spectrum selling T-shirts and other merchandise. In addition, the event had 300,000 square feet for UFC seminars, tutorial, autograph signing with UFC fighters, photos with UFC fighters, and so much more. With the UFC being so successful with fan interaction, it led to the big event that at the Rogers Centre. 55,000 people witnessed UFC 129 that night and millions of people on Pay-Per-View.
Idea #2: Schedule Live Events
If you live in a big city, most facility managers are already doing this. This is best way to bring money in and not rely on sporting events to bring in money. Sporting events go like a season. Take college towns for example. If that particular school is good at football, their peak season is in the fall. The wintertime if that school is a basketball town. Few college schools are good at both and revenue streams come in the combination of fall and winter. For college football towns like SEC areas, spring football is popular and usually that lasted a month or less financially. Pro teams are not so lucky, especially in the NFL right now. Their current lockout can devastate not just an NFL franchise, but also an entire city. Scheduling live events can do more than just generate revenue during the off-season, but it can also generate revenue if a lockout takes place. Another bonus in doing this is that your facility can stay current in the entertainment industry for live events. Current shows can include, but not limit to, WWE events, UFC events, Cirque Du Soleil, and maybe live acts like artist Lil Wayne.
My examples of how this idea works is what’s going on the Amway Center in Orlando and the American Airlines Arena (AA Arena) in Miami. Despite the fact that the Orlando Magic team had a disappointing season, the Amway Center is moving on financially and making live events happen. Upcoming shows include artists like Taylor Swift, Bon Jovi, Rueben Blades, and Gilberto Santa Rosa. Other acts include comedian Martin Lawrence and his comedy tour. The same goes for AA Arena in Miami. As of right now, The Miami Heat team are still in the playoffs. That doesn’t stop the arena from scheduling live events. Latin artists like Luis Miguel and Camilo Sesto are scheduled to perform regardless of how the Miami Heat plays in the playoffs. Once the off-season begins, AA Arena will have artists like Sade and Britney Spears scheduled. The advantage a major city has is the fact that with so many things going on, they don’t have to rely on sports to survive financially. Some smaller cities have this advantage, but most don’t.
Idea #3: If all Else Fails, Party Party Party!!!
I saved this one for the last because it’s a hit-or-miss ideas depending on who you are. Pro Athletes, and some college players, are superstars in their own right. My thought is why not cash in on this idea and create an event from this. My idea is having an artist perform and the athlete (college or pro) host the event. I’m thinking about Lil Wayne performing live with special guest host Mark Ingram at Club La Vela in Panama City. This can generate revenue from Lil Wayne fans, Alabama fans, and Saints fans.
Where I live in Fort Walton Beach, people like to party hard. Since SEC football is so popular where I live, I’ve heard about viewing parties for a particular team like Auburn, Alabama, FSU, and the Florida Gators. It’s a great idea for fan interaction and money for your business or event. If you’re a pro athlete, you can have parties promoting your product, a new season, or just hanging out with the fans. Athletes have done this before, but some athletes need to be careful at parties. Anyone who watches ESPN frequently knows the dark side to pro athletes at parties.
An example of this is a flyer I saw at the 400 club in South Beach Miami. Larry Hughes, New York Knick at the time, and current Jaguars Running Back Maurice Jones-Drew hosted a party for Steven Tulloch Charity Weekend. Steven Tulloch is a current Linebacker for the Tennessee Titans. Another event is when Channing Crowder, Miami Dolphin Linebacker, hosted a “Back 2 Camp” weekend event. I didn’t hear anything negative at these events so I’m assuming everything went well.
Conclusion
There are many other ways to generate revenue in this economy. What I have listed are only some of the ideas to bring money in. Right now, some facility manager is coming up with ideas more creative than what I have suggested. Living in the Florida Panhandle near a lot of SEC schools, fan loyalty and game attendance will never be an issue for years to come. I can go ahead and add FSU (Florida State) to list of schools that have loyal fans and great attendance on game days. Nobody knows for sure when the economy will get better. All I know is that whether it’s a big market or small market, only the strong (and most creative) will survive this on-going recession.
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