Show me the money

There is an old saying that in order to move toward your future, you must know about your past. There have been many recessions in U.S history. During the Great Depression entertainment took on a new meaning to U.S citizens. The escape from the world around them was worth the dollar that was hard to come by. However, sports leagues have folded and cut backs are on a rise. Premier sports leagues have created ways to be more efficient with money. Baxter Homes wrote, “This year the Lakers e-mailed Christmas cards to save postage. The team cut back on corporate gifts, created an installment payment plan for season-ticket holders and noticed many fans didn't buy season parking passes (Holmes, 2009).” This method of efficiency seems to be working. American sports leagues may have taken a hit economically. However one sport prevails to be recession proof. Although soccer is not a popular sport in America, it is in high demand amongst the rest of the world. This global popularity may be the reasoning why soccer seems to be unaffected by the economy. Soccer leagues also distribute money differently than American sports. Parmy Olson wrote:
Soccer differs from American sports in the way it distributes its TV money. U.S. leagues like the NBA and NFL tend to sell rights centrally and then distribute the revenue equally. Most European soccer leagues share revenues based on performance. The EPL distributes half the money equally among its 20 clubs, with the other 50% based on number of TV appearances and league position. France opts for a 75%-25% split. Performance-related sharing of broadcast rights makes leagues more competitive, according to Stefan Kesenne in the International Journal of Sport Finance (Olson 2010).
History has shown us that there is no need to panic when it comes to sports in America. The fan base may get smaller, but it won’t cease to exist. It is up to the sporting industry to maintain composer and find new revenue streams during trying times. Cutbacks seem to be the most efficient system during this recession. Sports leagues have to analyze there needs and get rid of the unnecessary.



Reference:

Holmes, B. (2009, December 30). This time around, sports aren't
recession-proof. Retrieved from http://articles.latimes.com/2009/dec/30/sports/la-sp-economy30-2009dec30

Olson, P. (2010, April 23). The world's most recession-proof sport.
Retrieved from http://www.forbes.com/forbes/2010/0510/companies-soccer-valuations-manchester-united-recession-proof-sport.html