Quote:
Originally Posted by Festivus
It may be a not-for-profit...but my point and opinion still stands, that it's a singular entity that exists within a private for-profit organization of teams (it being the only non-profit component) that makes lots of money.
Really from a free-enterprise standpoint there is no reason the CFL or NFL or anyone should have 30,000-seat stadiums. If you based it on actual demand and what it would cost to build (and maintain) and factored that into ticket prices you'd probably see 5,000-person stadiums instead. I'm not a fan of government subsidizing certain forms of entertainment and not others, especially for leagues where players make far more than the median Canadian salary. If you took out the massive government subsidies of professional sports in Canada (and the US) you'd have a more realistic image of what sport should be like, in terms of scope and scale. However, it's a part of life and I've accepted that, I just don't like it.
It will be interesting to see what happens in the coming 5-10 years as cable TV collapses (network too) and advertising revenue plummets. The NFL in particular is reliant on that money, and if they were to charge people the true cost of watching streams of games, it would be quite and expensive hobby (estimates of around $30-$40/mo for streamed NFL games). While many fans will pay this, all won't, which means big drops in revenue. I would bet we're going to see a big shrinkage of professional sports in North America in the next 10 years as revenue sources start to decrease. Just a prediction though!
|
It does feel like a house of cards doesn't it? With all the obscene tv deals being signed - billion dollar local MLB tv deal for Dodgers, Anaheim which pays each team over $100 million a year; recent American TV deal for the NBA that pays each team $85 million per year; Rogers Sportsnet deal for the NHL - I just don't see how these networks can possibly hope to recover their cash outlays for these contracts. With more cord cutting happening by the year, it will be that much more difficult and no, I don't think they will totally mitigate this with new media deals on the internet.
Then you have the cost of attending the event which is obscene in itself. Even if you don't over-indulge, a typical night out at a hockey, NFL or NBA game will probably set you back $150 - $200 for one person once you factor in the average ticket price, parking, one food and one beverage item. Even one CFL game for an individual will probably run $100 for an average priced ticket, parking and one food and beverage item. It's getting crazy.
And all the leagues still rely to a large degree on the middle income earner. Yeah there are plenty of seats for the high rollers - suites, club sections, field level and lower level seating but make no mistake about it, much of the revenue at the gate is larger dependent on the working and middle income earners...and the middle income person's wages have not kept up with the rapidly escalating costs of attending these sports events. 5 - 10% increases in ticket prices and food and concession prices every single year while wages remain stagnant or if you're lucky you see a small increase of 1-2%. Many will eventually throw up their hands and say "Enough" and cease to come...or at least come less frequently.
I'm sure in the next decade or so, we will see a major shift in the economic realities of sports - less revenues from TV and lower live attendance and subsequently, less revenue from the live gate. Owners and players will both suffer though I wouldn't feel to sorry for them.
Prev
Linear Mode
