levitra 20 mg how long does it last naproxen 500 mg high levothyroxine 75 mcg online order risperdal lawsuit attorney gabapentin high buy montelukast online from india plendil 5mg felodipine tri levlen generics normal digoxin toxicity level thalidomide multiple myeloma pdf corega tabs dental eulexin medication for anxiety buylowdrugs comcast home finasteride propecia 1mg carprofen 100 mg chewables avalide 300 12.5 recall canada drugs no prescription needed zanaflex side effects dizziness buy lasix overnight delivery cialis 20 mg with paypal viagra sold in the usa epogen information amgen vistaril medication anxiety drug reichlox 500mg amoxicillin side effects of lozol indapamidelubexyllumigan chapel hill united methodist portage mi levlen 28 information levitra preise dynamogen syrup brands cardinal bird house plans octreotide scan cpt codes purchasing viagra without prescription buy cialis 20mg tablets estrotab 2mg valium when does cialis kick in bes prices on mens levitra cialis 5 mg prix pharmacie zithromax antibiotic dosage ramipril 10mg for sale deltacortril ent 5mg piroxicam 20 mg medication aldactone generic daily cialis price cialis soft mastercard thailand pharmacy online diflucan metronidazole oral liquid dogs buy viagra on the internet berifen 100mg morphine cabaser reviews of 50 cyclidox tablets frumil side effects order viagra usa pharmacy vilches radioactive macrobid for uti prevention navidoxine drug mart enalapril 10mg images buy ondansetron without prescription erectile dysfunction edmonton pyridium dosage for children z pack zithromax for strep throat tretinoin cream 005 no script ramicomp genericon attendance cleocin antibiotic vimax video converter lowest price viagra 100 mg lasix overnight shipment desogen user reviewsdesyrel augmentin and alcohol use discount drugs no prescription mesalamine 400 mg pricesmesterolone what is clorfenamina compuesta toradol medication dosage cvs minute clinic viagra tabletten zum abstillen nachts sotalol side effects betapace manufacturer viagra pills cheapest pittsburgh lenny kravitz buy nexium for less money medoflucon 150 mg tramadol eprostol 200 viagra professional 100 mg ketorolac toradol in pregnancy lisinopril 20 mg efectos secundarios buy clomid from mexico is albendazole available online viagra with no pre actos plus metformin side effects citrate synthase inhibitors amlodipine besylate side effects hair loss buy generic viagra with e checks ativan withdrawal how long does it last viagra vs cialis vs levitra erectile dysfunction chlamydia pneumoniae unisom sleep tabs while pregnant luvox dosage side effects flomax side effects treatment mobicox tabletas para viagra super active coupon code lotrisone cream treatment medication tadalafil tablets 40 mg purchase birth control pills canada generic lipitor availability buy viagera online potassium permanganate glycerin composicion quimica de la viagra provera for amenorrhea forum brand levitra online microcidal 500mg to grams avalide side effects high blood pressure lopid side effects dose get doctor to prescribe azithromycin coumadin blood thinner medication zofran side effects purchase real antabuse tadacip 20 amantadina clorhidrato de bencidamina levoxyl recall 2015 antibiotics for sinus infections kamiren doxazosin escitalopram 10mg and alcohol primatene taken off the market zetia medication coupons format de viagra sur le marche cialis acquistp estrotab 1mg alprazolam cialis for sale online colchicine side effects treatment suprax antibiotic buy cailis canada azax dosage canada pharmacy online buy accutane viagra for sale in hong kong cialis in bangkok forum fasigyn fortels cialis from american companies fluconazole by mail effexor xr no prescription needed estradiol norethindrone acetate breckenridge how much is 3g of amoxicillian real u s a viagra four corners pharmacy sildenafil 100 mg precio viagra online overnight delivery usa pfizer viagra 100mg coupon cialis daily 5 mg online claritin dosage for adults levoxyl medication recall vente cialis price of viagra in mexico zenerx reviews in medical journals viagra for man cefixime 200mg for gonorrhea online pharmacy reviews no prescription celexa withdrawal symptoms doctor mobicool power cooler where to buy retina a vermox plus precio cialis 20 mg tablets clomid online australia viagra master card does viagra make you horny yasminelle where do they prescribe it kako deluje viagra arthrotec generic names seroxat cr 12 5mg valium celexa non generic online mebendazole vermox discontinued amoxicillin or zithromax for sinus infection rxlist drug interactions buy clomid paypal accepted retail price of viagra review for himcocid viagara without a script can viagra buspar side effects and weight gain yasmine bleeth photos recommended dosage of levitra vulnerable amex pharmacy support canada clavamox side effects in cats sneezingclavupen buy cialis from mexico microcidal definition of ethics dicyclomine 20 mg tablets side effects tamsulosin 0.4mg cap hoodia tea reviews risnia md 1 0002 452 toronto drug store reviews propranolol for anxiety half life lisinopril side effects medication doctor amaryllis belladonna pills prozac side effects in dogs tegretol side effects biotech ciprofloxacin tablets lexapro withdrawal how long does it last orlistat buy pregnant halloween costumes diy mebendazole treatment zestril side effects dose where to buy florinef for dogs zopiclone drug interactions cost for viagra prescription buy viagra from canada naprosyn medication drug cozaar 50 mg tablet flexeril medication reviewsflexidol buy suboxone online viagra pittsburgh progesterone suppositories after iui where to buy sildenafil citrate 100mg cialis daily cost acivir 800 jasmine pilchard gosnell pregnant ditropan medication dose side effects of levofloxacin 750 mg side effects buy cheap clonazepam increasing testosterone naturally in men colospan hovid malaysia where to buy ed pills online wintomylon 500mg rocco siffredi suhagra 100 retailers clomid prescriptions natural fertility drugs discounted viagra buy viagra london shop cialis per nachnahme noroxin medication information pharmacy plus online viagra in holland kaufen ohne rezept where can i purchase periactin pills xenial india where to buy viagra over the counter official kamagra india pharmacy buy lebitra forum xlpharmacy canada 411 cialis generic without a prescription lavitra brand 20mg sildenafil ranbaxy no perscription need paxil fast proscar finasteride price at walmart pilex tablets review tofranil 25mg medication viamedic com veterans day quotesviangraviapro lamictal rash images garlic butter sauce for fish zofran birth defects lawyer lipothin 200 fenofibrate 200mg canada viagra direct rx deals cafergot availability cialis srbija prodaja metpamid nedir sertraline hydrochloride antidepressants depression orlistat shortage uk purchasesuhagra in india how to uninstall vosteran search engine cheap blue pill haloperidol injection cpt code buy abortion pill azithromycin buy in canada tabletten gegen hautpilz behandeln united states based online pharmacy viagra rebates aciphex over the counter fucidin cream buy dog medication colchicine how much is a viagra pill no prescription fluoxetine zestril 20mg side effects keflex for uti treatment fluconazole 150 for sale online l thyroxin ohne rezept bestellen buy arimidex in australia levitra prezzo in farmacia italia cheapest kamagra oral jelly generic allegra at costco benicar 5mg without prescription allegra printing michigan elimite permethrin side effects silagra by cipla india where can i buy cheap cialis generic cialis 5mg lincocin antibiotic drug fucidin no prescription plavix canada pharmacy buy low cost viagra viagra online bestellen ohne rezept purchase trazodone septra ds antibiotics clomiphene 60 pills 25 mg no script usa best cialis online basket sevre et maine viagra sub letrozole terrible side effects femara abilify generic name and classification inderal dosage for anxiety isoptin sr medication can you take cephalexin for sinus infection viagra made in canada trazodone by mail online ed pharmacy ciprobay ciprofloxacin cyrux pastillas de alcachofa cheap albuterol and viagra imitrex buy u s canada cost of roaccutane best rated generic buspar pharmacy disease definition biology avodart sale metrogel side effects during pregnancy probenecid and gout dutasteride online buy reglan online no prescription cialis buy online no prescription androgel testosterone cost digoxin price increase metformin 850 mg buy professional viagra on line achat belara en ligne uroxatral side effects drug crestorusapharmacyusaviagravardenafivardenafil casodex medication for prostate cancer cialis buy greece cvs cialis coupon over counter med comparable to cialis zentel medicine for children ho cialisw to get buy viagra online with echeck alli buy pulmicort flexhaler 90 mcg finasteride sample premarin lawsuits premarin side effects viagra for sale in texas retino ac gel side effects pregnant halloween costumes baby arms healthyman reviews online medicine store european online pharmacy how to get misoprostol over the counter depakote side effects treatment tretinoin amazon samonas realty nh pulmicort flexhaler instructions video finpecia cipla online where can i buy mebendazole discount non prescription generic lasix clindamycin hcl 300 mg capsran side effects octreotide sandostatin side effects where to buy bystolic out of country diane keaton movies 2013 frumil 5 40 machine screws diameter lotrel generic medication free lantus insulin coupons prednisone 10 mg rocaltrol calcitriol dose for cats generic cialis cipla morphine side effects morphine withdrawal symptoms lo ovral 28 information mail order pills viagra nexium tablets 40mg online arthrotec generic name ezetimibe simvastatin niaspan no hassel meds on line minoxidil 5 for women viagra 150mg online torsemide medication class order zpak online cialis rezeptfrei nl losartan potassium 100 mg tab astelin side effects azelastine zenegra 100 uk singulair for childrens allergies flagyl 200mg tablets finasteride generico mailorder antibiotics furolin nitrofurantoin macrocrystals buy serta mattress miami dermizol gel stain canadian pha fast act viagra order xenical online levitra 20mg kaufen viagra for sale ireland levitra vs viagra vs cialis primox m relafen medication uses viagra doctors eltroxin 50 mcg side effects medicine store order propanonal can you get high off meloxicam comprar viagra por paypal robaxin dosage for horses zyprexa side effects olanzapine can celebrex get you high 40mg nolvadex clozapine dosages meclizine 25 mg tablet over the counter kenacomb cream medication buy clomid 100mg lergigan fass generic lexapro problems ranbaxy laboratories limited dewas buy metaprolol online testosterone healthbuy lexapro side effects weight loss tamsulosin 0.4mg capsules xenical from philippines viagra no prescription uk healthy man viagra without prescription desogen birth control weight gain buy alli diet pill extenze reviews yahoo answers lotrisone cream over the counter alternative how to make viagra at home for women sildenafil citrate 100mg pills soft pills buy alli international shipping anxiety disorder symptoms in children what is ciprotab 500 used for want to buy tretinoin flexidol relax efectos secundarios rocket lawyers legal documents is ok to take 2 20 milligram of cialis hydroxyzine hcl 10mg tablet side effects estradiol patch estrogen risk probenecid and penicillin g asthma symptoms in adults when running is it safe to rotate edex with viagra doxylamine side effects antihistamine viagra online canada overnight viramune manufacturers yasmine akram imdb mupirocin 2 used to treat non prescription colchicine online bupropion gastritis prix du viagra 100 en pharmacie propecia dosage reduction secure drugshop chlamydia pictures and images treatment ropinirole hcl 1 mg side effects stromectol 3 mg for scabies flexidol tablet for kids meprate tablet side effects paracetamol drug study doses maxalt migraine headaches zyprexa relprevv administrationzyrtec buy fluconazole 50 mg capsules vigra super active with no prection ampicillin 500mg for acne can you take 40 mg of levitra phenergan and pregnancy nausea clavaseptin 500mg vicodin what is temovate gel used for la esquina tango austin texas claravis side effects rash diazepam information medication buy cialis no prescription periostat dosage for periodontal disease tinidazole dosage for dogs tavor ohne rezept elomet cream uses buy hgh online mexico progesterone only birth control rapharmacy reviews neurontin gabapentin side effects femara drug assistance program vicodin withdrawal symptoms addiction zenegra reviews on garcinia viagra like over the counter buy viagra from mexica or canada ketorolac 10mg toradol dose enalapril 10mg prospect amoxicillin online no prescription uk viagra australia fast delivery trusted sites to buy viagra atarax prospecto buy zovirax ointment medicationzyban tadacip suppliers glucovance online no prescription xlpharmacy medications for adhd sidenafil on line donepezil 5 mg tablets cost cialis commercial bathtubs ceftin side effects weight gain tadalafil 20mg lowest price sildenafil citrate 100mg from india diarex magnum routers cipro bay 1000 mg buying cialis in mexico flomax for women with multiple sclerosis warner chilcott estrace coupons clenbuterol side effects on women styplon side effects pill identifier lergigan fortegames propecia order no prescription pyridium medication over the counter popular pills online fentanyl citrate mechanism of action will propecia work on hairline clonidine overnight delivery prandin 2mg side effects
Home All Articles Baseball Could Weather Recession

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 1015 guests online

Atom RSS

Baseball Could Weather Recession PDF Print E-mail
User Rating: / 5
PoorBest 
Articles & Opinion
Written by Dave Rouleau   
Sunday, 27 January 2008 11:58

A Biz of Baseball Original ArticleThe Business of Sports Network is pleased to announce the addition of Dave Rouleau to our staff of writers and researchers. Some may know of Dave through his work with Baseball Digest Daily, which he will continue to do. Look for Dave to cover baseball here on The Biz of Baseball, and hockey matters for The Biz of Hockey. -- Maury Brown

With the economy occupying an increasingly big role in the presidential race and the international discussions, some are wondering how it might affect baseball and how the game has fared in the past when faced with economic downturns.  No recession is the same and the different eras bring forth a different set of challenges that were not present in the past.

Let’s examine what people have to say and the studies and analysis that have already been done on the subject

 First, Tim Marchman of the New York Sun correctly emphasized the different revenue streams for baseball teams, who do not rely as much on tickets sold to fatten the bottom line.  He examined the five recessions (determined by a decline in a country’s gross domestic product, or negative real economic growth for two or more quarters in a year) since the end of World War II and the effect on attendance to see the impact:

In 1948, 16 teams drew a total of 21 million fans, an average of 1.3 million per team. In November, the economy tipped into a recession that lasted until October of the next year. During 1949, attendance held steady at 1.26 million per team. These are figures baseball didn't regularly exceed for another 40 years, until the 1978 expansion led to great gains in popularity in the teeth of yet more negative growth: In 1980, during a recession that lasted from January until July, attendance rose from 1979's 1.6 million fans per team to 1.7 million. Every team in the National League drew at least a million fans that year.

Examples abound. In 1969, the 24 teams drew 1.15 million fans per team. During a recession that began that December, and lasted until November 1970, attendance increased to 1.25 million per team. More recently in 2000, baseball set a new attendance record at 73 million; the next year, despite a meltdown in technology stocks, it drew 73 million again.

Craig Calcaterra from Shysterball brought forth a counterpoint when he mentioned that attendance figures usually decreased two years after a recession:

For this reason it may be more profitable to look at the year or two after a recession is over in order to gauge its effect on baseball attendance. Eyeballing Marchman's examples -- the recessions of 1949, 1970, 1980, and 2001 -- shows that, at the very least, it's a mixed bag. The 1970 recession truly appears to not have had any material impact on attendance either at the time or in the following year or two. We can't truly assess post-1980 recession attendance because the 1981 strike gums up the data, but I will grant that 1982 and 1983 were strong. The other two examples, however, show a sharp decline in the seasons immediately following the recession:

1948-49 Recession

pre-recession attendance (1948): 20,938,388

recession year attendance (1949): 20,215,365

post-recession year one attendance: (1950): 17,462,977*

post-recession year two attendance: (1951): 16,126,676*

2001 Recession

Pre-recession attendance (2000): 72,702,420

Recession year attendance (2001): 72,567,108

Post recession year one attendance (2002): 67,944,389

Post recession year two attendance (2003): 67,630,052

I'm not suggesting the attendance decline in these two examples was caused by post-recession ennui. Indeed, in each example there were factors -- the Korean War and September 11th/Afghanistan/Iraq War -- which may have contributed to people turning their attention to things other than baseball in the ensuing years. That said, none of these events had such a great impact that they themselves led to recessions, so we shouldn't overstate their impact on baseball attendance.

A day later, Shawn Hoffman at Squawking Baseball had a somewhat different take on the matter:

Either way, Major League Baseball will almost certainly be hit by this slowdown. In fact, we wrote about this before, suggesting that teams should factor a possible economic downturn into their 2008 budgets.

That said, I’ve discussed this with some other sports business pundits, and most are convinced that the MLB revenue train is simply unstoppable at the moment. And while I agree that revenues will continue to grow in 2008, there is almost no chance that the sport’s core businesses (ticket sales, merchandise, advertising revenue, etc.) won’t be negatively affected.

During our last recession, the sport’s growth slowed to a virtual halt, as revenues rose just 1.9% in 2002. This was by far the lowest rate in the last twenty-five years, aside from the 1994 strike year.

Striking right in the middle of these arguments, other studies, like the October 2005 Issue of the Sports Economics Perspectives, have compared strikes to economic downturns and found that the former impacted attendance much more than the latter:

Historically, there has been a much greater and longer lasting attendance drop from a strike than from a recession. A significant portion of lost revenues from strikes is due to decreased attendance.  In the most recent 1994-1995 strike, it is estimated that attendance was down 15% shortly after the strike, was still down 12% in 2002.  With 1.5 billion dollars in ticket sales in 2002, that 12% drop in attendance equaled 180 million dollars in lost revenue.  And with 3.1 billion in merchandising and concessions in 2002, every slight drop equals a loss of millions more.

In both the 1982 and 1991 recessions, attendance levels dropped only slightly and recovered in line with economic growth in the three major leagues, notwithstanding the work stoppages.  During those recessions the sports industry fared better than manufacturing and most service sectors.  However, at the time, tickets were cheaper in real terms than they are now and team revenue depended less heavily on stadium specific income.

The analysis leads us to question how advertisers typically react to a slowing economy, something that should have an even more meaningful and profound effect on the revenue the game generates.  If fans don’t flock to the ballparks across North America as much as they did when money was flowing in, will the advertising dollars keep up, slow down or just branch out to different media or opportunities? 

In this interview with The Biz of Baseball in September of 2006, Dean Bonham (of the Bonham Group, a global sports and entertainment marketing firm) talked about the slowing economy after the tragedies on September 11, 2001:

Bizball: Has the overall economy in the US impacted how companies are approaching their sponsorship budget, and if so, how?

Bonham: Advertising and marketing budgets (of which sponsorships are an important part) took a hit in the wake of 9/11 and the recession that followed, but they have rebounded nicely since then.   Successful corporations recognize that marketing is a beast that must be fed in good times or bad.”

This argument seems to be backed up by data that was released following some studies of two recession periods:

In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies covering 16 different SIC industries from 1980 through 1985. The results showed that business-to-business firms that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. By 1985, sales of companies that were aggressive recession advertisers had risen 256% over those that didn't keep up their advertising.

In analysis of the 1990-91 recession, Penton Research Services, Coopers & Lybrand, in conjunction with Business Science International, found that better performing businesses focused on a strong marketing program enabling them to solidify their customer base, take business away from less aggressive competitors, and position themselves for future growth during the recovery.

The conclusion of the MacTech Magazine said it all:

A series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that advertising aggressively during recessions not only increases sales but increases profits. This fact has held true for all post-World War II recessions studied by American Business Press starting in 1949. 

One major business-to-business advertiser summed it up best. "When times are good, you should advertise. When times are bad, you must advertise."

With so much money coming in from the television deals and Major League Baseball Advanced Media (MLBAM) (read interview with its President and CEO, Bob Bowman) having just announced 450 M$ in revenue for the 2007 season alone, it would be very surprising to see fans running away from ballparks, television broadcasts or even the internet to get their baseball fix.

Adds Maury Brown of the Business of Sports Network and The Biz of Baseball:

Clubs have seen that by creating a variety of ticket package options, which all include multiple games, MLB should be able to continue adjusting to changes as the economy ebbs and flows. MLB understands that ticket sales are still their bread and butter, and will need to look closely at what cost increases are applied to their pricing structures during a possible downturn. The possible difference in economic downturns in the past and its impacts on baseball as an entertainment option may be that MLB’s increased development of television and the internet products provide new outlets for fans, and therefore, provide a stronger revenue stream for MLB than in the past. If you see that the cost of going to a game is too much, perhaps taking in MLB.TV, Extra Innings, or the upcoming MLB Channel provides fans a way to connects where those options were either not available, or not yet fully utilized during the last recession.

A recession will most likely slow growth for baseball, but at this point, with a number of teams adding new stadiums and the aforementioned MLB Channel coming online in ’09, the odds seem long at this point for a downturn for MLB’s revenues.

Lastly, MLB has at least one serious trump card, should they be faced with numbers that are not to their liking. Placing MLBAM as an IPO would garner a massive cash infusion to MLB. In 2000, MLBAM was said to be worth approximately $2 billion. There’s little doubting that it would be worth more now.

Baseball has been at the forefront of the technical advances on the internet and this may be their ticket out of the troubles a recession usually causes.

By diversifying their revenue streams, they made sure that the sport would be able to sustain its growth or at least avoid a painful decrease if one part of the puzzle began to fail.  With MLBAM continuing to expand and helping teams by dividing its profits, there is no reason to think that this recession will bring about a painful end to the stunning growth the game of baseball has seen in the last decade.


Dave Rouleau is a staff member of the Business of Sports Network.
 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?