The Business of Sports - Lowering Your Expectations?
With the economy still in the dumps, and discretionary income for millions of individuals dwindling, it comes as no surprise that sports franchises are feeling the pressure.
Â The equation is simple: Money out + Winning product on the field = Revenue. But often times this formula is easy in principle and difficult in execution.
Â Players have enormous salaries, the cost of running a franchise skyrockets, and oh yeah, if theyâ€™re losing, Owners take a big hit.
Â But this information shouldnâ€™t be some huge surprise to sports fans. What should be considered however, is how fans can and should approach this model.
Â Each offseason and as trade deadlines approach teams consider and reconsider their budgets. At the current economic stage, that usually comes down to cutting costs and not going for the big name player with the expensive contract.
Â Along with the decrease in spending comes fan outrage, and the seemingly unending sounds of â€œboosâ€ and resentment about ownership not putting the best product on the field.
Â But fans canâ€™t have it both ways. On one hand, we donâ€™t have the resources to spend sometimes hundreds of dollars on a day at the ball park; and thatâ€™s fine. But we canâ€™t complain when the owner says he doesnâ€™t have enough to buy the expensive free agent.
Â To be honest, itâ€™s not a blame game by any means. Fans in no way can be criticized about not heading to games because of financial reasons. And owners shouldnâ€™t be held to any more or less of that same standard. It just the fact, that in the business of sports, generally speaking, revenue drives, to a point the availability to get upper echelon talent.
Â Often times we lose sight of sports view for people involved. For many of us, itâ€™s entertainment. Something we look forward to and often live upon. For athletes, itâ€™s their livelihood. And for owners, many times itâ€™s a goal for enjoyment but whether theyâ€™re in it for fun or not, the underlying remains a business.
Â We all have expectations. Unfortunately, expectations usually come with costs. Sports is no different. If you have high expectations for your teams in the near future, expect those to come with a cost. If you donâ€™t want to, or canâ€™t afford them, we may all need to start thinking about lowering those expectations.
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