Sports still scoring big

While the stock market fluctuates on a daily basis and Americans everywhere worry about their job stability, there is one popular business that currently remains relatively unaffected by the economic crisis: professional sports.

Ticket prices may increase, but sports fans are still paying to see their idols shoot a three-pointer, score a touchdown or stop a breakaway.

Certain team sports such as basketball, hockey and football appear unaffected because most of their season ticket sales occurred before the stock market crashed, said Andrew Zimbalist, an economics professor at Smith College. Zimbalist also wrote several books on sports economics, including May the Best Team Win: Baseball Economics and Public Policy.

‘There hasn’t been a collapse yet, but sports will reflect the downturn pretty fully,’ Zimbalist said. ‘One thing that will give them padding is they have long term media contracts. Unless other networks go under, which I don’t anticipate, they’ll continue to have that buffer.’

The sport that is faring the worst is NASCAR, he said, as it depends on corporate sponsors and the automobile sector to a much greater percent.

‘[NASCAR] is getting clobbered,’ Zimbalist said. ‘The individual sports depend more heavily on sponsorship, so I think they are getting hit the hardest.’

Although there are no tricks for a team to avoid being hit by the recession, Zimbalist said, there are certain factors that, when combined, will help a team stay successful.

‘[The] standard recipe is to have a good competitive team, good marketing, and programs in the community,’ he said. ‘Those work the best. The teams that do that most successfully will fare better [but] all teams are being hit.’

WOES OF THE PROS

Boston is slowly becoming the dominant town in professional sports. The Boston Celtics are following up a National Basketball Association championship season and the Boston Bruins are holding a top spot in the National Hockey League Eastern Conference. Their winning seasons minimize the effects of the recession on teams, team representatives said.

The Bruins are feeling the economic pinch mostly in corporate areas, such as corporate ticket purchases, advertising within TD Banknorth Garden and the purchasing or leasing of premium suites, according to Bruins’ Vice President of Business Operations, Dan Zimmer.

‘Attendance has been strong and increasing,’ Zimmer said. ‘The team is playing very well this year, so for us, ticket sales are higher than in the past. We’re not feeling effects as much as you would think.’

Executive suites at the TD Banknorth Garden accommodate 18-21 people, and prices range from $3,150 to $4,410 for one game, according to the Bruins website. Individual ticket prices for one game range from $16.50 to just shy of $200.

Zimmer said the Bruins are trying to be more aggressive on structuring their sales programs to fit the budgets of the corporations that want to advertise with them.

‘We’re really pleased with the strong fan base,’ he said. ‘Hockey has always been a strong sport in Boston. Even in weak economic conditions, our attendance and ticket sales are up over last year.’

The Boston Celtics decided to reward their fans by keeping ticket prices flat for the 2009-10 season. In a Feb. 5 press release, the Celtics announced they will not increase season ticket holder lodge and balcony ticket prices.

‘We are extremely lucky to have such a loyal and passionate season ticket holder base, and we want them to know how much we truly appreciate their support,’ Boston Celtics Team President Rich Gotham said in the press release. ‘While we have continued to invest in a championship caliber team, we recognize the economic climate has changed, and we want to make it easier for our fans to continue to cheer for the Celtics at the Garden next season.’

The Celtics also announced in the press release that for the first time, they will institute a 12 month interest-free payment plan option, allowing season ticket holders to spread both their 2009 playoffs and 2009-10 season ticket payments over the next year.

‘We have made the decision to . . . ease the burden of heavier upfront payments this spring,’ Boston Celtics Chief Marketing Officer Shawn Sullivan said in the release. ‘We know flexible payment options are a necessity right now for our clients and we’re happy to deliver just that.’

As loyal hockey and basketball fans continue to provide support to their sports, professional soccer is also holding its own against a tough economy, as its ticket sales remain steady, according to Lizz Summers, the director of communication for the New England Revolution, Boston’s professional soccer team.

Summers said soccer is in a strong position, at a time when’ overall interest in the sport is growing.

‘[Soccer] have not been affected as you may have seen others,’ she said. ‘It’s an entirely different season ticket pack, discounted regardless of the economy. We’re a different entity because our value point, our price point, is at a much different level.’

Individual ticket prices range from about 15 to 20 dollars Summers said, and the Revolution also offers free parking, which helps keep them ‘a little bit of a different entity.’

‘Season ticket sales are on par, if not ahead,’ she said. ‘In ticket sales we’re doing very well. Soccer is still growing. There’s a line of cities trying to get into the door to get teams.’

Since ticket prices are lower than other sports, it might be more appealing for families and young adults to attend a soccer game, she said.

‘It’s a lower price point for you,’ Summers said. ‘The most passionate, die hard supporters are very much the young adult crowd.’

Summers also said the Revolution has long-term deals for advertising and are increasing their advertising to online, adjusting to where the marketing deals are. That specific move has nothing to do with the economic issues, she said.

THE TERRIER TAKE

Similar to the rest of the university, Boston University athletics are also feeling the economic aftermath, and are experiencing similar cutbacks, since the two are connected, said BU Athletic Director Mike Lynch.

‘Contractions here haven’t been as severe as other places around the city, such as [schools] with huge endowments, like Harvard and MIT,’ he said. ‘We’re watching our spending very carefully.’

Terrier athletics asked for a voluntary cutback in the coaching community, Lynch explained. They are paying close attention to travel budgets, asking coaches to find cheaper flights, bringing fewer players on the road and avoiding overnight travel and lodgings when available.

‘From a ticket sales point we seem to be holding pretty well,’ he said. ‘We’re honing in on our projections. The men’s hockey team has been helpful to us and has a very strong season ticket sales base. Not a lot of seats are for sale at a game by game basis.’

The approach of BU’s premium seating and sponsorship renewals will also help the programs, but the effects of these renewals might take longer to notice, Lynch said.

Since businesses are making cuts, Lynch said it made sense that entertainment areas, such as premium seating at sporting events, would be one of the first areas to get cut. However, he said professional sports teams will feel the recession more than college teams because of the pricing difference in ticket sales.

‘At least at our level, pricing is so much less here,’ he said. ‘[We’re] hoping we will get some pro sports followers to follow us, instead.’

Additionally, public universities will be affected more than private institutions ‘- like BU ‘- because they are funded or supported by state aid, Lynch said.

‘It gives us more flexibility,’ he said. ‘We’re not as dependent on state aid as a lot of the state institutions.’

BU’s summer aid allocation for athletes is another area that Lynch said might receive some cutbacks. The university has a $12 million scholarship budget that goes to support athletes in the summertime, which Lynch said they will ‘take a hard look at.’

‘Because the university doesn’t have a huge endowment, we [rely] a lot on our ability to provide aid for students,’ he said. ‘It may mean some cutbacks in the amount of summer aid.’

Overall, some sports will be affected more than others, Lynch said. Lower tiered sports might have to spend more on scholarship money to attract candidates.

‘I just think that this is a serious issue that we’re paying very close attention to every day,’ he said. ‘I’m hopeful the changes will let us stay competitive and do what we can to be fiscally responsible.’