Tough Economy Doesn't Spare Professional Sports

Even professional sports can’t even this economic crisis.

The economy is affecting everything from family-owned businesses to the NFL. 

It was announced on December 9, that the NFL was going to be cutting about 10 percent of their staff due to the economy.

Also, in September the NBA stated that they had to release about nine percent of their staff.

The Arena Football league stated on December 14 that the league would not play the 2009 Arena Football season.

MLB has seen its attendance dip for the first time in four years. And NASCAR probably is the hardest hit by this. Even though teams in Massachusetts are some of the most successful franchises in sports, they are still jacking up their prices for tickets.

The NFL said that they would have to release about 150 people in their staff in NFL Films in New Jersey, Internet production facilities in Los Angeles, and their front office in Manhattan. According to commissioner Roger Goodell, “These are difficult and painful steps, but they are necessary in the current economic environment.”

The teams within the league are also affected but none are connected with the troubles the front office have. The Dallas Cowboys, New York Giants and New York Jets are asking hundreds of thousands of dollars from season ticket holders for seats in their new stadiums.

Goodell said that there would be a price cut on some Super Bowl tickets, but 25 percent would be priced at $1000—an all-time high.

The NBA was the first team to announce layoffs because of the economic depression. They cut 80 employees from their league office.

Commissioner David Stern said, "We made the decision some months ago that the economy was going to be a bit wobbly, so we began a belt-tightening."

They are still hiring in other countries, though, to try and expand internationally. Stern said that the NBA is still hitting its buisiness targets.

NASCAR is losing sponsors like Chevrolet, and General Motors. GM has failed to renew their sponsorship for NASCAR's biggest race—the Daytona 500. They will also be slow to gain sponsorship revenue in 2009. Expansion into untraditional markets like New York and Seattle is on hold. They said attendence to races are down in the single digits.

Several tracks, like Michigan International Speedway are cutting prices up to 23 percent for races this year.

Jeff Gordon, one of NASCAR's most popular drivers, won no races and saw his and NASCAR's popularity dip. He lost two sponsors this season—Nicorette and Geogia Pacific—though the National Guard and GP might sign to back up Gordon.

Another driver, Kevin Harvick, told team owner Richard Childress that he would be willing to take a pay cut if the level of competition would stay the same.  

The MLB champion Red Sox have the highest average ticket price, $48.88. The New York Yankees, though, seem to be the team in the MLB that have not been affected by the economy. They recently signed huge contracts with CC Sabathia, (seven years, $161 million) and Mark Teixeira (eight years, $180 million).

Last year, the Yanks signed Alex Rodriguez to a ten-year, $258 million contract, and they signed AJ Burnett to a five-year $82.5 million contract.

Other teams have been going for more low-key prices on superstars, though. Teams have been signing underrated players.  For example, San Francisco Giants just signed Edgar Renteria and two relievers.

But to do this teams have let players go to the free agent market then offer them an extension. Hopefully, the economy will be able to recover and we won't have to worry about this crisis for much longer.