Sports And Economics
Micah Weinstock
IHSS
Mr. Roddy
27 February 2020
Sports And Economics Article
Sports have always been important in the American heart and mind. Suddenly, there is a pandemic
of proportions to cause a shutdown of most sports worldwide as well as most people living in a
“quarantine”. Now there are not only questions as to when will these sports open up, but
additionally, when they do, will there even be people in the stadium? I wanted to get a better grip
on what the future holds for all sports worldwide, in addition to the financials of that. I spoke to
two men, Stan Fischler and Seth Wolfish, regarding this topic.
of proportions to cause a shutdown of most sports worldwide as well as most people living in a
“quarantine”. Now there are not only questions as to when will these sports open up, but
additionally, when they do, will there even be people in the stadium? I wanted to get a better grip
on what the future holds for all sports worldwide, in addition to the financials of that. I spoke to
two men, Stan Fischler and Seth Wolfish, regarding this topic.
Stan has been working in journalism for over 65 years. He even won a Lester Patrick Trophy.
Stan was hesitant to give an answer on a few matters because it was all speculation. When asked,
“When do you think hockey will return?”, he responded, “There’s absolutely no way of figuring
it out, because of the health variables. There is [sic] so many complications to this in terms of
various states and you’re dealing with Canada, and you're dealing with the… We don't know. And
that's what it comes to.”
Stan was hesitant to give an answer on a few matters because it was all speculation. When asked,
“When do you think hockey will return?”, he responded, “There’s absolutely no way of figuring
it out, because of the health variables. There is [sic] so many complications to this in terms of
various states and you’re dealing with Canada, and you're dealing with the… We don't know. And
that's what it comes to.”
After I spoke with Stan, I got to talk with Seth Wolfish, who spent some time with
ticketing for several NHL organizations. He believed that there is definitely going to be a struggle
to sell tickets as they would have before. “I’d imagine for sure that… I’d be shocked if that didn’t
happen.”
ticketing for several NHL organizations. He believed that there is definitely going to be a struggle
to sell tickets as they would have before. “I’d imagine for sure that… I’d be shocked if that didn’t
happen.”
It is abundantly clear that leagues are going to struggle when they come back in the
American market. But overseas leagues are actually enjoying a decent amount of success from
being the only professional sports currently playing. Just this week with the return of Bundesliga
soccer, it set a new record for most viewers for several television channels. More people have
become exposed to the likes of Japan’s NPB (Nippon Professional Baseball) and Korea’s
KBO (Korea Baseball Organization). But T.V. isn’t everything. Should the NBA return without
fans in attendance, they would lose about 40% of the revenue per game.
American market. But overseas leagues are actually enjoying a decent amount of success from
being the only professional sports currently playing. Just this week with the return of Bundesliga
soccer, it set a new record for most viewers for several television channels. More people have
become exposed to the likes of Japan’s NPB (Nippon Professional Baseball) and Korea’s
KBO (Korea Baseball Organization). But T.V. isn’t everything. Should the NBA return without
fans in attendance, they would lose about 40% of the revenue per game.
The NFL is in much better standing as even though their viewership has been dropping
for years, they are still making more money than they ever have. This is achieved by signing
the T.V. deals. This creates over half of all the money that the NFL makes. Adding to the large
amount of cash made are the licensing and merchandising deals signed. The tickets sold don’t
actually matter that much in the long run for an NFL team. They only get to keep around 8%
of sales as profit.
for years, they are still making more money than they ever have. This is achieved by signing
the T.V. deals. This creates over half of all the money that the NFL makes. Adding to the large
amount of cash made are the licensing and merchandising deals signed. The tickets sold don’t
actually matter that much in the long run for an NFL team. They only get to keep around 8%
of sales as profit.
A group that is going to be heavily affected by said sports shutdown is the workers.
While on average, the 456,000 people employed by a sports based job earn more than double
the federal minimum wage ($39,000), That still isn't enough to support them. If they were living
in California on said $39,000, that isn’t even half of the $99,971 living wage.
While on average, the 456,000 people employed by a sports based job earn more than double
the federal minimum wage ($39,000), That still isn't enough to support them. If they were living
in California on said $39,000, that isn’t even half of the $99,971 living wage.
Another group that is tremendously affected are the growing leagues. Despite the fact that
football is king in America, we still find room for even more sports. Through the launch of the
league in 1996 to becoming the fastest growing sport in America, the MLS has been on a
ridiculous trajectory to becoming a part of the “Big 4” of American sports - NFL, NBA, MLB,
and NHL - which would subsequently have to become the “Big 5”. The surprising part about
the popularity of the MLS is that it is barely behind the MLB. A 2018 Gallup poll found that
while nine percent of Americans list the MLB as being their favorite league, while seven
percent said they prefer the MLS. The MLS has received a 27% increase in interest
throughout the United States. Another sport that was very quickly gaining ground in the
US is lacrosse. A report from 2015 stated that the sport was growing by about 45% participation
and incredible expansion in NCAA lacrosse programs.
football is king in America, we still find room for even more sports. Through the launch of the
league in 1996 to becoming the fastest growing sport in America, the MLS has been on a
ridiculous trajectory to becoming a part of the “Big 4” of American sports - NFL, NBA, MLB,
and NHL - which would subsequently have to become the “Big 5”. The surprising part about
the popularity of the MLS is that it is barely behind the MLB. A 2018 Gallup poll found that
while nine percent of Americans list the MLB as being their favorite league, while seven
percent said they prefer the MLS. The MLS has received a 27% increase in interest
throughout the United States. Another sport that was very quickly gaining ground in the
US is lacrosse. A report from 2015 stated that the sport was growing by about 45% participation
and incredible expansion in NCAA lacrosse programs.
Are sports worth the overall cost? America is currently building many new sports arenas
and fields, but is it worth the tax dollars? Many would say no as most of the time, the belief
that the city will see jobs and economic gains along with the team is just a hope, not 100% true.
Though, we do see incredible output from some events. The New York Marathon did very well
for the city’s economy. Also the sporting industry provides half a million jobs in the United
States that pay more than double minimum wage on average. It really is up to interpretation
as one may have to be in it for the long run to see sufficient returns, every team is essentially a
lottery ticket.
and fields, but is it worth the tax dollars? Many would say no as most of the time, the belief
that the city will see jobs and economic gains along with the team is just a hope, not 100% true.
Though, we do see incredible output from some events. The New York Marathon did very well
for the city’s economy. Also the sporting industry provides half a million jobs in the United
States that pay more than double minimum wage on average. It really is up to interpretation
as one may have to be in it for the long run to see sufficient returns, every team is essentially a
lottery ticket.
Overall, sports make a lot of money per person and were growing very quickly. But, they
are so integrated into the culture that we don't see anything as “the NFL” but rather “our team.”
We must stop thinking of sports as a leisure or fitness activity because that is quickly becoming a
worse explanation to what it is. It is a rallying point. It is something to have conversations
about with people on the other side of the globe. It is great that we continue to pour a lot of money
into sports because of the cultural value, but currently I am not so sure that we will see many
economic returns from these sports at the moment.
are so integrated into the culture that we don't see anything as “the NFL” but rather “our team.”
We must stop thinking of sports as a leisure or fitness activity because that is quickly becoming a
worse explanation to what it is. It is a rallying point. It is something to have conversations
about with people on the other side of the globe. It is great that we continue to pour a lot of money
into sports because of the cultural value, but currently I am not so sure that we will see many
economic returns from these sports at the moment.
The economics of sports, while not always presented with the same glamour of
the “Top 10 Plays Of The Night” are, in reality, everything that sport revolves around.
the “Top 10 Plays Of The Night” are, in reality, everything that sport revolves around.
Sources:
Gwen, Burrow. “Not Just a Game: The Impact of Sports on U.S. Economy” Economic Modeling,
https://www.economicmodeling.com July 9, 2013
LoRé, Michael. “Soccer's Growth In U.S. Has International Legends Buzzing” Forbes,
https://www.forbes.com April 26, 2019
Pierro, Jeffery. “The Impact of Professional Sports Franchises on Local Economies” Bryant
University, https://digitalcommons.bryant.edu April 2014
Depta, Laura. “12 Ways Sports Make a Positive Impact” Bleacher Report,
https://bleacherreport.com February 2, 2015
Zimbalist, Andrew; Noll, Roger. “Sports, Jobs, & Taxes: Are New Stadiums Worth the Cost?”
Brookings Institution, https://www.brookings.edu June 1, 1997
North, Douglass. “The Process of Economic Change” The United Nations University,
https://www.wider.unu.edu March 1997
Norman, Jim. “Football Still Americans’ Favorite Sport To Watch” Gallup,
https://news.gallup.com January 4, 2018
“Gaining Ground: Major League Soccer Popularity In The U.S.” Nielsen,
https://www.nielsen.com July 31, 2018
“The Rapid Rise of Lacrosse in The United States” Lax Camps,
https://laxcamps.com May 15, 2015
Gough, Christina. “Gate receipts as percentage of total revenue in the National Football League from 2010 to 2018” Statista,
https://www.statista.com Jan 14, 2020
Eckstein, Jakob. “How The NFL Makes Money” Investopedia,
https://www.investopedia.com Sep 24, 2019
Borden, Taylor, Davis, Dominic-Madori. “Here's the income you need to live comfortably in every state in the US” Business Insider,
https://www.businessinsider.com Apr 20, 2020
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