Sports and the Economy

When the economy goes south, what happens to sports marketing and advertising budgets? They decrease!



This recession proof industry, or so it claims, hasn't seen a recession like this in the modern sports era. Financial institutions, apparel giants, media conglomerates, and every imaginable industry are cutting back. So what makes sport immune to our economic meltdown?

Well, nothing! Modern sports venues are sponsored by the likes of Gillette, Lucas Oil, Citizens Bank, Wachovia, Target, McDonalds, and Staples to name just a few. But as these company's profits and shares of stock plummet, will they continue to sponsor sports arenas when money can be spent on driving consumers to purchase products?


I believe company's are going to be taking a long, hard look at where they are spending money. Is it worth forking over cash indescrimantly? And, who will have to pay for the losses in revenue that the owner sees. Will it be the fans, the players, or the entertainment experience? The sports industry thinks its recession proof, right? Well, who has taken a hit so far from this meltdown? The housing industry, financials, reatailers, consumers, the automobile industry have all taken blow after blow to the abdomen. Well, guess what there may be a trickle down affect.

I hope I am wrong!