Vincent cries "Wolf"
Scott Barman
>In article <1991Feb13....@nbc1.ge.com> sc...@nbc1.GE.COM (Scott Barman) writes:
>
>The big bucks are coming from CBS TV, then ESPN. Local radio and TV
>have always been major players, and the fastest growing contribution
>may be from rights fees on logos, souvenirs, etc. Ballpark revenue
>is only a fraction of the total. Budweiser, GM, Toyota, etc., spend
>millions supporting sporting events because they know that that's
>the most cost effective way influence the buying habits of working
>males, who are otherwise hard to get the attention of.
Budweiser has DECREASED its sports advertising by 15% over the last two
years and that trend looks to continue. Toyota recently announced that
because of slower car sales and the US economy, they are exporting
upwards of 10,000 fewer cars to the US. With that in mind, do you
really think they are going to step up advertising.
According to one of the trade publications (I think NBC Sports is using
an article from [I think] "Electronic Media"), overall spending on
sports advertising is down an average of 8% and none of the new high
priced packages are selling well with one exception: The NBA on NBC
which sold out faster than any package in sports television. However,
lower ratings may dictate that not to be as successful as that sounds.
>The marketplace dictates. CBS made a mistake, and they are losing money
>for it. In my opinion, any owner who makes commitments beyond the
>current TV contract, based on expectation of similar revenue in the
>future, is also making a big mistake. Fans don't have to go to baseball
>games, but if the Cubs can continue to sell out Wrigley at an average
>of $10 a ticket (pure speculation), why not raise the price to $12?
>If times are truly hard, fans won't attend. More importantly,
>they won't buy cars. However, they will still buy Pespi and/or Coke,
>beer and insurance, and even in tough times advertising is important.
People are not buying cars, beer sales are off 4% nationally, and
everything but clothes and food have shown a decline in sales. Thirty-six
states have reported lower revenues because of the cut back in buying.
If folks ain't buyin', do you really think they'll buy baseball? No
hardly!
>Is it enough that 8-10 different ownership groups around the country
>were prepared to spend $95 million in franchise fees just for the
>privilege of having a major league team and being allowed to buy
>a $2 million a year washed up pitcher? And the problems of those
>smaller city teams isn't attendance related. It's media market
>size related.
Oh it is? Atlanta, technically, is a smaller market than Pittsburgh and
there's no threat (yet) of Atlanta running to Florida. Seattle is one
of the smallest market in the league and they are still around.
Minnesota is not doing to badly. And Kansas City (market) is smaller
than Pittsburgh and they are not running for Tampa either. [I use
Pittsburgh here because they are screaming the loudest right now]
>If enough fans feel this way, then practices will change. However,
>MLB has enjoyed a recent surge in popularity, and prices reflect
>that fact.
Is this why MLB attendence went down last year? Is this why pre-season
sales for BOTH teams in the nations #1 TV market is behind last year?
The recent surge could (and I said COULD) be slowing down.
>. The baby boomers are in their 30's now. They have lots
>of disposable income, and many of them have children. Going to
Gee... I'm in my 30s and I don't seem to have lots of disposable income!
Maybe if I have children I would find this disposable income!
>Don't take this as a flame. I agree that salaries are ridiculous,
>and maybe even that tickets are expensive (since I don't go to
>that many games, I really don't feel the bite). I feel more or less
>the same about movie stars and movies, though, and while we're
Just let's say actors or the entertainment business in general. Many of
them are over paid for what they do. I've been around live events for
NBC and I've seen what the talent does before during and after events.
The only reason they are getting the money is because they are in front
of the cameras. Which is really stupid because it is the people behind
who make them look good! (I better stop this now! :-)
--
scott barman | There comes a time in everyone's existance
sc...@nbc1.ge.com | when actions speak louder than words.
(This does not represent any | Just make sure your actions are louder
opinions of NBC or affiliates) | than the next guy's! - Anonymous