Undisputed Champs in a Disputed Sport
Economist.com
Link: http://www.economist.com/blogs/gametheory/2015/01/business-college-football?zid=319&ah=17af09b0281b01505c226b1e574f5cc1
The playoff system was just introduced this year in college football, and it already is causing some controversy. Ohio State, Texas Christian, and Baylor were all in the running for the fourth and final spot in the tournament. TCU was ranked 3rd in the nation at the time while OSU and Baylor were both out of the top 5. With a dominating win in their conference title game, many thought that TCU should have earned the fourth spot. However, OSU somehow managed to jump ahead and slip in the tournament and eventually win it all.
Over 27 million people tuned into the championship game, making it the most watched program on cable ever. During this game, advertisers bought out 30 second commercial spots for over $1 million. This is absolutely ridiculous. It is almost as much as the Super Bowl. Whats even more astonishing is that ESPN bought a $7.3 billion contract for the rights to broadcast the game for the next 12 years. College sports are starting to turn into professional sports with these numbers. I think the NCAA needs to really think about whats really going on. Its all about the money and everyone knows it.
The NCAA already gives out football's 5 best conferences $50 million dollars each year. Teams in the "non-power" conferences only get around $13 million, making it tough to compete with the already powerful schools. College football is becoming more corrupt. People are only concerned about the money. I would hate to see it end up like the NFL.
Thursday, January 15, 2015
Frozen Finances
Economist.com
Link: http://www.economist.com/blogs/gametheory/2015/01/currency-and-ice-hockey?zid=319&ah=17af09b0281b01505c226b1e574f5cc1
As Canada is exporting less and less, the value of their dollar is going down. In the past 6 months it has fallen from $0.98 to $0.85 when compared to the US dollar. This is a very significant change of $0.13. This means that the Canadian teams in the National Hockey League are also worth less when being compared to NHL teams in the US. Canadian teams in the NHL are now suffering.
NHL salaries are paid in American dollars and players contracts require the teams to pay it. Since the Canadian dollar is declining, it is tougher for the teams to dish out the money they earn. These Canadian teams are in a dilemma because of this.Teams based in Canada bring in more than half of the NHL's total profits. In order to keep making this profit, teams may have to charge more for game tickets, team gear, apparel, etc... However, they are unsure how the fans will react to this. Fans could just find other teams to cheer for and not buy apparel or come to the games. This would in turn hurt the league because of the great percentage of profit these Canadian teams bring in.
I do not think this will affect the NHL as much as the author of the article thinks it will. Eventually, the Canadian dollar will go back up again. It is only a matter of time. Hockey is the national sport of Canada, so fans will not be giving up on their teams anytime soon. If the price of a ticket or jersey goes up a few bucks, I do not think people will be unwilling to buy it. They are expensive enough as it is, so whats a few more dollars?
Economist.com
Link: http://www.economist.com/blogs/gametheory/2015/01/currency-and-ice-hockey?zid=319&ah=17af09b0281b01505c226b1e574f5cc1
As Canada is exporting less and less, the value of their dollar is going down. In the past 6 months it has fallen from $0.98 to $0.85 when compared to the US dollar. This is a very significant change of $0.13. This means that the Canadian teams in the National Hockey League are also worth less when being compared to NHL teams in the US. Canadian teams in the NHL are now suffering.
NHL salaries are paid in American dollars and players contracts require the teams to pay it. Since the Canadian dollar is declining, it is tougher for the teams to dish out the money they earn. These Canadian teams are in a dilemma because of this.Teams based in Canada bring in more than half of the NHL's total profits. In order to keep making this profit, teams may have to charge more for game tickets, team gear, apparel, etc... However, they are unsure how the fans will react to this. Fans could just find other teams to cheer for and not buy apparel or come to the games. This would in turn hurt the league because of the great percentage of profit these Canadian teams bring in.
I do not think this will affect the NHL as much as the author of the article thinks it will. Eventually, the Canadian dollar will go back up again. It is only a matter of time. Hockey is the national sport of Canada, so fans will not be giving up on their teams anytime soon. If the price of a ticket or jersey goes up a few bucks, I do not think people will be unwilling to buy it. They are expensive enough as it is, so whats a few more dollars?
Friday, December 19, 2014
Not Just a Game: The Impact of Sports on US Economy
Economicmodeling.com
Link: http://www.economicmodeling.com/2013/07/09/not-just-a-game-the-impact-of-sports-on-u-s-economy/
Americans love sports. Football, hockey, baseball, soccer, basketball, you name it. The sports industry in America is huge, even bigger than most think. This industry brings in close to $15 billion each year. The money behind sports goes far beyond the teams and the players. It benefits the towns and the people as well. Sports provide over 450,000 jobs that help benefit the economy. The truth is, without sports, the US would not be the country that it is today.
The sale of items that are sports related are outrageous. Jerseys, shirts, gear, balls, the list goes on and on. Even food sold at sports venues could be considered in this category. Sports are very important in the economy. Without sports, cities would not be what they are today. Even college towns would not be the same. College sports could also be included in this huge, growing industry. The fact is that the sports empire will and always will be huge in the American economy.
Tuesday, December 16, 2014
NCAA's Elimination of Sanctions Will Have Huge Impact on Penn State and Big Ten
Athlonsports.com
Link: http://athlonsports.com/college-football/ncaas-elimination-sanctions-will-have-huge-impact-penn-state-and-big-ten#main-content
Penn State took a huge hit when they were told they would not be bowl eligible for 5-10 years. This ruling did not only frustrate the players and coaches, but the entire Penn State community. The sanctions also took away from PSU's opportunity to compete in college football. By taking away scholarships and scholarship money, the NCAA took away what many thought was unjust for the actions of a few people. Things were not looking bright for Penn State football, until recently. In early September the NCAA lifted these sanctions from the university, thus giving them a chance to play in a bowl game and build up a strong recruiting class. Just like that Penn State was back in it.
Hundreds of millions of dollars are gained every year through college football bowl games. They are very important for schools who heavily rely on sports to bring in money. Penn State once again has the chance to make millions in a bowl game. With this opportunity now possible, fans will be going crazy in State College. Ticket, jersey, and apparel sales will increase with this new ruling. The NCAA will also be seeing some of this cash. That is honestly why I think they lifted the sanctions in the first place, for the money. This ruling will change PSU and their conference in a major way. PSU now has the ability to reach the milestones that players and fans are used to seeing.
Athlonsports.com
Link: http://athlonsports.com/college-football/ncaas-elimination-sanctions-will-have-huge-impact-penn-state-and-big-ten#main-content
Penn State took a huge hit when they were told they would not be bowl eligible for 5-10 years. This ruling did not only frustrate the players and coaches, but the entire Penn State community. The sanctions also took away from PSU's opportunity to compete in college football. By taking away scholarships and scholarship money, the NCAA took away what many thought was unjust for the actions of a few people. Things were not looking bright for Penn State football, until recently. In early September the NCAA lifted these sanctions from the university, thus giving them a chance to play in a bowl game and build up a strong recruiting class. Just like that Penn State was back in it.
Hundreds of millions of dollars are gained every year through college football bowl games. They are very important for schools who heavily rely on sports to bring in money. Penn State once again has the chance to make millions in a bowl game. With this opportunity now possible, fans will be going crazy in State College. Ticket, jersey, and apparel sales will increase with this new ruling. The NCAA will also be seeing some of this cash. That is honestly why I think they lifted the sanctions in the first place, for the money. This ruling will change PSU and their conference in a major way. PSU now has the ability to reach the milestones that players and fans are used to seeing.
Sunday, November 23, 2014
Students Are Not Professional Athletes
USnews.com
Link: http://www.usnews.com/opinion/articles/2014/01/06/ncaa-athletes-should-not-be-paid
Every year a question pops up about athletes being able to receive money from their schools. More often than not the schools being discussed are Division 1 schools. These schools give everything to their athletes, housing, clothing, food, and most importantly a free education. It is ridiculous that college level athletes think that they are entitled to money as well. They are there for an education, not simply to play a sport. College should not be about sports, it should be about preparing yourself for the rest of your life. This is what college athletes should be focused on. After all, only 2% of them end up playing a professional sport anyway. It is ridiculous that they should be paid money on top of all of these benefits.
The reason I prefer watching college sports over professional sports is because of effort and hustle. College athletes are playing purely for the love of the game. Professional athletes are playing more for the money in most cases. If you give college kids money, that will ruin sports in my opinion. If we pay athletes in college, that would take away from the excitement of playing professionally. If an athlete is really good enough to make money through a sport, then he will get picked up by a pro team and make money there.
College kids should worry about getting a degree and creating good habits for themselves. They need to worry about their futures, not about sports. Most college age kids would not even know what to do with money if they were paid through sports. Leave money out of sports until the professional level.
USnews.com
Link: http://www.usnews.com/opinion/articles/2014/01/06/ncaa-athletes-should-not-be-paid
Every year a question pops up about athletes being able to receive money from their schools. More often than not the schools being discussed are Division 1 schools. These schools give everything to their athletes, housing, clothing, food, and most importantly a free education. It is ridiculous that college level athletes think that they are entitled to money as well. They are there for an education, not simply to play a sport. College should not be about sports, it should be about preparing yourself for the rest of your life. This is what college athletes should be focused on. After all, only 2% of them end up playing a professional sport anyway. It is ridiculous that they should be paid money on top of all of these benefits.
The reason I prefer watching college sports over professional sports is because of effort and hustle. College athletes are playing purely for the love of the game. Professional athletes are playing more for the money in most cases. If you give college kids money, that will ruin sports in my opinion. If we pay athletes in college, that would take away from the excitement of playing professionally. If an athlete is really good enough to make money through a sport, then he will get picked up by a pro team and make money there.
College kids should worry about getting a degree and creating good habits for themselves. They need to worry about their futures, not about sports. Most college age kids would not even know what to do with money if they were paid through sports. Leave money out of sports until the professional level.
Wednesday, November 19, 2014
How Much is a Sports Rivalry Worth?
Slate.com
Link:http://www.slate.com/articles/business/rivalries/2013/08/sports_rivalries_the_economics_of_crosstown_hatred.html
Baseball games between the Boston Red Sox and the New York Yankees are the most intense and competitive games a person could attend. The venues these games are played in, Fenway Park and Yankee Stadium, skyrocket their ticket prices when the two teams play each other. Both teams are very large market and are the two most valuable teams in the MLB today. The week the teams play each other, everyone knows it. The rivalry games are hyped up all over the place, whether it is on television, radio, or in the newspaper.This hype only leads to an increase in sales and team revenue. One report shows that in Utah's rivalry game with BYU, sales increase close to 75% in just one week. This is a huge change and I am certain that this sales number also goes up in rivalry games across the board. By promoting these rivalries, the teams skyrocket their sales.
Many people do not realize it, but creating rivalries is a great method in team marketing. The NFL even changed divisions up so that the teams would be closer together and fans would become more hostile toward each other. Sports are crazy nowadays and can even get out of hand sometimes. I remember last year in the rivalry game between Michigan and Ohio State when a fight broke out. Both benches were cleared and the fans were cheering on the fight. When it was all said and done three players were tossed from the game, one of them left the stadium flipping off the crowd. I would agree with the statement that rivalries are good for sports, not just for the revenue, but for the fun that comes along with them.
Friday, October 31, 2014
Why Wrigley is Suddenly So Empty
Wsj.com
Attendance at Wrigley Field, home of the Chicago Cubs, has
been dwindling down over the past two decades. Fans would rather do other
things in their free time than attend a baseball game. The cold weather, high
prices, and lousy team all contribute to this. The opportunity cost of attending
a Cubs game is too high, and Chicago fans know it. Why attend a Cubs game when
you could do more productive activities with a much lower opportunity cost?
Cubs games were much more popular to attend years and years
ago. It was more of a social event. Fans went there to enjoy themselves. They
went there to drink and eat food. Nowadays, drunk fans are escorted off the premises.
Baseball and society has changed over the past few years and this is another
contributing factor as to why attendance is low.
Baseball is obviously dwindling in Chicago. People have no
interest in the players or the sport. Chicago is overrun with violence and
gangs. This is another reason why I think attendance at games is low. Chicago
is a city rich in sports history and it is sad to see this happening.
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