Kukla's Korner Hockey
Talking Economic Crisis
by Paul on 10/24/08 at 09:47 AM ET
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from Derrick Goold of the St. Louis Post-Dispatch,
During a recent lecture at UCLA, Patrick Rishe showed his “Economics of Sports” class how the professional sports industry, shielded in the past in many ways from a fickle or distressed economy, won’t be unscathed by the current economic crisis….
Two supports could keep the major sports from suffering as much as other industries: long-term TV contracts and collective bargaining contracts that tether player salaries to revenues.
“Salaries in all sports — salary caps or revenue sharing or luxury tax sports — whatever their salaries are have fallen with revenues,” Zimbalist said. “It’s not lockstep, but as one goes up the other goes up. If revenues flatten out, which is likely, we’ll see a similar (event) with salaries, and it could be for a few years. ...
Much of that will be because television contracts, the centerpiece of professional sports’ big revenues, are locked in. MLB’s broadcast deal is worth $5.4 billion and lasts until 2013. The NFL receives an estimated $3.7 billion a year from its partner networks, the NBA’s broadcast deals are fixed to 2016 and the NHL’s contract with the Versus network goes through 2011.
more with a look at St. Louis teams…
Filed in: NHL Teams, NHL Talk, NHL Business of Hockey | KK Hockey | Permalink
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