Peak Pro Sports: Can A National Quasi-Religion (Pro Sports) Go Broke?

Peak Pro Sports

Attending costly games is on the margins of the household budget. When the credit card gets maxed out, attending is no longer an option.

Please understand I’m not suggesting professional sports isn’t the greatest thing since sliced bread: I’m simply asking if attending pro sports games has become unaffordable to the average American.

Who cares as long as we can watch the games for free on television, right? That raises another issue: in the next recession, will advertisers still pay billions of dollars for broadcast TV ads on sports channels when ads on mobile devices distributed via Big Data analysis can directly target the (shrinking) populace who still has disposable income to spend?

Before we look at the money side of pro sports, let’s note the glorious shared experience of “our team” winning and hated rivals losing. Sports is one of the few experiences that unites a remarkably diverse populace, and one of the few spheres of life that isn’t politicized to ruination.

We all get to live vicariously through sports, and the stranger cheering beside us is suddenly a “friendly” in a largely hostile world.

With apologies to Dallas Cowboys fans: Joe Montana to Dwight Clark– The Catch in January 1982: (Cowboys fans have many memorable moments to savor, including a number in this game)

The-Catch

The problem is that attending a game is prohibitively expensive. A seat in the nosebleed section might only be $15, but there’s parking (or train fare), and the $10 beer and the $10 hotdog. That’s $40 – $50 for one fan or $80 for two people.

Given that the average wage is $44,000, $80 for “cheap seats at the game” is not inconsequential. Given that many clubs are now pricing tickets by demand, it’s easy for two people to spend $200 to attend a game.

How many people can afford to attend games on a regular basis without maxing out a credit card or drawing on a home equity line of credit (assuming there’s home equity to tap)?

Cities desperate to retain pro franchises are on the hook for hundreds of millions of dollars spent building $1+ billion stadiums. Many claim that they’ll recoup the money from hotels and shopping malls built adjacent to the stadium, but this gargantuan cash flow has yet to actually materialize.

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