...Marc Ganis, president of Sportscorp Ltd., a Chicago-based sports consulting firm that works extensively with the NFL, says pro football is unlikely to feel the downturn as badly as baseball because it has fewer tickets to sell and still has a guaranteed revenue stream in its national television contracts, which dwarf those of other sports.
But he noted that the league also has fixed costs -- almost 60 percent of its total revenue will be paid to players this year, with an increase next season. Labor costs are one reason the NFL opted out of the labor contract, which will now expire after the 2010 season instead of 2012, as when first negotiated.
"There is uncertainty on ticket sale, revenue pressures on sponsors and a problem with the auto industry, which is their biggest advertiser," Ganis said. "Yet you still have your biggest fixed cost in the players. So there is a real problem there."
Story here (via Greg Mankiw).
But there's still cash to party on, Garth.
Aiello said the NFL still plans to throw parties at the Super Bowl, elaborate events for which the game has long been known. However, local organizers say the companies that regularly host their own parties are watching expenses, scaling back plans and inviting fewer guests.
I'd expect that we won't see much of a dent in attendance if this keeps up. NFL teams and teams in other leagues will probably end up dropping their ticket prices to keep the fans coming. The biggest effect, probably, will be in future sponsorships if this goes on far into the future.