Ailing economy concerns MLB Pro teams make adjustments

A sports management conference was held in Toronto this week with executives from both the players’ and owners’ sides on hand. The world economy was in the center of the room.

Billy Hunter, the executive director of the NBA Players’ Association, summed up what all sports execs realize, “sports is not immune” from the world economic downturn.

Major league baseball will be the first to test the new shallower economic waters with free-agent signings now under way. How much will Manny Ramirez get?

All pro sports know the purse-tightening public is watching. It’s not just about the money; it’s also about keeping the goodwill of the fans.

The Red Sox have held ticket prices for 2009 at 2008 numbers. There will be plenty of money to be made a Fenway, but even the Sox were leery about the probable adverse reaction to any increase.

The Nationals and Oakland have lowered their prices. Seattle is holding firm. The Diamondbacks laid off 80 employees citing the current downturn.

The Cubs who have been for sale for the past couple of years are owned by the Tribune Co. They have reportedly revised their plans to hold only a 5 percent interest in the team and are now offering to maintain 50 percent ownership in hopes of keeping would-be buyers interested.

The NBA’s New Jersey Nets are offering free tickets to unemployed fans who bring a resume to the game. The Nets intend to disperse the resumes to corporate sponsors in a job search.

Acquiring corporate sponsorship for naming rights of facilities, for purchasing suites and team advertising of all kinds is a struggle. Some of the same business names formerly so involved now are seen in headlines regarding bailouts and bankruptcies.

With all the talk of “socialism” in the last election, pro sports has to be scared stiff such talk will get around to all the tax breaks that keep pro sports afloat at the current dollar levels.

Public funds for facility construction, tax write-offs for corporate suite and ticket purchases and an anti-trust exemption for MLB have helped bring billions to sports owners.

Remove those public welfare dollars and pro sports will suffer a seismic shift.

Television dollars have measured mightily in the growth of sports. Even that is changing dramatically.

At the Toronto sports conference, Scott Moore, the head of CBC Sports, said, “It’s not sports television anymore. It’s sports media.”

He was referring to the Internet and how it has and will change how people receive games to watch. Already, games are available on the computer, both radio and television broadcasts.

The day is already here when a hand-held communicator allows you to watch a game anywhere, anytime.

The restructuring of what platforms carry sports events is well under way and with that a whole new advertising sales paradigm.

The economic strife is one that sports will weather and still make money. What they want to do is maintain a low profile as to those dollars reaped, keep the goodwill of fans and not provoke governmental changes that remove tax advantages.

bdnsports@bangordailynews.net