Yeah Sports Has Been Hit Hard, So Let's Fight Back!

For those of us who work in sports, or at least follow the world of sports business, we know how much the sports industry has been hurt by the United States’ recent financial collapse – one might even say the sports industry has been paralyzed by it.

Of course sports is certainly not the only industry severely touched by the collapse. We all know most industries have been financially pounded to various degrees.

I think one industry that’s been wrecked and is similar to the business of sports is the travel industry. So I find it encouraging that the travel industry is not sitting back, feeling sorry for themselves and saying “Oh well, maybe I should find another line of work” (as many sports-business industry insiders have told me to do). The travel industry is fighting back!

There’s a story published in today’s NY Times business section (http://www.nytimes.com/2009/03/31/business/31response.html?_r=1&scp=1&sq=Susan%20Stellin&st=cse) about the travel industry and how restrictions of bail-out money to banks and other financial institutions are killing the once flourishing business. The financial industry has traditionally spent billions every year to send executives to lavish (and not so lavish) resorts around the country and world for meetings and reward trips. So with the financial industry freezing it’s spending on these unnecessary luxuries, the travel industry has suffered immensely.

The U.S. Travel Association is lobbying President Obama to not only relax some of the bail-out money restrictions but to better define and identify what is considered lavish for these execs. Sending executives to resorts and cushy vacation sites may or may not be an important part of the financial business, the TIA says. They ask to explore what, exactly, these business trips are for and whether or not they benefit their businesses.

I’m sure most financial executives would say these trips are important while regular working-class folks with serious struggles of their own would most likely say it certainly is not (as I would). But I do admire the TIA for recognizing a way to snatch back some or most of its losses and going after them.

The sports connection here is - the collapse of our financial industry is also devastating the world of sports business. Many stadium and arena luxury suites and premium seats remain empty and major sponsorship and marketing dollars, that are earmarked for sports-related events and naming rights, have been substantially cut.

I applaud the TIA and its efforts to fight for its business. Although I don’t necessarily propose that a sports industry group lobby the President and demand that financial industry big shots continue to spend on sports they way they have in the past. But I do draw some similarities between the sports industry and the travel industry. They're fighting for its existence, who’s fighting for ours?

March 25, 2009

Although my Web Site is not live yet, I'm excited to start blogging about sports business and PR and begin a weekly journal of important news stories and, of course, my thoughts regarding this subject.