Bear Market Could Bull AFL to Center Stage
Adam Markowitz
Saturday October 11, 2008
Ok, let’s not beat around the bush any… times are hard right now in the United States for just about everyone. The Dow Jones has plummeted well below the psychological benchmark of 10,000 points, gas prices are still over $3.00 a gallon in much of the country, small businesses are going under left and right, and there isn’t a banker in the world that would spot you $10 to go buy lunch let alone $10,000 for a car or $100,000 for a home.
Though some think I have absolutely no life away from ArenaFan, I work as an accountant by day, and I’ve seen basically every type of business possible struggling. Real estate agents can’t sell anything, jewelers aren’t doing any business even at liquidated prices, and dentists who are normally booked to the gills can’t get patients into their chairs. Even businesses that should be thriving in lousy economies, such as carpet cleaners and auto repairmen are barely making ends meet.
So if none of these business can succeed in this market, how can I even ascertain the fact that I think the Arena Football League could be in for a banner year in 2009 if the teams play their cards right?
Chicago Rush General Manager and Team President Mike Polisky said it best. “We’re known around the country as the greatest sports entertainment value around.”
One fact will always remain true in the good ol’ USA. No matter whether the stock market is sitting at 15,000 points or 5,000 points, the demand for sports will still be high. The NFL, MLB, NBA, and to a lesser extent, the NHL will always have their corporate sponsors and massive television deals that will keep it afloat, so we know they’re going to be just fine whether anyone shows up to the games or not.
But how many people out there are season ticket holders for their NFL team that can no longer afford paying $100 per seat per game? And how many of those people have totally dismissed the fact that the AFL even remotely compares to the quality of entertainment they got from their NFL tickets?
Tampa Bay Storm Public Relations Director Jim Robinson agrees. “People are still going to want to do things whether the economy is up or down.” He continued, “For the price of one ticket for an NFL game, you can bring a family [to an AFL game].”
Yeah, I hear you in Utah and some of the other markets that don’t have NFL teams. But you’ve got debates for other major sports teams. Reasonably put yourself in this scenario: Your family of four wants to go to a local sporting event. Let’s just say that all things are equal with parking and concessions, and you don’t plan on buying any souvenirs. Do you really want to spend at least $100 to get your family into the Jazz game on Thursday night? You can go to the Blaze game on Saturday for $36. It doesn’t sound so bad when you look at it that way.
Even though many businesses are finding ways to cut costs to try to offset their economic struggles, Polisky assures that nothing is changing for the Rush any time in the near future. In fact, the exact opposite might be true. “We’re just going to continue to do what we do. If anything, we might invest some more in our advertising for our economic climate.”
It really could be a tremendous idea. In the business world, when you’re trying to generate income, you find creative ways to promote what you’re selling, and run advertising blitzes.
Tampa Bay has done just that with their “Ride out the Storm” promotion. The Shriners Club and the Storm have teamed up to both raise money for the Shriners and promote the AFL. The specially designed “Storm-1” is being toured throughout various locations in Central Florida, with Storm players and cheerleaders making appearances along the way on the tour. At the conclusion of the tour, “Storm-1” will be auctioned off, with the proceeds going to the Shriners.
What can separate the AFL, the af2, and really any other “minor league” sport this season is keeping everything cost-efficient. The worst mistake any team can make is to jack up the prices of tickets and merchandise in an attempt to recuperate some of the losses that are inevitably going to come with the cost of operating increasing.
History tells us that the Dow Jones will rebound and that the US economy will eventually come back stronger than ever before. Middle-class investors that have the intestinal fortitude to put their money into the market now could find themselves in the upper-echelon of society in a hurry if things turn around. We saw it after September 11th, 2001, and will likely see it again… eventually… The trick is getting the timing right.
If they play their cards right, after 22 seasons, the AFL has a chance to set all sorts of attendance records, which will hopefully translate to more viewers and better ratings on television. The time is now for the Arena Football League.
