U.S. sports fans could see deeper cuts in ticket prices for their favorite teams, officials from the major sports leagues said on Wednesday, as the recession threatens attendance at costly new stadiums.
Already, a number of top sports teams have begun to cut prices, with the New York Yankees last week announcing the organization would lower the cost of buying premium seats to help fill the shiny new $1.5 billion ballpark.
The average price of a home-game ticket for a Yankees fan this season, for example, will run about $72.97, up more than 75 percent from last year, according to research firm Team Marketing Report.
Across sports, even more cuts could be coming as teams reverse the increases they put in place to help pay for expensive new arenas and stadiums.
"There are going to be adjustments based on the economy. We've seen that in our teams," David Stern, commissioner of the National Basketball Association, said at a panel discussion hosted by The Wall Street Journal. "They'll do fine, but they'll do less. As we come through the economy, I think there will be some re-pricing mechanism built in."
Joining Stern on the panel were the commissioners of the other three major U.S. sports leagues -- the National Football League, Major League Baseball and the National Hockey League -- all of which have seen finances pinched by the recession.
Stern's NBA cut jobs earlier this year, something the NFL did as well, and baseball froze the league budget as it faces an attendance decline of as much as 10 percent this year.
Cutbacks by companies on pricey tickets and sponsorships have also hurt other leagues, with race teams in NASCAR cutting jobs, Arena Football canceling its season and teams in pro lacrosse and women's basketball folding.
In hockey, the Phoenix Coyotes, beset by annual losses and debt, unexpectedly filed for bankruptcy protection on Tuesday. Jim Balsillie, the co-chief executive of Canadian smartphone maker Research in Motion, has offered to buy the team on the condition that it is moved to Southern Ontario.
NHL Commissioner Gary Bettman responded on Wednesday by saying he thought the franchise could survive in Arizona. "We believe it can, with new ownership and with the accommodations that the city of Glendale is prepared to make, can have success," he said during the panel discussion.
"We generally avoid relocating a franchise unless you absolutely have to," he added.
Baseball Commissioner Bud Selig, meanwhile, dismissed any speculation that building costly new stadiums had been a mistake for teams now facing a deep recession.
He also denied that any stadiums risked foreclosure.
"I know of no places facing foreclosure," he said. In the face of the downturn "clubs are working harder than I've ever seen them. We're continuing to make a very, very good adjustment."
National Football League Commission Roger Goodell also defended the rush to build new stadiums when the economy was riding high. "Most of these building have been very positive for their cities," he said.
(Source: Reuters)
