Thursday, April 14, 2011
Critique on "NFL Lock-Out"
I agree with many of the issues stated in the "NFL Lock-out" blog, but I believe there may be other issues to consider. As the blog stated, the owners would not have to pay the salaries or benefits of their players; however, I believe everyone involved (players, owners, fans, businesses,etc) will be negatively affected by a lock-out. The NFL is a billion dollar industry bringing in revenue to many different corporations and individuals. If a lock-out occurs and there is no NFL season, this industry will take a major hit. Fans will not be buying tickets to games so stadiums will be financially affected. Stadiums must pay taxes to the areas where they are located, so less revenue will mean less tax money coming into a locality. Stadiums also employ many workers in different capacities, who will now face the prospect of unemployment. The blog states that stadiums could be used for other purposes, but that is not a guaranteed option. It may be impossible to book events that would generate as much money as a NFL season full of games. NFL fans buy millions of dollars of merchandise every year. This marketing industry would also be affected, although probably not as drastically as other areas. Fans who would normally purchase souvenirs at a game will no longer have the opportunity to do so. The entertainment industry would also take a major hit. The NFL season is one of the most watched sporting events on television. Advertisers rely on reaching potential customers during televised games, especially during the Super Bowl. Television networks who have contracts to televise NFL games will have to find replacement programming which will affect their ratings and their marketshare of viewers. Players will be harmed by a lock-out as well. The sport's megastars will probably come through a lock-out with minimal financial damage thanks to large endorsement deals. However, the regular, everyday player will have to supplement his income in some other way. There may also be evidence of the substitution effect which could be beneficial to other sport's industries. The NCAA may be the biggest winner, as true football fans will watch more college football. Football fans will substitute NCAA football for NFL football. This will lead to increased revenues for industries associated with college football teams. All of these factors will have an impact on the owners of NFL teams. Owner's profits will be affected as revenue is lost in all areas of the industry. The NFL lock-out will have devastating effects on all parties involved.
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