The Impact of the Global Financial Crisis on Sport in North America

Abstract

Beginning in early 2007 the global economy entered into a tumultuous period of contraction in real economic activity and disruption in financial markets. This paper explores the effect of the recession and financial crisis that began in mid 2007 on professional sports leagues in North America. While attendance and franchise values declined slightly, and a few teams experienced financial problems, the nature of the sport product and institutional factors associated with the sports industry have, so far, insulted professional sport from significant negative impacts. Structural change in lending may have an impact on new facility construction in the long run. The increasing reliance on revenues from businesses in the form of premium seats, luxury suites, and sponsorship may lead to future problems if the downturn continues for a prolonged period.