The NFL Blackout Black Eye

Football fans are upset with the NFL after the announcement that, in the worst economy in decades, the league is standing behind their Blackout Rule which states that games will not be televised in local markets if it’s not sold out 72 hours prior the start of the game.  The rule has been league policy since 1973 and,  according to officials, has served the league well as they believe fans are less likely to attend a televised game in turn hurting ticket sales reports Time Magazine.  In addition, networks are hesitant to televise games as ratings may suffer from broadcasting a game with the stadium noticeably empty.  As many as a dozen teams risk blackouts including Arizona, Detroit, Cincinnati, Jacksonville, Minnesota, and San Diego.  Jacksonville is rumored to have to black out all 8 regular season games.

Local government and team ownership are rallying together to try to persuade the league to reconsider .  Richard Clark, President of Jacksonville City Council states, “I would like to think they would really, really look at those communities which are hardest hit and have an honest discussion about it, as opposed to saying this is the way we’ve always done things.”  At present, there have been no discussions to overturn this rule after the NFL announced that blacked out games would be aired 24 hours after the game is completed in the local markets.  In years past corporate sponsors and local companies would aide teams by purchasing the tickets needed to achieve a sell out.  However, businesses have cut back on tickets and even the best-in-class companies who track their sports and event tickets purchases need to expect a positive return on any purchases such as a couple hundred or thousand tickets.

In a challenging economy, general admission ticket prices have increased in 2009.  In addition, the average premium ticket has escalated over 15% this season. Corporate season ticket and suite holders have been scrutinized in the press for entertaining clients and executives amidst economic conditions.  There is a heightened responsibility for large firms with considerable sports and entertainment holdings to more effectively manage these assets, and sports ticket management solutions have become a necessity in today’s market providing transparency and reporting to allow companies to justify initiatives with a positive ROI.

As stated in a recent Harvard Business Review, during a downturn analysts encourage companies to do three things: reduce operating costs, postpone capital expenditures, and focus on gaining or recovering market share.  Spotlight ticket management software helps companies accomplish all three.

Without the previous level of corporate purchasing and faced with a struggling consumer, should the league change their blackout policies?  Should teams lower prices or offer clearance deals to fill the stands?

Tweet This Post