Professional Sports Team Essay Example for Free

Professional Sports Team Essay The existing financial crisis has resulted to the economic imbalance. It has threatened and influenced numerous industries – not only banking institutions but also the sports industry as well. Understanding how the economic crisis might have affected the sports industry is quite unfathomable, as on the exterior, there seems to be no associations between the economy and the sports industry. However, the situation sports team are in at the moment reveals how the financial crisis has also become a let down for the sports industry. Apparently, the demand for sports as a means of entertainment has dwindled as individuals needed to allocate their resources judiciously and responsibly. The economic crisis has caused layoffs and unemployment, and the inability of organizations to increase or maintain the salary of their employees. Due to these situations, individuals have realized the importance of spending money wisely, according to need and priority. The lack of resources that individuals are now experiencing led them to neglect entertainment and other superficialities, as opposed to the need to provide for basic needs and requirements. As the chief executive of the NBA New Jersey Nets, Brett Yormack, has said the competition within the sports industry has gravitated to include other goods and services that are external to what or who sports groups or teams are usually competing with. The goods and services being provided by the sports industry is now competing with other industries that provide the most urgent needs of man. Sports groups and teams have realized that they cannot gain profit from contemporary means, such as television tie-ups for subscription, but only on conventional approaches such as ticket trading. However, the main problem is that although the sports industry is keen on selling tickets for profit, the inquiry of success still leans towards the capacity of individuals to pay for tickets. The sports industry addressed this issue by implementing a scheme that is much more convenient for people – the buy-now pay-later scheme – and therefore, enticing and motivating for individuals to catch the bait. Another economic crisis impact is the restructuring of the sports industry. The diminishing profit of the industry has forced it to cut down on expenses in order to survive the economic turmoil. Some institutions have decided to layoff their employees in order to cut back on expenses being provided for its human capital. The issues aforementioned are in discussion of the implications of the economic crisis on the local sports industry. However, the more serious issue has something to do with the impact of the financial slump on the sports industry on the national level. Sports groups, teams, and establishments are at risk for being stripped of funding, as the national government, like the people, is considering the allocation of resources judiciously such that the most important concerns will be provided for against the lighter requirements. For instance, funding for the maintenance of football fields will be in the least priority, as other issues such as health care and public safety weighs heavier in terms of benefits and contributions to society. The sports industry is starting to fall apart altogether since the impact of the financial crisis has started to take its toll on the success of the institution. Perhaps it will be difficult to expect changes in the future concerning improvements or developments in the sports industry, not unless the economic crisis is resolved. Surely, the state of the economy is a strong force that relatively influences other institutions such as the sports industry.