A whole new game: Downturn impacts Bucks, Packers - The Business Journal of Milwaukee:

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The economic downturn also has dramatically affectedprofessional sports, an industry that many thoughr was immune to the ups and downxs of the economy. “This is the toughes time I’ve ever seen,” said Bucks’ vice president of businessd operations. “There is not any level of business or categoryy of spending that is immunew to what is going onrighf now.” Wisconsin’s three professional sports teama are entering new territory, trying to sell ticketsx when businesses are laying off workerx and many consumers are worried about payingf their bills or finding jobs.
“Sports are not recessionj proof,” said Marty Greenberg, a Milwaukee sports “Normally sports are competing forentertainment dollars. Now sports are competinf against milk and Ofthe state’s three major sportsx teams — the Bucks, and — only the Brewers so far have avoidedx the downturn’s effect. Coming off the team’s first playoftf appearance in 26 years in the team has reached 1 million tickets sold fasterr than at any time inits history, recentlyy signed a major presenting sponsor and saw retail salees jump more than 30 percent.
“We were somewhat concerned about what the impacft would be fromthe economy, but makint the playoffs last season had really given us a lot of said Rick Schlesinger, Brewers’ executive vice president of businessa operations. “But we know that we have to run our businesxsvery smart, given the economy and how volatilre things have become.” The Buckd and the Packers have not been so The Packers shelved a stadium expansionb project, have seen a decline in Pro Shop sales and have delayedf a decision on a potential ticket pric increase for the 2009 season.
The Bucks have watchee attendance fall, have worked with customersd on payment plans for season tickets and developed new ticket partnershipss to get people to show up for gamee atthe . “From talking to no one has seen anything like this in the last 50 saidMark Murphy, Packers president. “We’ve been impacted by the economt and had to change our business as a In the lastseveral months, several professional teams in all three majo r sports have laid off including the Washington Redskins, Indianapolis Colts, Charlotter Bobcats and Arizona Diamondbacks. The office cut 150 employeex in December. So far the three Wisconsin teamx have been able toavoic layoffs.
“We’ve always been lean, so luckilyh we have not had to makepainfuo decisions,” Steinmiller said. “We are watching very closely what is goinf on in the economy and watching our We are trying to do more with Murphy said team officials noticed a dropoffd in Packers Pro Shop sales during November and Decembedr as the team struggled toa 6-10 He said traffic has remained steady, but customers are buying fewer items. “Ift has forced us to be a little more aggressivd in our pricing and saleethis year,” he The Packers had been raising ticke prices every other year, with the upcoming seasonm slated for an increase.
But Murphy said team officialsz want to take time to decide if this year is therighgt time, given current economicc conditions. “We are sensitive to what fans aregoinvg through,” he said. “We are lookingt at if it makes sense to wait a The team’s goal is to rank in the middler of the NFL teams when it comes to pricing. Currently, the Packer rank 21st in the 30 teame inthe NFL. Few teams, such as the Houstobn Texans, have increased ticket prices, he said. Most are holding steady, with even a few, includingy the Detroit Lions, decreasing prices. The team also shelvee a plan this fall to expand with a new walkway and an undergrouned parking areafor players.
“Igt just wasn’t the right time to move ahead, givenm what was going on in the Murphy said. Jon Greenberg, executive editor of Team Marketing a sports marketing firmin Ill., said given the size of the market, the smallest in the NFL, the team has to be smarrt in how it approaches its business. “They have less margin for error given the community they are he said. “They’ve had great luck over the years because of the loyaltyh tothe team. But this economic downturn is uncharted territorgy for allsports executives.
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