Sports and the Economy looks at the effect the current economic conditions are having on sports leagues, teams and fans across the country.
It has long been thought by many that sports are recession proof. Fans for many teams will always come to games and thus these teams will be able to shell out money for talented players (see the Sabathia deal).
However, the NFL announced today that they would be cutting about 150 jobs after the Super Bowl. This coming from the most successful of all the major North America sports leagues.
The NFL. has a total of about 1,100 employees. These employees are located at the NFL’s New York headquarters, at NFL Films in New Jersey and their Los Angeles office that is home to something called the the NFL Network as well as NFL.com.
It’s tough to take that the current economic climate still allows for CC Sabathia to get a $160 million contract while (I’m going to hate myself for using this reference) ‘Joe the Plummer’ is getting laid off over at NFL headquarters.
The payroll for NFL players has ballooned to over $4.5 billion while those 150 jobs that the NFL is cutting will likely not even amount to close to eight figures (less than $10 million); in other words smaller than the signing bonus that Plaxico is going to have to give back to the Giants.
I guess it is a common lesson in allocation of resources. Who would have thunk-it but apparently the NFLPA (players union) is a bit stronger than any union over at the NFL Network or NFL.com.
All we can hope for now is that Adam Schefter is on the NFL’s short list of recession casualties.