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Wnba Analysis

1696 words - 7 pages

WNBA and the Economy
The topic of sports is an ongoing form of popular entertainment that generates millions of dollars per year. Although the revenue is enormous, the slow demise of the Women’s National Basketball Association is apparent within the economy. Many other factors, including the recession, have had an enormous effect on the deterioration of this league. Some of these factors include the demand for women’s basketball which has led to a decrease in fan base, salaries, and funding for other teams, ultimately contributing to the downfall of this empire.
In dissecting this problem, it becomes evident that the demand for this particular sport is an issue. How many people have a ...view middle of the document...

Weidie further states, “not to say women’s basketball is not athletically astounding in its own way, just very small in comparison to a pool of the world’s greatest athletes.” With the differences in athleticism and levels of entertainment, the public’s preferred choice has helped contribute to the economic blow within this organization. Here is a quick representation of the recent 2009 national attendance rate and media coverage.

Noticing the drastic difference in attendance in correlation to popularity has lead to the continuation of WNBA teams folding. Research has shown that over the league’s existence since 1997, six teams have been accounted for that have gone under. These teams include the Houston Comets (1997-2008), the Portland Fire (2000-02), Miami Sol (2000-02), Cleveland Rockers (1997-2003), Charlotte Sting (1997-06), and Sacramento Monarchs (1997-09). Among all the WNBA teams that have diminished, the Comets can be noted for being one of the most successful. The Houston Comets were a franchise that won the first four WNBA championships in history. When compared to the NBA, the Houston Comets would be equivalent to the status of the Los Angeles Lakers. The falling out of the economy could be partially to blame, but the nucleus of the demise of this team would be from the lack of popularity in the Houston metropolitan area. The WNBA stated in an article by Ross, “the currently leagued-owned team could not find a person in this economy willing to throw up big bucks to become an owner, thus the team had to break up.” As a result of this team falling, thirty-seven jobs were lost due to the fact of not finding staff placement for this team. In a business perspective, it takes money to make money, and no one was willing to take the risk of investing in this non-major sports team.
Another issue contributing to the problems within the WNBA could the marketing of this association. With the struggling economy, marketing costs have been cut dramatically for the league, but as improvements have been made, the fan base is slowly on the incline. NBA commissioner David Stern positively predicted with the 2009 season the WNBA would “finally break even with forecasting costs.” With this accurate prediction, the league has benefited from many marketing deals and endorsements, such as Microsoft, which put the name of its company’s search engine on the jerseys of the Seattle Storm. The league has jumped into other recent marketing deals with companies such as T-Mobile and Farmers Insurance that together have generated a few million for the teams and are continuing to grow. The problem with the WNBA is that it has been costing more money to produce the entertainment than the revenue being brought in; therefore, it is falling short of making a sufficient profit. Only recently in the 2010 year has the media coverage begun to increase. With the new marketing ideas being put into play, the decline in media coverage will hopefully cease, and...

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