Minnesota Pro Franchises Brace For Hard Hit From Economy
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T'Wolves Owner Glen Taylor Has Seen 27%
Drop In His Net Worth In Last Six Months |
The "ripple effects from the severe recession are hitting the sports industry hard, and Minnesota's franchises are worried that the worst is yet to come," according to Rachel Blount of the Minneapolis STAR TRIBUNE. While none of Minnesota's four sports franchises said that "it is in financial trouble, and none currently plans to lay off staff or make major cutbacks in operations," all four said that they are "having to work much harder to maintain revenues." Vikings VP/Sales & Marketing Steve LaCroix said that his staff is "conducting intensive fan research, making personal contact with season-ticket holders and adapting sponsorship deals to their clients' changing needs." The Twins have "found that their well-timed stadium deal is providing some buffer against the financial storm." With the team set to move into Target Field for the '10 season, Twins President Dave St. Peter "projects 90[%] of 2008 season ticket holders will renew for 2009, higher than the usual rate of 85[%], and says the team is on pace to break the franchise record of 10,300 season tickets sold." But Levinson noted the team is "not entirely insulated from the economic fallout." St. Peter: "I thank my lucky stars every day that the ballpark is under construction." Meanwhile, the T'Wolves have "instituted a 'soft' hiring freeze, filling only vacant positions considered critical." T'Wolves President Chris Wright said that the team is "likely to fall 'slightly short' of revenue projections this season, but the expense adjustments will keep the team stable." The Wild "froze prices for this year's playoffs, as well as for season tickets in 2009-10." Wild merchandise sales have "fallen slightly, as has spending on food and drink among corporate clients" (Minneapolis STAR TRIBUNE, 3/15).
PREPARING FOR IMPACT: SI.com's Steve Aschburner noted T'Wolves Owner Glen Taylor in "just six months" has "gotten poorer along with the rest of us." Forbes' Web site estimated Taylor's net worth at $2.4B, a 27% drop from an estimate of $3.3B last fall. Taylor earlier this month said he is "very concerned for pro sports" in terms of the economy's impact. Taylor: "I could talk about banks or health care or the media business. I don't think pro sports is protected in any sense" (SI.com, 3/13).
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