Some of the highest levels of business have been lining up for quick payday loans, and many more appear to be joining the ranks. Most professional sports organizations have been announcing job cuts during the current economic downturn, even though the sports industry is usually recession proof. The NFL, NHL, NBA and MLB have all been cutting jobs and freezing hires in order to cut back on expenses, but the Arena Football League seems to have taken the hardest hit. On Monday, the Arena Football League announced it will suspend the 2009 season.
League suspended to restructure business model
Even though professional sports are typically recession-proof, the AFL decided it needs time to figure how to react to the current economic downturn. In the wake of other professional sports leagues making cuts, the AFL’s owners decided a long, stark look at the finances of the AFL is needed in order to determine whether the business model will be viable long term. Arena football has been growing consistently more popular in the U.S. for the last decade, and was beginning to enjoy some success – until the 2008 season. Last year, the league posted attendance of more than 1.5 million people over the season, a league best. However, while attendance has been steadily growing, the league doesn’t seem to be able to get a handle on its finances.
Roster of teams changes frequently
The AFL’s list of teams has been continuously changing since its inception. The 2008 season saw the folding of New Orleans’ team and the beginning of a serious debate about what to do with free agents. While attendance has been on the rise, the league’s debt rose right along with it, and 2008 ended with the league’s future in doubt. Just days after a statement was issued emphatically saying the league was going to stay in operation next year, the team owners – including Jon Bon Jovi, part owner of the Philadelphia Soul – decided on a different course of action during a conference call Sunday, apparently not looking into getting some quick payday loans to float them. The decision was made to suspend all league operations for 2009, pending an agreement with the players’ union. The plan is to restructure the league’s business model and find a way to make Arena Football teams profitable by 2010.
Let’s hope the league can successfully return
Seeing Arena Football teams back on the field would sure beat seeing the downfall of a 20-year-old professional sport. The Arena Football League has attracted droves of fans, and some Arena Football players have been drafted by NFL teams. (Such as Kurt Warner, quarterback for the Arizona Cardinals.) The AFL and the af2 (the lower division of professional arena football) have been drawing more and more fans, especially in areas that are geographically distant from NFL franchise teams. Hopefully, the AFL’s restructure will return it to profitability, as quick payday loans can for a temporarily interrupted budget.
great article
I really hope they can get their finances back in order because I enjoy going to the football games they are so much more fun to watch than the NFL because you know the heart and soul of each player goes into the game.