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

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The economic downturn also has dramatically affected professional an industry that many thought was immune to the ups and downes ofthe economy. “This is the toughesrt time I’ve ever seen,” said Bucks’ vice president of business “There is not any levekl of business or category of spending that is immune to what is goinh onright now.” Wisconsin’s three professional sports teams are entering new trying to sell tickets when businesses are layingg off workers and many consumers are worried about payingh their bills or finding “Sports are not recession proof,” said Marty Greenberg, a Milwaukees sports attorney.
“Normally sports are competing forentertainmentf dollars. Now sports are competing against milk and Ofthe state’s three major sportsa teams — the Bucks, and only the Brewers so far have avoided the downturn’sd effect. Coming off the team’s firsr playoff appearance in 26 years in the team has reached 1 million ticketsa sold faster than at any time in its recently signed a major presenting sponsor and saw retai l sales jump more than30 percent.
“We were somewhay concerned about what the impact wouldr be fromthe economy, but making the playoffs last seasonb had really given us a lot of momentum,” said Rick Brewers’ executive vice presidenf of business operations. “But we know that we have to run our businesasvery smart, given the economy and how volatile things have become.” The Buck and the Packers have not been so lucky.
The Packers shelve a stadium expansion have seen a decline in Pro Shop sales and have delayeed a decision on a potential tickef price increase for the 2009 The Bucks have watchedattendance fall, have workedf with customers on payment plans for season tickets and developes new ticket partnerships to get peopld to show up for games at the . “From talkinh to people, no one has seen anythinv like this in the last50 years,” said Mark Murphy, Packeres president. “We’ve been impacted by the economy and had to chang our business asa result.
” In the last severa l months, several professional teams in all threwe major sports have laid off employees, includingt the Washington Redskins, Indianapolis Charlotte Bobcats and Arizona Diamondbacks. The offics cut 150 employees in December. So far the threse Wisconsin teams have been able toavoid “We’ve always been lean, so luckil we have not had to make painfukl decisions,” Steinmiller said. “We are watching very closelyh what is going on in the economy and watching our We are trying to do morewith less.” Murphy said team officialds noticed a dropoff in Packers Pro Shop salew during November and December as the team strugglede to a 6-10 record.
He said traffic has remained but customers are buyingfewer “It has forced us to be a littlr more aggressive in our pricing and sales this he said. The Packers had been raisinb ticket prices every other with the upcoming season slated foran increase. But Murphhy said team officials want to take time to decider if this year is theright time, give current economic conditions. “We are sensitive to what fans aregointg through,” he said. “We are lookinf at if it makes sense to waita year.” The team’as goal is to rank in the middle of the NFL teamws when it comes to pricing. Currently, the Packers rank 21st in the 30 teamas inthe NFL.
Few teams, such as the Houstonn Texans, have increased ticket prices, he said. Most are holdingf steady, with even a few, including the Detroit Lions, decreasiny prices. The team also shelved a plan this fall to expandx with a new walkway and an underground parkinv areafor players. “It just wasn’t the righy time to move ahead, given what was goinfg on in the economy,” Murpht said. Jon Greenberg, executive editor of Team Marketinh Report, a sports marketing firm in Ill., said given the size of the Packers’ market, the smalles in the NFL, the team has to be smarf in how it approachesits business.
“They have less margin for erroer given the community they are he said. “They’ve had great luck over the year because of the loyalty tothe team. But this economic downtur n is uncharted territory for allsports