Economic Effects of the NFL Lockout

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Economic Effects of the NFL Lockout

July 20, 2011 by jessep7 · 1 Comment · Uncategorized

            Imagine it was your job to divide pieces of a nine billion dollar pie. It doesn’t sound like that bad of a problem to have, but this is the problem that the National Football League faces. The dispute over how to divide the nine billion dollars of revenue among the owners and players, has led to the NFL lockout. No football will be played until the owners and players can come to a new agreement. This may seem like a problem that affects only the owners and players, but in fact, many more people will feel the effects of an NFL lockout mainly through gambling, stadium employees, and businesses.

            Gambling is going to be affected greatly if the NFL season does not happen. Without the games to bet on, Las Vegas sports books are in for an $850 million dollar loss. This is a minor loss when you count all types of betting. When you bring into account online betting, betting in other countries, and illegal sports books, it could be as much as $500 billion bet wagered on pro football.

An easily over-looked victim of this story is the stadium employees. While the focus is on the players not doing their jobs, the stadium employees find themselves unemployed. The NFL stadiums fund thousands of jobs around the stadiums. With no season, there is no need for these employees. This adds to an already inflated unemployment rate. It is estimated that a lockout will cause the loss 115,000 jobs in local economies (Simmons).

            Both local and big businesses will feel the impact from lack of an NFL season. Many businesses have advertising set in place with the NFL for throughout the season; a season that may not be played. Businesses now have to deal with millions of dollars of promotions and advertisements that have been in place a year in advance for this questionable season (Neff & Schultz). Also, local businesses are bound to suffer. Hotels, sports bars, and other food industries are all going to be hit by the lockout. Many businesses rely on the huge draw that comes with the excitement of football games. The Players’ Association estimated that local cities will lose $20 million for each unplayed game and $160 million if the entire season is missed (Alvaro).

            Yes, an NFL lockout will affect the players and the owners the most. But the ripples caused by this lockout will extend to many more than just the owners and players. Hopefully, the owners and players will soon come to understand this, and work together to end the lockout before too much damage is done.

 

 

 

 

 

 

 

 

 

 

 

 

Bibliography

NFLLockout.com. The Economic Effect of the Lockout. WordPress. Web. July 6. 2011.

Neff, Jeff, and E.J. Schultz. “NFL Lockout Threatens Pepsi, Mars, and P&G’s ‘moment of truth.’”  Advertising Age (30 May 2011). Academic Search Premier. Web. 6 July. 2011.

Alvaro, Joe. NFL Lockout Could Hurt Local Economies. Web. 11 July. 2011.

Simmons, Emily. Billionaires vs. Millionaires. Bliss PR, Inc. Web. 13 July. 2011.

One Comment so far ↓

  • emileeeeee

    that’s deep…
    ha! good job. it was very informational and really got my attention. you stressed the importance and seriousness of the situation.

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