FREE ESSAY ON ARIZONA BASEBALL IS LOSING MORE THAN FANS

ARIZONA BASEBALL IS LOSING MORE THAN FANS

Arizona Baseball Is Losing More Than Fans
What was once one of the most promising expansion franchises in Major League Baseball
(MLB) is now on the verge of losing more money than any other team in baseball this year.
There are many factors that are making this happen and some can be linked to
macroeconomics. The Diamondback's were 1 of 4 teams added to the league in the past
decade. While a seemingly small number it actually constitutes a flooding of the market.
The team's first year average attendance is down more then 8,000. Yet in the face of
decreasing ticket sales the team has gone on a spending spree signing on free agents and
bloating its payroll to one of the highest in baseball. This year the team also missed
the playoffs and lost out on a projected $10 million in ticket sales and merchandising at
the ballpark. Before the first inning was even played at Bank One Ballpark, the team and
its investors were in the red for 130 million dollars for the cost of the stadium and
franchising fees. The main problem that the Diamondback's are facing is a decrease in
demand for a professional baseball team in Phoenix. It seems that the team is not
operating at its optimum size for creating profits, making the Diamondbacks low in demand
in the Phoenix economy. Due to the decrease in demand, the Diamondbacks will be forced to
lower prices to influence people to watch a second class ball club at a second rate
price. The team is performing so poorly, with lower prices and less fans attracted, the
club's profits will in turn decrease. We see this a lot, because the club is not
operating well enough, it creates less economic activity taking place for the Phoenix
economy. 
Less economic activity in Phoenix leads to a decrease in GDP, which also slows the
economy down. So for the next season, the Diamondbacks will have to pay players less
money if their contracts are going to be renegotiated, cut back other expenses and focus
on making profits. A company cannot operate if it does not make profits, and the
Diamondbacks are earning a lot less than what is expected of them, and could possibly
soon vanish. But if the ball club starts to perform up to par, that will cause an
increase in the demand in the Phoenix economy. First, the club needs to perform well, the
ticket prices to see the Diamondbacks would go up because everyone will want to watch
them, which would lead to an increase in the clubs profits. Plus, the profits the
Diamondbacks make of off the merchandise and the condiments sold at the stadium would
also increase their profits. The club would also increase profits for local restaurants,
hotels, and every other company that contributes their services to the ball club. This
creates an increase in economic activity in the Phoenix economy. The better the club does
during the season, the more chance they have to make the playoffs, that will increase the
demand to see the ball team even more. Also, the better the team does, the more sponsors
the club gets and the more publicity the club and individual players receive. That's also
generates an increase for other company's products such as Nike, Upper Deck (sports
cards) American Airlines, New Era, BallPark, and all other MLB products. Due to the fact
that the ball club earns a percentage on the MLB's merchandise and individual player
sponsors, so the club helps promote these products and services to increase their own
profits. 
The company's that sponsor the club influence more customers to go there because they may
get a discount or a bargain just for using the ball clubs sponsors, also the publicity of
the company makes them more known and draws more customers increasing their profits as
well. The better the Diamondbacks do and the more they draw people that want to see them,
the more the people use their community's services increasing the economic activity
there. And obviously if the club does not do so well then there is less economic
activity. Depending on how well the local ball club performs effects the local economy.