On the topic of the recession the New York Times has an interesting piece from an economist on this very issue with sports. The question from a reader: "Pro sports have a variety of revenue streams, of course, including ticket sales, concessions, licensing, and ad revenue both from the broadcasting of games and via corporate sponsorship. Given the current economic hard times, how much pullback will there be in advertising and sponsorship as well as other revenues, and how broadly (and how long) will that affect sports teams?" Answer: "Generally, the sports industry has been insulated from mild recessions. This is due to the fact that, depending on the sport, there are long-term contracts that guarantee revenues (e.g., four- or five-year television deals), and fans tend to give up other consumption before they cut back their consumption of sports. The present downturn is, however, both much more severe and likely to last considerably longer than the typical post-WWII recession. Moreover, the revenue-generating model in pro sports has been gentrified over the last 20 years, becoming more dependent on the sale of premium seating, corporate sponsorships, and catering - all expenditures likely to be more sensitive to economic conditions. Baseball was the only thriving team sport during the 1930's. Its attendance fell 40 percent between 1930 and 1933. No one should assume that professional sports today will not be significantly impacted by the present crisis. Some sports, like NASCAR, will be affected more acutely. NASCAR racing teams receive over 70 percent of their revenue from sponsorships and the lion's share of this is from the automobile industry. There will be a major impact here. Other sports - like the N.F.L., which receives over half of its revenue from national television deals that last through 2011-13 - will have a softer landing; but even in the N.F.L., certain teams will be heavily impacted. The NY Giants, for instance, are building a $1.6 billion stadium with the Jets. Much of the financing for this facility has come from auction-rate bonds, a market which collapsed and, consequently, interest costs exploded. The Giants lost their protection from this interest rate explosion when Lehman Brothers went bankrupt. Some estimates have put the Giants cost at near $100 million from the Lehman collapse. A team in the W.N.B.A. closed its doors, tournaments have been eliminated from the L.P.G.A. tour, and the Arena Football League has suspended its next season. N.B.A. teams have used deep discounts on tickets to maintain attendance. The offseason players' market in M.L.B has been somnambulant. The question of how deep these cuts will go and how long they will last is an imponderable. One might as well ask Ben Bernanke or Hank Paulson these questions about the U.S. economy. The answers depend on macropolicy in the U.S. and the rest of the world, as well as currently unknown behavior in financial markets. What we do know is that the sports industry will reflect, perhaps with some moderation, the vicissitudes of the overall economy."