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Old 09-15-2008   #1
Kaiser Toro
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Default Goodell memo says NFL under revenue pressure

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While declining to specify which NFL revenues are “under pressure” or what steps the league is taking to reduce costs, league spokesman Brian McCarthy said, “No business is immune to current economic conditions, including the NFL. Revenues are under pressure because we have partners and sponsors that are responding to a weak economy and higher costs. Like our partners, we are proactively and pre-emptively looking carefully at our expenses.”

The league’s largest businesses, like television revenue, are contractually guaranteed. Sources identified the revenue shortfall as being principally in the media sales and sponsorship areas.

NFL revenue is under pressure as the weak economy pinches key sponsor categories.

Consultant Marc Ganis, who has advised several NFL teams, also identified the league’s licensing business as “feeling pressure” during a period of overall dismal retail results.

He added that Internet and mobile business had not developed as quickly as hoped. “Not just for the NFL, but for all leagues, but I have no doubt they will get there eventually,” he said.

Noting the dismal state of the auto industry, particularly the trucks and SUVs that have been heavy NFL advertisers, he cautioned: “You can’t overstate the impact the auto industry’s problems have with the NFL and every other sport.”
http://buffalo.bizjournals.com/buffalo/stories/2008/09/15/story9.html?f=et183&b=1221451200^1698205&ana=e_ver t
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