Post by comique on Aug 22, 2011 16:02:48 GMT -6
www.bizjournals.com/bizjournals/on-numbers/scott-thomas/2011/08/denver-is-most-overextended-market.html
Denver is most overextended market for professional sports
The Business Journals - by G. Scott Thomas
Date: Monday, August 15, 2011, 12:34am EDT - Last Modified: Monday, August 22, 2011, 8:28am EDT
G. Scott Thomas
Denver heads a list of 20 overextended markets, all of which have insufficient income bases to support their existing major-league teams. Complete rankings can be found in the database below.
On Numbers analyzed 85 metropolitan areas in the United States and Canada to determine if they have the financial ability to support professional teams in baseball, football, basketball, hockey and soccer. Click here for the complete methodology.
The Denver area would need total personal income (TPI) of $209.3 billion to provide an adequate base for its five existing teams, according to the study. (TPI is the sum of all money earned by all residents in a given year.) But Denver’s actual TPI is $121.9 billion, yielding an income deficit of $87.4 billion.
This shortfall doesn’t necessarily mean that any of Denver’s teams will move or fold. But it’s a reliable sign that those teams can expect continued volatility in attendance and revenues.
Nineteen other markets are overextended, based on estimates by On Numbers. Among them are five areas with TPI deficits larger than $50 billion: Cleveland, Pittsburgh, Tampa-St. Petersburg, Kansas City and Milwaukee.
The other 65 metros included in the study either have sufficient income to support their existing franchises or don’t have any major-league teams at all.
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OVEREXTENDED MARKETS FOR PROFESSIONAL SPORTS
Rank Metropolitan area Pro teams Deficit in available personal income (billions of dollars)
1 Denver 5 ($87.351)
2 Cleveland 3 ($71.445)
3 Pittsburgh 3 ($56.676)
4 Tampa-St. Petersburg 3 ($54.119)
5 Kansas City 3 ($52.292)
6 Milwaukee 2 ($51.806)
7 St. Louis 3 ($42.294)
8 Phoenix 4 ($41.069)
9 Minneapolis-St. Paul 4 ($39.400)
10 Cincinnati 2 ($37.524)
11 Buffalo 2 ($30.874)
12 Green Bay 1 ($25.168)
13 Detroit 4 ($23.261)
14 New Orleans 2 ($18.406)
15 San Francisco-Oakland 5 ($12.465)
16 Nashville 2 ($10.537)
17 Winnipeg 1 ($8.824)
18 Salt Lake City 2 ($5.943)
19 Charlotte 2 ($1.666)
20 Indianapolis 2 ($1.662
Denver is most overextended market for professional sports
The Business Journals - by G. Scott Thomas
Date: Monday, August 15, 2011, 12:34am EDT - Last Modified: Monday, August 22, 2011, 8:28am EDT
G. Scott Thomas
Denver heads a list of 20 overextended markets, all of which have insufficient income bases to support their existing major-league teams. Complete rankings can be found in the database below.
On Numbers analyzed 85 metropolitan areas in the United States and Canada to determine if they have the financial ability to support professional teams in baseball, football, basketball, hockey and soccer. Click here for the complete methodology.
The Denver area would need total personal income (TPI) of $209.3 billion to provide an adequate base for its five existing teams, according to the study. (TPI is the sum of all money earned by all residents in a given year.) But Denver’s actual TPI is $121.9 billion, yielding an income deficit of $87.4 billion.
This shortfall doesn’t necessarily mean that any of Denver’s teams will move or fold. But it’s a reliable sign that those teams can expect continued volatility in attendance and revenues.
Nineteen other markets are overextended, based on estimates by On Numbers. Among them are five areas with TPI deficits larger than $50 billion: Cleveland, Pittsburgh, Tampa-St. Petersburg, Kansas City and Milwaukee.
The other 65 metros included in the study either have sufficient income to support their existing franchises or don’t have any major-league teams at all.
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OVEREXTENDED MARKETS FOR PROFESSIONAL SPORTS
Rank Metropolitan area Pro teams Deficit in available personal income (billions of dollars)
1 Denver 5 ($87.351)
2 Cleveland 3 ($71.445)
3 Pittsburgh 3 ($56.676)
4 Tampa-St. Petersburg 3 ($54.119)
5 Kansas City 3 ($52.292)
6 Milwaukee 2 ($51.806)
7 St. Louis 3 ($42.294)
8 Phoenix 4 ($41.069)
9 Minneapolis-St. Paul 4 ($39.400)
10 Cincinnati 2 ($37.524)
11 Buffalo 2 ($30.874)
12 Green Bay 1 ($25.168)
13 Detroit 4 ($23.261)
14 New Orleans 2 ($18.406)
15 San Francisco-Oakland 5 ($12.465)
16 Nashville 2 ($10.537)
17 Winnipeg 1 ($8.824)
18 Salt Lake City 2 ($5.943)
19 Charlotte 2 ($1.666)
20 Indianapolis 2 ($1.662
