When fans’ teams succeed, fans experience the victory vicariously, a phenomenon that makes them feel like they’ve won as well.
Since sports are a positive force in people’s lives that is built on ideas of dedication, cooperation, hard work, and sportsmanship, passionate fans sometimes forget that at the heart of professional sport lies a unique business model.
Just like other live events, this requires securing talent, generating advertising contracts, negotiating and obtaining stadium leases, creating merchandising plans, and a number of additional, highly detailed tasks.
For this reason, a professional sports team can employ hundreds of people beyond the athletes and their coaches, whose salaries typically make up only one-third to one-half of the total cost it takes to run a team.
“When you’re planning [the budget] for the following year, you don’t know how many fans will make it through the turnstiles, or how many corporate sponsors will step up, or how many suite-holders will buy suites.
It’s a bit of an art to balance those challenges and to do it on a projecting basis.” This is why Moorad often ran his teams on the idea that it is “not impossible to run a business in baseball on a break-even basis,” which he admits is bizarre when compared to the business models of other industries.Request a new retail information sheet be sent to you to determine in part your initial investment costs. Visit empty retail spaces and contact the real estate broker or leasing management company to inquire about lease terms and amount of monthly rent.In general, commercial space rents as "NNN" or "Triple Net," meaning the renter will pay by the square foot and pay a portion of the property taxes and building maintenance fees. Have a professional business plan writer or accountant write a business plan based on your initial cost pricing and then go to a bank or visit the Small Business Association's website to find a lender in your area to get a pre-approval for a small business loan.This is because sport franchises build ongoing relationships with their fans that cater to what they want and need most, thereby making the fans feel treasured, yearning to come back again and again.According to Peter Guber, UCLA Anderson distinguished visiting professor, part-owner of the LA Dodgers, and owner of the Golden State Warriors basketball team, “Fans think they own their team.The ownership group has the responsibility for the long-term viability of the franchise.It has to make bottom-line decisions that are best for them.The latter option will take a little more money to start up, but depending on the entrepreneur's goals, it may prove to be more rewarding. A retail sporting goods store owner may choose to offer equipment for the most popular sports, such as baseball, football, hockey, tennis, basketball and golf, or focus on one or two particular sports.Furthermore, a retail sporting goods store may choose to promote specific teams or group of teams, such as a professional football team and professional baseball team and/or college sports team. Rooting for them gives fans a sense of belonging and identification in a wider community.It can also provide escape from the daily grind and help people cheer up by bolstering their self-esteem and pride.