Business

Seven Pro Sports Teams on the Brink of Collapse

The owners of the Los Angeles Dodgers have recently agreed to sell the team, following a bankruptcy filing in June of this year. The team may sell for more than $1 billion — the highest in baseball history and a premium on the $800 million value Forbes has assigned it in its annual ranking.

Intrigued by this development, researchers at 24/7 Wall St. set out to identify the teams that were likely to follow the Dodgers down a similar path. Teams lose money because they lose fans. Teams lose fans because they lose games. In an attempt to identify the teams that are on the brink of collapse, 24/7 Wall St. examined Forbes‘ estimates of income and value for multiple teams, their win-loss records and attendance numbers over a ten-year period (via ESPN).

According to the results, the single greatest cause of a team’s long-term success was whether or not it wins games. Of course, there are always exceptions to this rule. But a quick glance at profit and attendance shows that, generally, teams that do well enough to make the playoffs manage to have high ticket sales.

Across the four biggest sports in the U.S., several teams have seen a decline in their attendance. While in some cases this is the result of moving to a new stadium with lower capacity, for the most part these teams simply do not win enough games.

According to Forbes, 39 of the 122 professional sports teams lost money last year. Some have lost a few million only a handful of times and probably will perform well in the future. For others, the loss is in the tens of millions and represents yet another season without positive net income.

These are the seven pro teams on the brink of collapse.

Seven Pro Teams on the Brink of Collapse7. Columbus Blue Jackets
 10-year change in attendance: -23.67 percent (biggest decline in NHL)
W-L record 10 years: 285-356-24-73 (the worst in NHL)
Operating income (2010): -$7 million
Year founded: 2000
Value: $153 million (sixth least valuable in NHL)

The Columbus Blue Jackets joined the League in 2000, the same year as the Minnesota Wild. Since they joined, the Jackets have won just 38 percent of their non-playoff games in regulation time, and have not won a single playoff game (despite making the playoffs once in 2008-2009 season). In its first few years, the Columbus franchise managed to record profits, but as one disappointing season after another set in, attendance has begun to decline. This season, even after the team added several expensive players in marquee trades, they are off to another horrible start, with just two wins in 14 games.

Seven Pro Teams on the Brink of Collapse6. Detroit Lions
10-year change in attendance: -25.18 percent (the biggest decline in NFL)
W-L record 10 years: 39-121 (the worst in NFL)
Operating income (2010): -$8 million
Year founded: 1929 (moved to Detroit in 1934)
Value: $844 million (seventh least valuable in NFL)

While Detroit has certainly experienced increasing financial troubles, the team may be in the midst of turning its fortunes around. The Lions are currently 6-2. If they continue to win, they could become a profitable NFL franchise again. However, stepping back from this year for a moment paints a less rosy picture. In the previous 10 seasons, the Lions have won just 39 out of 160 games, easily the worst record in the NFL.

This includes the 2008 season, when the team became the only franchise ever to fail to win a game in the 16-game schedule. The team moved from the Silverdome to Ford Field, hoping to save money, but even in the smaller stadium the team usually averages well below the 65,000 person capacity. While the franchise was profitable for the first half of the decade, the Lions lost money in four of the past five seasons, including the $8 million lost last year.

Seven Pro Teams on the Brink of Collapse5. New York Islanders
10-year change in attendance: -2.40 percent (eighth biggest decline in NHL)
W-L record 10 years: 316-322-30-70 (fourth worst in NHL)
Operating income (2010): -$4 million
Year founded: 1972
Value: $151 million (fifth least valuable in NHL)

The New York Islanders have the fourth-worst record in the NHL over the past 10 seasons, winning just 316 of their 738 games in regulation time. On top of this, the Islanders compete in a regional market with the New York Rangers and the New Jersey Devils. Both teams have had far greater success and are profitable. In 2001, the Islanders netted a profit of $1 million, compared to $6 million by the Devils and $60 million by the Rangers. Since that year, the franchise has failed to make a profit, losing $64 million cumulatively through 2010.

Seven Pro Teams on the Brink of Collapse4. Indiana Pacers
10-year change in attendance: -24.32 percent (second biggest decline in NBA)
W-L record 10 years: 399-421 (15th worst)
Operating income (2010): -$17 million
Year founded: 1967
Value: $269 million (fourth least valuable in NBA)

The Indiana Pacers have not been in the black since 2005. Including 2010’s $17 million net loss, the team has cumulatively lost $52 million in five years. The team made the playoffs last year, ending a four-year drought, but then lost in five games to the Chicago Bulls. Attendance has declined precipitously since 2001, when the team was two years removed from a six-game loss in the championship to the Los Angeles Lakers. In 2001, the team averaged attendance of 17,888 per home game. In 2009, the team cut ticket prices by 30 percent, hoping to attract fans, but so far it has had little success. Last year, the Pacers averaged 13,538 people per home game, easily the worst in the league.

Seven Pro Teams on the Brink of Collapse3. Sacramento Kings
10-year change in attendance: -19.79 percent (third biggest decline in NBA)
W-L record 10 years: 410-410 (12th best)
Operating income (2010): -$10 million
Year founded: 1945 (moved to Sacramento in 1985)
Value: $293 million (seventh least valuable in NBA)

Compared to the other NBA teams on this list, the Sacramento Kings still have a legitimate shot at recovery in the next few years, but their past few seasons have certainly put the team in a tight spot. At the beginning of the decade, the Kings were in the middle of an eight-season streak of making the playoffs, and during the 2001-2002 season were considered one of the best teams in basketball.

The team has not made the playoffs since 2006, however, and increasingly poor performance has been a major drain on ticket sales. Since the 2000-2001 season, attendance has dropped nearly 20 percent. Net income has dropped four years in a row, and the team lost money in 2009 and 2010.

Seven Pro Teams on the Brink of Collapse2. Minnesota Timberwolves
10-year change in attendance: -12.88 percent (sixth biggest decline in NBA)
W-L record 10 years: 339-481 (sixth worst in NBA)
Operating income (2010): -$7 million
Year founded: 1989
Value: $264 million (second least valuable in NBA)

The Minnesota Timberwolves have missed the playoffs seven years in a row now, and with the NBA season in jeopardy, that streak could extend to eight. Looking at the past decade, the team has the sixth worst cumulative record in basketball. In the past few years, the team’s performance has been even worse. The team has won 56 games combined in the past three seasons, a number that five teams have surpassed in past season alone. Minnesota has lost money every year but one since 2004, and it is bound to lose a lot more if the lockout continues.

Seven Pro Teams on the Brink of Collapse1. Phoenix Coyotes
10-year change in attendance: -16.40 percent (third-biggest decline in NHL)
W-L record 10 years: 329-310-38-61 (sixth worst in NHL)
Operating income (2010): -$20 million
Year founded: 1972 (moved to Phoenix in 1996)
Value: $134 million (the least valuable in the NHL)

The Coyotes are one of the newest teams in the NHL, having moved from Winnipeg in 1996. According to Forbes, the Phoenix franchise is the least valuable in the NHL, worth just $134 million as of 2010. In contrast, the New York Rangers are worth more than three times as much. Between 2001 and 2010, the Coyotes lost money every single year, or a grand total of $118 million in losses over a nine-year period.

In 2009, the losses were so high that the team declared bankruptcy. Eventually, the NHL ended up buying the team. Despite the fan draw of coach and hockey legend Wayne Gretzky, as well as making the playoffs two years in a row (after missing them six seasons in a row), attendance remains low.

(Michael B. Sauter/Becket Adams–24/7 Wall St./The Blaze)

Comments (33)

  • LondoMollari
    Posted on November 13, 2011 at 12:21am

    Ah yes, sports fans….some of the dumbest, selfish SOCIALIST people to ever live in this country.

    Morons who constantly think they are so damn “rough and tough” and conservative because they like hockey, football and baseball, only to vote for TAX INCREASES for crony capitalist CEOs and unionized millionares.

    These same dolts also fork over millions to their high schools and unis“for sports” and then are shocked as all hell when their kids come home for turkey dinner in Nov and preach Marxist garbage.

    If you think that taxpayers need to pay for stadiums for these overrated, pampered losers, you‘re a coward who can’t stand on his/her convictions, which isn’t surprising. The Democrats and RINOS count on schmucks like you to do all they do and get all they get.

    Maybe most of these folks are as dumb as the left says they are.

    Pathetic.

    Report Post »  
  • romefalling
    Posted on November 9, 2011 at 10:55pm

    It took 100 yrs for Rome to fall, We are in the midst of this. I say all pro sports need to collapse..It needs a complete reboot to a simple time of a 5 dollar ticket to see a baseball game. No more greed, no more tax financed subsides that they “create jobs”..Oh B.S !!…..

    Its the end of the USA if “WE” as Americans coast to coast don’t turn our T.V’s off and get out there and make our voice heard.

    Enough Greed, Enough Lies, Bring the jobs back to the USA, lets fix our schools, no more mindless welfare or entitlement programs for leeches sucking our system dry…Tax the rich!..and lets use the money to make this country better than it has ever been …lets build high speed trains coast to coast..solar power coast to coast…free medical care and schools for U.S citizens that contribute to our country…deport all illegal immigrants…U.S Army at the border….Lets bring respect back for love of God and Country….No more crime…WE the People can make it happen…..

    Report Post »  
  • Tepeyac
    Posted on November 9, 2011 at 8:35pm

    All I can say to those who pay $50 to watch hockery, football , basketball…SUCKERS!!!

    Report Post »  
  • Eblaze44
    Posted on November 9, 2011 at 5:58pm

    How about a little pay cut for the players and the owners. lower the ticket prices so more people can attend the games. What do they expect when they pay millions to a guy to play a game for a couple of hours and expect people struggling to pay their bills to pay $50 or more to watch and then rip them off further with a hot dog for $5. It’s the players and the owners fault – greedy guts that have played too long to a dwindling audience.

    Report Post » Eblaze44  
  • ilovetheusa1
    Posted on November 9, 2011 at 5:47pm

    it’s about time. I am tired of these sports guys making so much money for catching a baseball or making a basket. big freakin deal. These over paid players have made it so difficult for parents to take their kids to games to enjoy some family time. As a kid, we loved going to the games but it has become ridiculous. I am one that is very happy they are going broke.

    Report Post »  
    • @leftfighter
      Posted on November 9, 2011 at 5:55pm

      They’re only overpaid when you and I can do what they do.

      These guys are the only people in the world who can do what they do.

      Check yourself! You’re using the same logic the Left uses on CEOs. Their salaries are the Free Market at work. If they’re not worth the money they make, the owners won’t pay it.

      Me? I don’t begrudge them making as much money as they want.

      Now, come to a walk-out or lock-out, then I tend to have more of a shut-up-and-deal attitude towards them and ownership.

      Report Post » @leftfighter  
    • kevinj319
      Posted on November 14, 2011 at 10:48pm

      Their ability to catch a ball has ramifications beyond the outcome of a game. Because they are so talented, people are willing to come from all over the state to see them do what they do. This creates work for thousands of people. Think of all the employees at the venue. The vendors, the janitors who clean up, the groundskeepers. Photographers, journalists, television crews, marketing, security. Not to mention nearby gas stations, hotels, taxis, restaurants, jersey manufacturers, memorabilia retailers… the list goes on and on. Sports players make millions, but they cause BILLIONS to flow through the economy. This is why it makes sense that they are paid what they are.

      Report Post »  
  • academica2020
    Posted on November 9, 2011 at 4:29pm

    Corporate America does have a HUGE impact… Sad but true… But so does the management of the leagues and they do not focus on fan support, they focus on Corporate support. When it comes to the NHL, when the Hartford Whalers moved to “Carolina” it was after the folks and companies in the Hartford region stepped up to the plate and came up just short of the goal set to keep the team in Hartford. Fact is, Gary Bettmann had no intention of doing so because Hartford is considered a small insignificant market. Funny, it supported a team for more than twenty years and, before Billy Bean, began farminf future stars off to other teams who prospered. It’s time to let cities that have a strong fan base have a say again!

    Report Post » academica2020  
  • hoppdwear
    Posted on November 9, 2011 at 3:33pm

    I expected to see the Charlestown Chiefs on the list after their disappointing run with Reggy Dunlop retired and the Hansons moved on. Hopefully they can make a come back too.

    Report Post » hoppdwear  
    • Hollywood
      Posted on November 9, 2011 at 4:13pm

      I’d certainly buy seasons tickets. Nothing like good,old fashioned hockey.
      Where are those Broad Street Bullies. Philly ain’t the same.

      Report Post » Hollywood  
  • One Man Progressive Wrecking Crew
    Posted on November 9, 2011 at 3:26pm

    I could live without all seven frankly. I was a big big sports fan and still follow the Bears and Hawks but the ghettoification of pro sports has sent ME elsewhere for entertainment, places where my hard earned money doesn’t end up in the pockets of crack addicts, woman beaters, overpaid whining millionaires who are 80% broke 5 years after retirement despite pocketing tens of millions in a couple short years window.

    Or in other words, keeping it for the most part in my pocket since most of America’s present entertainment choices revolve around the above described ingrates performing or whatever you wanna call rappers and other talentless mainstays of Hollywood like Sheen and LIHO. Human garbage disposals..

    Report Post » One Man Progressive Wrecking Crew  
    • @leftfighter
      Posted on November 9, 2011 at 5:56pm

      A Bears fan can do without the Lions.

      I never saw that coming. ;-)

      Report Post » @leftfighter  
  • its_the_economy_stupid
    Posted on November 9, 2011 at 2:01pm

    MMA seems to be doing just fine. Revival of the Gladiators…sounds profitable.

    I have some lions that are hungry…any Christians out there causing trouble? Maybe some free-market capitalists?

    Report Post »  
  • lodgerat
    Posted on November 9, 2011 at 1:15pm

    I wa going to take the family to a Rams game. I found out I would need to take a second morgage on my house and decided not to go. Besides they are playing like crap

    Report Post » lodgerat  
    • Eblaze44
      Posted on November 9, 2011 at 8:06pm

      Ever go to Disney World, or as we call it here, Mickey Mouseland? Talk about a total rip off.

      Report Post » Eblaze44  
  • Velkro
    Posted on November 9, 2011 at 1:13pm

    I will agree that a team losing games is one reason why ticket sales are lower, but have you considered the high prices of tickets? I used to love going to basketball games regardless of whether the team lost or won, but I cannot go anymore because I cannot afford it.

    Report Post » Velkro  
  • stockpicker
    Posted on November 9, 2011 at 12:59pm

    Is it possible that the sports nightmare is ending?

    Report Post »  
  • academica2020
    Posted on November 9, 2011 at 11:57am

    Looks like the Hartford Whalers faithful may have a glimmer of hope of returning an NHL team to Hartford. God knows the attendance would be better than in the cities mentioned here…

    Report Post » academica2020  
  • concealled9mms
    Posted on November 9, 2011 at 11:29am

    well when you have to pay a so called athlete millions to catch a fricking ball what do you expect ticket prices arent gonna come down with that happening. yes the unions greedy hands are helping destroy sports also. i know i wont spend a 100 plus a ticket to watch any sport

    Report Post »  
  • Pardawg
    Posted on November 9, 2011 at 10:56am

    Not surprised by two of these…. as far as Detroit, the city collapsed and people have no jobs to buy tickets, and up until this year why would you buy a ticket to the Lions? As far as the Pacers, well, they replace solid citizens with a bunch of thugs… I can say this, Indy is my home town. Who wants to spend hard earned cash for thuggery? People vote with their feet and their wallets… if you don’t have what they want, they’ll go somewhere else. Just my thoughts….

    Report Post »  
  • AwakenedGiant
    Posted on November 9, 2011 at 9:04am

    This is not surprising. Corporate America has been a big supporter of sports (corporate box, season tickets, etc) over the years, and that has changed with corporations struggling. Individuals are also struggling, and going to any sporting event is a luxury. Basketball has changed, and I don’t mean evolved, to me it has devolved. They allow thugs, chest beating and watered down defenses. Miami lost because DEFENSE is played in the playoffs and finals. LeBron became frustrated because he didn’t know what to do when defense was played against him. The NBA is a farse, and the NFL is not far behind. Sports no longer teaches character

    Report Post »  
  • Johann
    Posted on November 9, 2011 at 8:16am

    Sports in America is big big business with its million dollar salaries paid to barely educated players who blow it all on drugs and drink. Maybe the collapse of the corrupt sports culture would be a good thing for Americans; however millions of Americans are brainless cretins who can not spend enough of their family income buying the big Sports tickets and paraphernelia. Listening to sports fans describe their absolute love and devotion to their teams is sickening. Get a life; when a team wins a championship it has nothing to do with you being number one. Panis et circenses the policy of a corrupt bankrupt world empire.

    Report Post »  
    • no_more_harkin
      Posted on November 9, 2011 at 9:03am

      There are some good guys out there, but the troublemakers make headlines. :) I feel like you sometimes. I wonder what these armchair quarterbacks would have to talk about if there were no football, and some fans are so hardcore to be living only for “their team”. It’s sad. And the NBA lockout this year… frankly I couldn’t care less if the NBA was disolved completely – to me it is the most unadmirable of the professional sports.

      Report Post »  
    • DrFrost
      Posted on November 9, 2011 at 9:53am

      The NBA is the most unadmirable? Really? What metric are you using to come to that conclusion? Personally I would award hockey that title based on unsportsman like conduct…. but that’s just me. Some of my friends love hockey…

      I think player union’s have gone overboard… but I also think a lot of owners are being unreasonable. The owners like to talk about risk…. but if that’s the only issue they should negotiate contracts with a small base salary (like…. $100k) and the rest of the salary is based on a percentage of the teams NET income. If the team does poorly and fans don’t come…. players don’t get paid…. owners don’t have to pay out big salaries. It gives the owners what they say they want (mitigates their risk) and gives the players the potential to make more money if they do well.

      Report Post »  
  • ObserverOnTheHill
    Posted on November 9, 2011 at 6:51am

    A little less bread and circuses for the masses.

    Report Post »  
    • grudgywoof
      Posted on November 9, 2011 at 7:14am

      Yup. Us new Romans just don’t have it as good as we used to……is that Rome burning…..no it’s America.

      Report Post » grudgywoof  
    • BrerRabbit
      Posted on November 9, 2011 at 7:22am

      My thoughts exactly!

      Report Post »  
  • Shakira Law
    Posted on November 9, 2011 at 5:20am

    Occupy Wall Street should be down at these stadiums demanding their tax dollars back for the state funded stadiums that only have a few fans watching dismal teams. I agree with Firewolf… See ya Vikings and T-wolves.

    Report Post » Shakira Law  
  • grayling646
    Posted on November 9, 2011 at 4:19am

    geezzzz, i didn’t know people still watched pro sports.

    Report Post »  
  • Dustyluv
    Posted on November 9, 2011 at 12:46am

    Obama will bail them out, no worries….Feckless losers always win.

    Report Post »  
  • patbarker
    Posted on November 9, 2011 at 12:14am

    #1 are the Obamaista Thieves…these “playas”…are worthless!!

    Report Post »  
  • FireWolf
    Posted on November 8, 2011 at 11:44pm

    The Timberwolves can take the Vikings with them when they GTFO

    Report Post »  
  • Hungry_i
    Posted on November 8, 2011 at 11:42pm

    Heh, the Phoenix Coyotes. Yeah, I’m gonna miss them.

    Report Post » Hungry_i  

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