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Why Second Tier Leagues Struggle…

The announcement this week that the Arena Football League, other than minor league baseball seemingly the strongest and most successful of any second tier leagues, is finally going out of business, raises the question why…in this economy, with people looking for affordable events at affordable prices, can’t second tier sports succeed. Even with solid branding plans, decent attendance in second tier markets, and understanding of grassroots marketing and good stories to tell to a fan base, leagues in soccer, football, tennis events, gold events, Mixed Martial Arts promotions, lacrosse, all seem to be falling by the wayside. The real answer is twofold really…the cost of event production is very high, and the support of the largest ticket buyer, the corporate support, is waning. Factor in the reality that television production for these events, although reduced through technology, still remains the true barometer of success, and rights fees are a thing of the past, and the ability to produce becomes a huge barrier to entry. Even minor league hockey, with a similar model as baseball, struggles now in many places. So why does minor league baseball succeed? First of all baseball is a social event more than a game. It is cost controlled by MLB in most places and the operators and marketers are a little more established in their markets than most other second tier sports. The length of season also gives so many more built in nights to sell and with the right revenue stream can become very lucrative. The teams are also year-round solid members of the businesses in those communities, an aspect that many second tier properties lack. Sometimes as the case now with the AFL and some others, the success of the league and the growth that is accompanying it creates failure itself…you simply become to big. Now can cost-contained arena football or indoor soccer exist and succeed? Yes. It actually did in some pockets last year, with af2 and other leagues. The question is can it be a sustainable national property which will draw media, TV and sponsors outside of the local market, or at least in regional partnerships. That remains to be seen. Lastly, does the consumer really need these events with the plethora of entertainment options available today…is it better to invest in participation sports and not worry about professional or elite events in some of these areas? The hope is that these events bring enough to the local economy and to the industry that they again become self-sustaining. However with the lack of public outcry…people these days seem to be content with moving on to another entertainment option…the real “need” for the AFL, the XSL, the IFL and so many others…may not be seen for some time by fans, brands or cities.