NFL players play up economic damage of a lockout

Stacey Vanek Smith Feb 11, 2011
HTML EMBED:
COPY
The Denver Broncos offense lines up against the San Diego Chargers defense during NFL action at Invesco Field at Mile High in Denver, Colo. Doug Pensinger/Getty Images

NFL players play up economic damage of a lockout

Stacey Vanek Smith Feb 11, 2011
The Denver Broncos offense lines up against the San Diego Chargers defense during NFL action at Invesco Field at Mile High in Denver, Colo. Doug Pensinger/Getty Images
HTML EMBED:
COPY

TEXT OF STORY

JEREMY HOBSON: The Super Bowl may be over, but there’s a big football showdown on the way between NFL team owners and players. The league’s collective bargaining agreement expires next month. And later today, the NFL Players Association will be warning about the economic effects of a lockout.

Marketplace’s Stacey Vanek Smith has more.


STACEY VANEK SMITH: The NFL brings a lot of money to a lot of different businesses. There’s billions in ad revenue at stake for TV networks, hundreds of millions in ticket sales.

Then there’s the merchandising. Take Electronic Arts’ wildly popular “Madden NFL” video games. EA’s scored more than $3 billion on the “Madden” game franchise, and a lockout would shut that down.

ROBERT BAUMANN: Every year, they’re putting out new video game that has all the updated players with their teams and their skill sets.

Robert Baumann is a sports economist at College of the Holy Cross. He says fantasy football would also get spiked, and that industry has become an online advertising mammoth.

BAUMANN: Depending on whose numbers you believe and what you want to count as a fantasy football dollar, you could be getting up into the billions, certainly.

An estimated $5 billion. But, Baumann says, the little guy would take the biggest hit. He says restaurants, hotels, parking lots and other small businesses that cater to football fans would bear the biggest economic loss of a football lockout.

I’m Stacey Vanek Smith for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.