At-Risk Sports Teams: Detroit Tigers

Minyanville Staff  Jul 14, 2009 8:40 am

At-Risk Sports Teams: Detroit Tigers
 
First-place team can't draw crowds.
 

Under an enormous General Motors sign, there's a banner that reads: “The Detroit Tigers support our automakers.” And even though GM couldn’t afford the ad space at Comerica (CMA) Park this year, Tigers owner Mike Ilitch let it stay.

Call it an act of solidarity.
 
 
 
 
 
 
 
 
 
 
 


For residents of Motor City, the Tigers’ current season is a welcome distraction from their economic troubles. After a disastrous 2008 season, the team is in first place in its division.

But despite the Tigers’ success on the field, no one is blind to the effects Detroit’s slump has had on the team’s bottom line. Attendance is down almost 30% from last year, with 10,000 fewer fans showing up at the games. The empty stands are particularly noticeable given that the team set an attendance record in 2008, drawing 3,202,654.

But then again, a lot has changed since 2008.

For starters, the auto industry -- the lifeblood of millions of Detroit-area residents -- has all but fallen apart over the last few months. GM's bankruptcy meant the elimination of 7 plants and 9,000 jobs in Michigan. Over 140,000 manufacturing jobs have disappeared since 2004. Detroit’s unemployment rate has skyrocketed to triple the national average.

All this means that fewer people have money to burn on tickets, hot dogs, beers and Tigers merchandise.

"We actually had a team meeting about it," Tigers manager Jim Leyland told The Boston Globe. "I told the guys: 'This is not a year to not run out ground balls.' We get a check every 2 weeks, and there are people who just found out they ain't getting a check. We've got to pinch ourselves and realize how lucky we are."

But even the players are a little less lucky in 2009.

Last year, Tigers payroll was $138.7 million, the second-highest in Major League Baseball -- and just behind that of the New York Yankees. But after the team landed in last place, owner Mike Ilitch had a tough time justifying the sky-high salaries. This year, Ilitch slashed payroll $24 million to $114,3 million. The team is now the fifth-highest paid in the league, behind Boston.

Slashing payroll isn’t the only tactic that Ilitch -- who is also the founder and owner of Little Caesars Pizza -- has used to shore up his business. Ilitch raised ticket prices on “premium games” by $2 to $7. Many season-ticket holders are also seeing hikes. But given the sudden drop in attendance, some believe Ilitch’s strategy may have backfired.

For now, the Tigers remain financially solvent. But to sustain the team’s growth, Ilitch will need to find a way to bring the fans back to Comerica Park. Fortunately, with the way the Tigers are playing these days, it shouldn’t be too hard.

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Comments (22) See All Comments »
07-19-2009, 8:58 am
The author of this writes that Detroit is in trouble but somehow ignores the major league team in his hometown -- the Pittsburgh Pirates.
The Pirates are much more of an at-risk team. Attendance is 28th out of 30 teams and they have a new park,
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07-19-2009, 9:55 am
This article is just a furthering of the let's bash Detroit" mentality. It is so skewed, so inaccurate it is hardly "journalism".

Attendance is on pace to be 2.5M this year, a 22% drop from 2008. But hey, let�
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07-19-2009, 11:36 am
Just finished reading this " news article" which was so conspicuously featured on the MSN home page under the Money section. The first thing I did when I registered to make a comment regarding this lazy piece of faux journalism, was to un
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07-20-2009, 11:19 am
As said by most of the posters preceding me, is this guy even a sports fan? I picture some economist sitting behind a desk clambering for an interesting take on the financial stability of sports teams. He quickly panics after realizing that a general
Read More
07-20-2009, 12:17 pm
This article is one of the worst pieces of journalism I have read in a while.
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