Economy impacts the pro sports world

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By Blake Oestriecher

Given the state of today's economy, it should come as no surprise that professional sports organizations have also felt the effects. 

The financial woes of the United States have greatly altered the sports world. One of our country's newest sports, the Arena Football League, is no longer. The AFL had previously called off the 2009 season, but all indications were that it would return in 2010. However, two teams, including the New Orleans Voodoo, ceased operations and the league recently announced that it is now shut down indefinitely. 

The AFL had served as the grooming ground for several NFL players, such as Kurt Warner, who brought the fast-paced style of the league to the NFL. Warner turned the St. Louis Rams into "The Greatest Show on Turf" and led the team to one Super Bowl Victory. As of the time being though, the AFL is no more and NFL fans may never see another Warner in the league.  

Just like the AFL, the NBA has been hit hard by the struggling economy. Just a few years ago, NBA teams were giving out absurd contracts. Exhibit A: Rashard Lewis. In July of 2007, Lewis agreed to a sign-and-trade deal that sent him to the Orlando Magic. The six-year deal was worth a staggering $118 million. Although a key part of this past season's Eastern Conference Championship team, Lewis may only be the third best player on the Magic's roster.  

But the Magic was not the only team thoughtlessly spending money. Exhibit B: Peja Stojakovic. Stojakovic makes roughly $14 million per season, a ridiculous price tag for a guy who is probably only the fourth best player on the New Orleans Hornets.   

Now, just two years later, these types of contracts have been almost unheard of in the NBA. Except for franchise players like Brandon Roy, most free agents have had to settle for much less money during this offseason. For example, take a look at former LSU star Glen "Big Baby" Davis. After an impressive showing while filling in for Kevin Garnett last season, Davis was hoping for a contract around $5-6 million per year according to ESPN.com. Davis got his $6 million, but that was for two years- roughly half the salary he was originally expecting. 

Then, there is David Lee of the New York Knicks. One of the NBA's most underrated players, Lee led the league in double-doubles last season, but he is not getting offers anywhere near as high as the contracts players like Stojakovic agreed to. Quite simply, this is a result of financial struggles in the sports world. The NBA has been hit the hardest of perhaps any major league. In all likelihood, the league's salary cap will drop to roughly $53 million after next season. Thus, today's economy will continue to affect the league for another few years. 

The MLB, even without a salary cap, has also seen the economy take a toll on player contracts. Unless it's someone signing with the New York Yankees, who shelled out over $300 million this past offseason, most free agents had to settle for less money than they were originally expecting to get in the open market.   

In addition to money, most free agent deals signed during the offseason were short-term, such as those signed by All Star caliber players like Manny Ramirez, Orlando Hudson and Adam Dunn. Most MLB teams are skeptical of giving out long, expensive contracts during such uncertain economic times. And the Toronto Blue Jays basically gave away former all-star Alex Rios for nothing simply to save the team close to $60 million. Similar to the NBA, MLB teams have also become notorious for trading away expiring contracts to clear salary space for upcoming seasons. 

Things could not be more different in the NFL where teams are spending more money than ever. Although Matthew Stafford has yet to throw a pass in the NFL, the Detroit Lions signed him to a six-year, $72 million deal with $41.7 million guaranteed. Similarly, the Seattle Seahawks signed rookie linebacker Aaron Curry to a six-year, $60 million deal with $34 million in guarantees.   

Then, of course, there is Eli Manning. Manning recently agreed to a six-year, $97 million extension with the New York Giants, making him the league's second highest paid quarterback.  Deals like these show that there are no signs that the economy will have as much of an impact on the National Football League. 

Originally Published: Issue 812 - August 18, 2009

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