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The sporting life stumbles out of the gate as attendance figures fall short.


Attendance at six of the seven professional sports The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.
 teams in the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  area fell during the last completed season, creating financial problems for just about all of the region's franchises, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 analysts and available information.

The six teams' home attendance dropped an average of 13.4 percent, which is tied directly to one of the main sources of franchises' revenues -- ticket sales.

According to information provided by the teams, the only professional sports franchise to increase attendance was the football Raiders, which from the 1990 to the 1991 season recorded a 9.5 percent jump in patrons. The current National Football League season will not be over until next month but the Raiders are expected to show a fairly sizable drop in attendance.

Industry analysts and sources doubted the decline in patronage has forced any local franchises into serious financial trouble. But they said 1992 was not a good year for the local teams because none of them had particularly a strong season on the field, which generally translates into a good year financially. They said the drop in attendance can generally be linked to an equal or smaller decline in overall revenues.

All the local franchises are operated as private companies and therefore are not required to reveal financial data. But industry experts said the value of most of the local teams has probably dropped over the last couple of years.

The sources noted a Financial World magazine study last summer that asserted the only local teams to have increased in value over the past year were the basketball Clippers and the hockey Kings.

In its second annual study of professional sports teams, the magazine said the Kings' value has increased 33 percent during the past year to $60 million and the Clippers' value has climbed 26 percent to $54 million.

Industry analysts said baseball teams generally are having a more difficult time financially than football, basketball and hockey franchises.

"From a business point of view, baseball teams have a cloud over cloud over
Verb

1. (of the sky or weather) to become cloudy: it was clouding over and we thought it would rain

2.
 them right now," said Robert Kelly There are severable notable individuals named Robert Kelly:
  • Robert Kelly, a U.S. naval officer during World War II.
  • Robert Kelly, a U.S. Army intelligence officer.
  • Robert Kelly (1935- ), a poet.
  • Robert Kelker-Kelly (1964- ), a soap opera actor.
, who does valuations of professional sports teams for American Appraisal Associates, an international consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee
consulting company

business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a
 based in Milwaukee, Wis.

"Other leagues have been able to hold down salaries better than baseball and it's expected that future television contracts will be worth less than current agreements," said Kelly.

The basic sources of professional sports teams' revenues are ticket sales and multiple-year television and radio broadcast contracts. Other revenue sources, which vary among teams, include stadium parking, and concession stand Concession stand is the term used to refer to a place where patrons can purchase snacks or food at a cinema, fair, Stadium, or other entertainment venue. Some events or venues contract out the right to sell food to third parties.  and team merchandise sales.

A team's main expense today is player salaries, followed by general operating expenses Operating expenses

The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted.
 that include costs related to renting or owning a stadium.

The Los Angeles area's two professional baseball teams -- the Dodgers and Angels -- both recorded significant drops in attendance during the season that ended in October.

Attendance at Angels home games in Anaheim dropped 14.5 percent and the number of people who watch- ed the Dodgers play in Los Angeles declined 26 percent.

The team that suffered the most in 1992 was the Dodgers, a franchise that because of its winning tradition and location was thought to be one of the most valuable professional sports operations.

"This was not a good year for us," said Bob Graziano Bob Graziano is a former president of the Los Angeles Dodgers of American Major League Baseball. He is currently Managing Director for the Western Region of Northern Trust, an investment management company. , vice president of finance for the Los Angeles Dodgers "Dodgers" and "Brooklyn Dodgers" redirect here. For the American football team, see Brooklyn Dodgers (football). For the Eastern Basketball Association team, see Brooklyn Dodgers (basketball).  Inc.

"A combination of factors led to our problems: the economy, the civil commotion CIVIL COMMOTION. Lord Mansfield defines a civil commotion to be "an insurrection of the people for general purposes, though it may not amount to rebellion where there is an usurped power." 2 Marsh. lnsur. 793.  in April that forced us to cancel games, an earthquake prior to the start of a game, the second highest payroll in major league baseball "MLB" and "Major Leagues" redirect here. For other uses, see MLB (disambiguation) and Major Leagues (disambiguation).
Major League Baseball (MLB) is the highest level of play in North American professional baseball.
 and one of the worst on-field performances in baseball.

"I can't give you specifics but we are losing money and could lose more because salaries keep going up and it's forecasted that television revenues will be going down," he said. Team officials from the Angels were unavailable.

The local team with the strongest gate performance over the past two years has been the Kings, which sells out just about every game it plays at the Great Western Forum. But even the Kings are struggling financially, said team President Roy Mlakar Roy Mlakar is the current president and CEO of the Ottawa Senators of the NHL and Scotiabank Place. Education
Roy Mlakar earned his degree in communications and journalism from Akron University in 1972.
.

"Even though we continue to sell out our games, our expenses keep rising from player salaries and our agreements for stadium rental. And unlike other teams, we are limited in our concession and parking agreements. Right now, we are trying to address those problems and do something about our expenses," Mlakar said.

Teams that seem to be going in opposite directions in terms of both on-field and financial performances are the National Basketball Association National Basketball Association (NBA)

U.S. professional basketball league. It was formed in 1949 by the merger of two rival organizations, the National Basketball League (founded 1937) and the Basketball Association of America (1946).
 Lakers and Clippers. In the basketball season that concluded last spring, home attendance at Lakers games fell 19.5 percent but it dropped only 1.5 percent for the Clippers. So far this season, which started in November, home attendance at Clippers games is up but it's down at Lakers games, according to the two teams.

"The team has been in the black for the past couple of years now and we think that we are now becoming part of the sports scene here," said Clippers spokesman Mike Williams Mike Williams may refer to:
  • Mike Williams (New Zealand), President of the New Zealand Labour Party
  • Mike Williams (freelance writer), UK software developer and freelance writer critical of 9/11 conspiracism.
. "But in sports teams, it all comes down to how well you perform. So we have to keep playing well."
Home attendance for Los Angeles-area professional sports teams
(include regular season and playoff games)
                1991-92        1990-91      % incr/
Team             season         season       (decr)
Angels         2,065,444      2,416,236      (14.5)
Clippers         514,286        522,104       (1.5)
Dodgers        2,473,266      3,348,170        (26)
Kings            686,025        722,987       (4.8)
Lakers           715,930        889,740      (19.5)
Raiders          521,600        476,581         9.5
Rams             412,685        479,356        (14)
COPYRIGHT 1992 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Title Annotation:Year in Review 1992: Sports
Author:Deady, Tim
Publication:Los Angeles Business Journal
Article Type:Industry Overview
Date:Dec 21, 1992
Words:936
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