Goodell memo: slow economy dictates changes in travel, promotional spending

And winning the World Series doesn't necessarily assure sales projections will be met:

• (SBD): "The party line from many of the larger sports and broadcast properties has been that they remain largely unaffected by the current economic squeeze. However, a recent memo from NFL Commissioner Roger Goodell to league staffers warns of
• impending new business shortfalls at what is usually seen as America ’s most successful sports property.

“Our costs are rising and our league revenues are under pressure,” Goodell wrote, in what appears to be the first admission of economic shortfalls at the NFL. “…This means we must carefully control our costs on a daily basis and aggressively identify new sources of revenue.”...

• "We will all see and feel the effect in our travel, events, promotional spending and other areas.” (Goodell)...

Can sports expect the corporate gravy train to continue, even after a correction in the economy? For now, it’s the slowest corporate sales environment since the post-9/11 freeze"....

• Winning the World Series doesn't guarantee sales projections--Red Sox executive earlier this year:

(SBD): "“While we have seen dramatic growth in recent years for things like corporate hospitality and sponsorships, we are worried about that continuing,” said Sam Kennedy, Red Sox executive vice president and chief sales and marketing officer.

• Kennedy cautioned early this year that the team was unlikely to meet sales projections despite winning a World Series title.
• “We haven’t seen any dramatic cut, although we have had some 2009 planning with sponsors who have told us some stories about their business that aren’t pretty.

We [Fenway Sports Group] also have a sizable NASCAR investment, and while I am no expert, the word around the garage is that unless you are running among the top 10 or 15 cars, it is going to be very tough to attract tier-one sponsors.”"...

• (Teams may consider tapping the diversified MLB.com if and when they're short of cash) sm

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