"Shin Splints"
A Blog by
Doug Logan
The Demise of the Fat Cat
Monday, April 20, 2009
The evidence cannot be ignored. Time magazine has done a cover story on the end to the age of excess. There is so much less discretionary air travel that you can virtually walk up to an airport and get a ticket to any vacation destination. Wal-Mart and McDonald's are packed and boutiques that sell to the "swells" are struggling. Ostentation is out; modesty is in. You can see it in the embarrassed faces of those who used to wind up the engines of their Porsches and Hummers and in the pride of the lucky owner of a dawdling Prius.
The business of sports is not immune. Northern Trust Bank was excoriated recently for their profligate spending at their namesake golf tournament while accepting a TARPS handout from the government. Bank of America cancelled talks on a ten-year sponsorship arrangement with the Yankees and entered into a more modest, one-year pact. There are stories of companies who have long-term leases on stadium suites exchanging them for equal-value in seats in the bowl. New stadium palaces have unsold inventory; even the mighty Yankees are relegated to advertising obscenely priced seats in the pages of the Times, while their brilliant, stealth President, Randy Levine, is reduced to hawking his organization's stadium in print and on television. How the hell can you justify $2,500.00 for a single seat behind the plate at "The House that Greed Built" while your fellow man, or woman, is losing his house, job and retirement savings?
Decades ago, the entertainment and sports businesses were the great democratizers, wherein janitors and CEOs stood in line at the same box office and sat side-by-side to witness a new film, vaudeville show or sporting event. No longer. The last 20 years in this business have seen us pander to our customer by what we have called "differentiation". You can't be a mere patron at our events; you have to be a VIP, a big shot, a Fat Cat. Part of this is the result of being brought up by parents who constantly told us we were "special" or "gifted". We grew up thinking they were right, and now we demand special treatment, with separate parking, entrances, food and suites. It was also, obviously, the result of a capitalistic orgy so intense that the term "super-rich" had to be invented better to differentiate levels of staggering wealth. How do we differentiate the super-rich from the simply wealthy if they're both sitting next to a school teacher out in left field?
I submit that we are about to witness a paradigm shift in the business of sports. We are going to experience a return to a more democratic patron experience, and those who have radically differentiated venues are going to suffer the repercussions for years to come. There will be two drivers to this change. First, the corporate host and his wining and dining is going to shift strategies and focus on moderated entertaining. They just will not be able to survive the scrutiny of a public on the lookout for AIG-like situations. And, with the exit of the corporate buyer, these edifices are going to find individuals don't have the wherewithal to purchase these amenities. More importantly, I predict a trend towards the egalitarian in the way we gather to witness events. The hardships of this recession will provoke a healthy return to our core values where we will revel in bearing witness together with others, regardless of class.
As the steward of track field, I like our position through these changes. We have always been a sport of the people and our patrons at events have a lunch-bucket mentality about the spectator experience. I have never been offered sushi at a track meet! [Although, I recently attended the World Cross Country Championships in Amman, Jordan. I was seated in a tent that had a VIP sign on it. However, the tent next to me had a VVIP sign on it. Probably had the good hummus! I gave up about half way into the event and went out on the course, where I had a ball.] I also like the prospects for the Fenway Parks and Wrigley Fields. Events managers are going to have to focus on a more organic, authentic experience.
Authenticity is replacing ostentation. We are about to witness the demise of the Fat Cat.
USA Track Field CEO Doug Logan is a former beer vendor at Yankee Stadium.
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Doug Logan is the CEO of USA Track & Field
(USATF), the national governing body for track and field, long distance running,
and race walking. Headquartered in Indianapolis, the organization has more than
90,000 members throughout the country.