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Example research essay topic: Economic Activity Ticket Sales - 707 words

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Arizona Baseball Is Losing More Than Fans What was once one of the most promising expansion franchises in Major League Baseball (MLB) is now on the verge of losing more money than any other team in baseball this year. There are many factors that are making this happen and some can be linked to macroeconomics. The Diamondback's were 1 of 4 teams added to the league in the past decade. While a seemingly small number it actually constitutes a flooding of the market. The team's first year average attendance is down more then 8, 000. Yet in the face of decreasing ticket sales the team has gone on a spending spree signing on free agents and bloating its payroll to one of the highest in baseball.

This year the team also missed the playoffs and lost out on a projected $ 10 million in ticket sales and merchandising at the ballpark. Before the first inning was even played at Bank One Ballpark, the team and its investors were in the red for 130 million dollars for the cost of the stadium and franchising fees. The main problem that the Diamondback's are facing is a decrease in demand for a professional baseball team in Phoenix. It seems that the team is not operating at its optimum size for creating profits, making the Diamondbacks low in demand in the Phoenix economy. Due to the decrease in demand, the Diamondbacks will be forced to lower prices to influence people to watch a second class ball club at a second rate price. The team is performing so poorly, with lower prices and less fans attracted, the club's profits will in turn decrease.

We see this a lot, because the club is not operating well enough, it creates less economic activity taking place for the Phoenix economy. Less economic activity in Phoenix leads to a decrease in GDP, which also slows the economy down. So for the next season, the Diamondbacks will have to pay players less money if their contracts are going to be renegotiated, cut back other expenses and focus on making profits. A company cannot operate if it does not make profits, and the Diamondbacks are earning a lot less than what is expected of them, and could possibly soon vanish.

But if the ball club starts to perform up to par, that will cause an increase in the demand in the Phoenix economy. First, the club needs to perform well, the ticket prices to see the Diamondbacks would go up because everyone will want to watch them, which would lead to an increase in the clubs profits. Plus, the profits the Diamondbacks make of off the merchandise and the condiments sold at the stadium would also increase their profits. The club would also increase profits for local restaurants, hotels, and every other company that contributes their services to the ball club. This creates an increase in economic activity in the Phoenix economy. The better the club does during the season, the more chance they have to make the playoffs, that will increase the demand to see the ball team even more.

Also, the better the team does, the more sponsors the club gets and the more publicity the club and individual players receive. Thats also generates an increase for other company's products such as Nike, Upper Deck (sports cards) American Airlines, New Era, BallPark, and all other MLB products. Due to the fact that the ball club earns a percentage on the MLB's merchandise and individual player sponsors, so the club helps promote these products and services to increase their own profits. The company's that sponsor the club influence more customers to go there because they may get a discount or a bargain just for using the ball clubs sponsors, also the publicity of the company makes them more known and draws more customers increasing their profits as well. The better the Diamondbacks do and the more they draw people that want to see them, the more the people use their community's services increasing the economic activity there. And obviously if the club does not do so well then there is less economic activity.

Depending on how well the local ball club performs effects the local economy. Bibliography:


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Research essay sample on Economic Activity Ticket Sales

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