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The NFL lockout continues to intrigue fans across the sports world. Now the retail arena is joining the discussion. Gold Star Games is an on the web retailer offering NFL licensed merchandise. The NFL lockout is causing Gold Star Games to prepare their sales forecast for losses and freeze any hiring.
The dispute between NFL owners and NFL players impacts a lot of industries, not just television advertising or nearby city restaurants. Retailers selling NFL jerseys,cheap jerseys from china, apparel, as well as other NFL merchandise could see their smallbusinesses sink in an already struggling economy.
According to The Detroit News, the owners is going to be paid as considerably as $4.five billion in Television network revenues, even if no football is played. Despite the fact that the money would have to be paid back with interest at some point, the players union is throwing a penalty flag. This built in ?¡ãlockout insurance,?¡À players say, immunizes owners in a work stoppage and gives them an unfair negotiating advantage.
The estimated annual ad revenue at stake for the 2011 season:
Fox - $975 million
NBC - $850 million
CBS - $825 million
ESPN - $175 million
A lot of reports talk about these giant media firms and their losing ad revenue. Even so, lost in the discussion are retailers and modestbusinesses offering NFL related merchandise. Roger Goodell, NFL Commissioner, comments on the NFL labor dispute ?¡ãWhether it be new stadiums, whether it be on television, whether or not it be on our merchandise that we offer, you have tocreate value in this environment. We take a look ateach aspect of that.?¡À
As a $2.five billion dollar business, NFL merchandise is the lifeblood of hundreds of smallbusinesses which connect directly with the fans. Rich Spaulding, owner of Gold Star Games which delivers NFL tailgating games, is preparing for the worst. ?¡ãNFL merchandise is roughly 40% of our business. A season with no football means no tailgating. No tailgating means no revenue for a massive portion of our company. Intelligent NFL retail organizations will believe ahead and prepare their business for dramatic revenue loss. Our littlecompanydelivers cornhole games, washer toss, target toss, and other tailgating games. Additionally to the games, chairs,nba jerseys discount, coolers, grills, and tailgating table sales will drop without having tailgaters.?¡À
Spaulding continued, ?¡ãWe are trying to diversify our product line by offering more NCAA,soccer jerseys discount, MLB and NBA merchandise while still supporting our NFL line. It's quitetough to project sales losses with no football, but we hope to make-up 20% of those lost sales with the other sports.
The National Football League is still king in our world, but adding a lot more baseball and college merchandise could soften the blow of a lockout. Even so, most smallcompanies have already felt the effect of a poor economy. The popularity of pro football is at an all-time high. Why ruin that achievement by taking the item away from the masses? It couldn't come at a worse time when thinking about the shaky economy appropriate now.?¡À
Josh Wilson, a die-hard Indianapolis Colts fan living in Sarasota, Florida isn't rushing to obtaina new Peyton Manning jersey anytime soon. ?¡ãI usuallypurchase new Colts Gear prior to football season starts. This year, I will hold back on buying anything because it's tough to support my team when they don't have an opponent.?¡À
According to Spaulding, Gold Star Games will not be hiring temporary Holiday employees if the lockout moves to a postponed NFL season. Thousands of other tinybusinessmight be thinking the exact same. Apparel, memorabilia, and other related NFL industries could see hiring freezes or even job losses.
There'ssmall doubt a lockout would hurt the NFL brand, ad revenue, localbusinesses and merchandise retailers. Within the end, billion dollar owners may possibly win their dispute, but at a pricesignificantlybigger than expected.
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