Sports franchises today have evolved into immensely lucrative entities, and positioning oneself amongst the affluent and influential clubs necessitates the exploration of additional income avenues. Despite its somewhat jargonistic nature, the term ‘revenue streams’ signifies a fundamental aspect of sports franchises’ economic success and their consequent position in Forbes’ esteemed list of wealthy sports franchises.
The Atlanta Braves, hosts of this week’s Major League Baseball All-Star events, is proficient in this domain. Within the NFL, this model of success is best exemplified by the Los Angeles Rams and Chargers. The key here encompasses more than merely owning a stadium; the surrounding land, too, holds significant importance.
To tap into the full potential of their income generation, sports franchises must look beyond their home grounds. They need to gain a substantial share of the revenue flowing from nearby shopping areas, bars, restaurants, accommodations, and mixed-used developments adjacent to their stadiums.
Possessing a physical sports book to obtain a share of lucrative casino revenue is also advantageous. To ensure maximum earnings, which can subsequently be reinvested to create or sustain a victorious team that spectators relish, modern sports franchises must be well-versed in real estate or at least have a very beneficial setup in this field.
This, however, presents a challenge for the Baltimore Ravens. The area surrounding M&T Bank Stadium is not readily convertible into a commercial hub like those around the stadiums of the Rams, Chargers, or Braves.
Directly east, the stadium is flanked by an interstate highway, a public housing establishment, and a suburban area with a lower income demographic. In contrast, its western and southern peripheries are mainly industrial zones, and to the north are parking spaces for Oriole Park at Camden Yards.
Creating a variant of ‘Wrigleyville’, the commercially thriving landscape around Wrigley Field owned by the Chicago Cubs, adjacent to The Bank seems improbable. The game-going experience strengthens drastically when spectators have access to an array of lifestyle and food outlets near the venue.
It’s difficult because of transportation and parking requirements, but it’s definitely something that can be worked out. The economic downfall experienced by Baltimore, like many American cities due to the impact of globalization and de-industrialization, has been well-documented. But that’s a discussion for another time.
Even if M&T Bank Stadium was situated in the Federal Hill district, known as one of the city’s most esteemed areas, the Ravens still would not be able to develop it into an economy-boosting hub like the Rams’ and Chargers’ stadiums.
There was a lot of skepticism when the Braves decided to move to the suburbs. Still, this relocation is sometimes necessary to establish, maintain, and eventually expand a team-oriented district.
SoFi Stadium came into existence on a deceased horse racing facility’s grounds, a model that the Chicago Bears seem eager to emulate. It proves efficient because it’s one of the few places where large, empty plots are available within a reasonable distance to a major city.
Despite these benefits, I still believe that a team should stay faithful to its city and continue to exist within the city limits. However, consistent winnings and performance are also desirable.
In this era, where extreme materialism and capitalism dominate, one is reminded of 50 Cent’s philosophy, ‘Get Rich or Die Tryin.’ Perhaps, to experience continued victories in this climate, selling out has become a necessary evil.