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Bisciotti to businesses: ‘Keep buying suites’

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I’ve written before about how sports are not recession-proof. But the topic was brought home by Ravens owner Steve Bisciotti at a news conference he held last week when he said he is concerned about how the recession may affect the team.

“I’ve said this before: I’m not in this business to make money, but I’m also hoping not to lose money, and we’re running on fairly small margins when it comes to cash flow,” Bisciotti said Wednesday. “So all those companies in Baltimore that buy our suites and everything, I need them to keep on going, and I need the people to keep on buying tickets. So we have to be sensitive with increases and everything else, but it is definitely a factor, and it’s the first time we’re going to go through it.

“But I’ve been through economic downturns in my other business, and so I think that we know how to prepare for those kinds of things. But you can’t prepare for loss of revenues. You just have to try and manage it the best you can and minimize the losses.”

It’s a sticky situation — suites are a big revenue generator for a team, and you don’t want to make the cost prohibitive for a company that is likely scrutinizing its discretionary expenses and may not have many clients left this year to even schmooze at the suite.

But on the plus side, Bisciotti said the team’s performance this season should earn it more primetime appearances for the 2009 season. And national television exposure is good not just for the Ravens but for their relationship with advertisers that pay for the stadium billboards seen on TV.

At what point should fans here start worrying about their team? If finances are an issue, will the Ravens be able to afford a monster contract for Ray Lewis to keep him in Baltimore? And if they can’t, how bad would that be for the city and team’s morale?

LIZ FARMER, Business Writer

Category: Baltimore, Ravens

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