Southern California sports teams are hit by sharp drop in revenue

Despite an NBA championship and other major sporting events last year, professional and amateur sports organizations in Southern California have been stung by the recession.

With drops in attendance, ticket prices and part-time employment, sporting events drew 18% less revenue in 2009 compared with 2007, according to a study released Monday by the Los Angeles Sports Council and the Los Angeles Area Chamber of Commerce.

In all, 55 sports organizations — including the Los Angeles Lakers, Hollywood Park, the Anaheim Ducks and the athletic departments for several local colleges and universities — generated $4.2 billion in revenue last year, down from $5.1 billion in 2007.

“I think we were all surprised that attendance numbers dropped as much as they did,” said Gary Toebben, president and chief executive of the chamber. “Clearly, this is a factor of the economy.”

The three-month study, conducted by graduate students from the UCLA Anderson School of Management, was based on revenue reports and employment and attendance figures from the sports organizations. The study was last conducted in 2007.

The study examined the revenue generated by the sports organizations, not the money spent by fans who paid for lodging, food, travel and souvenirs outside of the sporting venue.

Much of the decline in direct revenue was attributed to a combination of factors, including a 16% drop in annual attendance to the events and a slight decrease in ticket prices. As a result of those declining numbers, sporting venues cut part-time employment 39%, according to the study.

“Conventional wisdom says that sports is considered somewhat recession-proof, but not a recession of this magnitude,” said David Simon, president of the sports council, a nonprofit group that promotes economic development through sports.

Still, Simon pointed out that the combined attendance at sporting events in Southern California last year was nearly 21 million, compared with 24.9 million in 2007. “The number is down, but it is still significant and I expect it will improve as the economy improves,” he said.

Last year, the Los Angeles Lakers won the NBA championship, but the professional sports team with the highest attendance in Southern California was the Dodgers, whose season attendance was nearly 3.8 million.

The highest paid attendance for a single-day event last year was the Rose Bowl game between Ohio State and Oregon, which drew 93,293 fans.

hugo.martin@latimes.com