Sports has power to get through global recession: George Gillett
The business of professional sports is not only able to withstand the current global economic downturn, Montreal Canadiens owner George Gillett said this past weekend, it can find opportunity amid the tough times.
The Colorado resident told delegates from around the world at SportAccord 2009 that sports and entertainment are the last areas to be hit in a recession and are among the first to bounce back.
The annual international sports conference with about 1,200 delegates wrapped up on the weekend in Denver.
Gillett was among a number of high-profile industry speakers that lauded the staying power of sports during times of economic crisis. He spoke on the issue of global sports ownership in the 21st century.
Sports is a refuge to many people worldwide, he said, but the key for sports from a business standpoint is that it brings in the male demographic in a way that other entertainment forms can't, making it attractive for media and sponsors, even in tough times.
"Organizations will have to respond to the demand cycle, provide value and be more competitive," he said.
"We will have to offer more in the new age than ever before."
While Gillett touted sports' resiliency, a panel of four prominent industry leaders led a session on the future of the industry.
The panel, which featured MLS commissioner Don Garber, EA Sports president Peter Moore, ESPN vice-president John Skipper and Tim Lieweke, president of Anschutz Entertainment Group and the Los Angeles Kings, stressed the combined impact of social networks and technology on sports business in the short and long-term future.
Fans have never been more powerful and engaging them is critical to an organization's success, panellists said.
An example cited of this was EA Sports' recent use of social communities developing games, which has been called a sea change in the way video games go to market.
The panes said leagues have interact more with fans to convince advertisers to spend more on sports properties. This could mean the difference between those organizations that survive the recession and those that suffer.
This was the first time the conference has been held in North America in its seven years. Next year, SportAccord will take place in Dubai, U.A.E., from April 26-30.
Gillett rebuts talk of Habs sale
Gillett also took SportAccord as an opportunity to clarify recent reports the Canadiens may be up for sale.
He said he was offended by media coverage of what he considers a private family matter, that he has hired advisers to look into his estate planning.
He also criticized distorted media reports of a sale of his assets and countered that a recapitalization is likely to happen, but no short-term sale of assets.
Hockey czars debate Olympic participation
The ongoing debate over NHL participation in future Winter Olympics came to a head again.
NHL commissioner Gary Bettman and IIHF president Rene Fasel squared off over the issue during a session on improving relations between leagues and federations.
Fasel, who supports NHL player participation, called for the NHL to shut down during the Olympics.
Bettman countered that suspending play raises issues for the league and that Fasel's negligence of these issues is "disrespecting" to NHL fans.
Olympic bid cities make presentations
The bid committees of the four cities vying for the 2016 Summer Olympics — Chicago, Rio de Janeiro, Madrid and Tokyo — made 30-minute presentations before a packed ballroom.
Delegates were treated to four quality presentations, but many media members noted Rio's presentation for its passion.