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Counter-Trend Spending & College Sport

I have to begin by letting everyone know that this topic (and a lot of the content of this post) is the result of an e-mail conversation I had with Nick Infante, the illustrious editor of College Athletics Clips. If you are not familiar with College Athletics Clips, it is a fantastic service that keeps professionals in college athletics up-to-date on news and events through providing summaries of articles as well as commentary pieces. Best of all, OHIO has paid for access for students through the library website (using your Oak ID).

Anyway, back to the topic. We all know that the country, and most of the world is in the midst of a recession. So, what is the best strategy for college athletic programs to survive and even thrive in this economic climate?  I’m not sure this post will answer the question, but I want to propose one idea that Nick and I think has some merit.

Can a case be made for going against the grain and increasing instead of decreasing spending in tough economic times? The term counter-trend spending (or as Nick puts it “ignore-the-recession spending”)  encompasses this idea.

Nick argues that, “Whether you’re a big-time athletic program, a beer brand or an appliance store, strategic spending during a recession could be an effective way to gain on competitors. Increased spending – on personnel, advertising, price promotions, etc. — could attract recruits, fans, coaches & staff (for big-time athletic departments); new customers, distributors and bars/restaurants (for a beer brand) and new shoppers (for an appliance store).”

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February 1, 2009 Posted by | College Sports Business, Finance, Marketing, Sponsorships and Sales, Uncategorized | , | 3 Comments