MLS on the Rise - Nathan Moran

Nathan Moran

Mrs. Straub

AP Economics - Insight

April 25, 2016

MLS on the Rise

Soccer, or known in most other countries as football, is the world’s most popular sport. It leads by a large margin over the next sport with over 3.5 billions estimated fans. With that being said, soccer lacks the support here in the United States. The MLS severely lacks the following that other sports in the US get like the NFL, NBA, MLB and NHL but it is definitely on the up and up. Due to the amount of kids that are and have been getting involved with soccer the popularity grows with them. Kids that played soccer as kids and are becoming adults are attending games and supporting teams. This often leads parents to get involved as well only to slowly start the landslide effect of popularity for the sport.

The demand for soccer memorabilia and tickets is on the rise. The Portland Timbers, a MLS soccer team, sells out almost every soccer game they play at home. This is a huge change from teams struggling to fill the lower bowl. It was announced at the beginning of the season that the season ticket holder renewal percentage for the Timbers was at 98 percent. That kind of renewal percentage is completely unheard of. It is true that the price level for the MLS is not as high due to the MLS not being as popular as other leagues but season tickets are still not cheap. Some of the most popular American football teams struggle to reach 90 percent.

As the MLS gains popularity there is a demand for additional teams in different cities. Minnesota and Atlanta are the planned 21st and 22nd teams to join the MLS. Atlanta is even funding a new stadium to house not only Atlanta United FC but also the Atlanta Falcons. Other cities are also on the hunt to get a MLS team. Los Angeles is set for another team come 2018. Also, Miami is looking to add a team in 2018. The new news that is coming out is that the owners of the Detroit Pistons and Cleveland Cavaliers are going to come together to get a team in Detroit.

In the short run you can see that the MLS is gaining traction and popularity throughout the United States in a variety of different ways. When it comes to the long run who knows what will happen, but if the trend continues, the MLS could become one of the more popular leagues in the United States.

Works Cited

Gallivan, Joseph. "Bring the Noise, Bring the Paint." Oregon Local News. Pamplin Media Group, 7 Mar. 2016. Web. 25 Apr. 2016.

"Expansion." MLSsoccer.com. MLS, n.d. Web. 25 Apr. 2016.

Is Germany Destroying the Rest of the Eurozone Economies? - Aidan Borre

Is Germany Destroying the Rest of the Eurozone Economies?

For the past decade Germany has become a major exporter and an economic super power. Some of Germany’s top exports are vehicles, pharmaceuticals, and mechanical parts(Workman). Germany was ranked 4th for the highest GDP in the world and in the past decade has shown a trade surplus. The country's economic policies are seem to be unrivaled and in the aftermath of a slowing Chinese economy Germany has managed to fill the void in supply left by China. However this doesn’t come without consequences.

As we know a country can’t produce at a surplus without another country experiencing a trade deficit. The country that has been given the short end of the stick due to Germany’s surplus was Greece. Germany has lent Greece money in the past to help make up for their trade, but now they are asking Greece to pay. However, Greece can not possibly pay Germany back as Greece has only posted a small trade surplus within the last three years as shown by the graph, and now in post economic collapse with no sign of recovery Germany may be waiting for quite some time for repayment. Without change in Germany’s economic policy the condition of the macroeconomy in the eurozone will continue to worsen.

Now you may be wondering how could you possibly come to a solution that fixes the economic problems of the eurozone as well as not disrupt the German economy. One solution rejected by Germany was to decrease Germany’s exports allowing Greece an opportunity to create a larger trade surplus and create economic growth. To address Germany’s loss of foreign trade it would be necessary for them to increase domestic consumption. To do this it would be necessary for the German government to increase government spending or to cut taxes, which since the government is currently operating with a surplus would be fiscally feasible(Mattich). This plan would allow the rest of the eurozone economies to stabilize while Germany continues to enjoy the benefits of going a decade without a trade deficit. However as well as this plan could work Germany has showed no signs of moving away from its foreign trade, and with multiple nations headed for elections it appears as though their will be no chance to change this in the next couple years(Associated).    

 

The Associated Press. "The Latest: Obama: Time Not on Side of US-Europe Trade Deal." ABC News. ABC News Network, n.d. Web. 26 Apr. 2016. <http://abcnews.go.com/Politics/wireStory/latest-german-minister-us-budge-trade-deal-38629899>.

Workman, Daniel. "Germany's Top 10 Exports." Worlds Top Exports. N.p., 24 Mar. 2016. Web. 26 Apr. 2016. <http://www.worldstopexports.com/germanys-top-10-exports/>.

Mattich, Alen. "Why Germany's Record Surplus Isn't Helping the Eurozone."WSJ. N.p., 9 July 2015. Web. 26 Apr. 2016. <http://blogs.wsj.com/moneybeat/2015/07/09/why-germanys-record-surplus-isnt-helping-the-eurozone/>

Is Golf a Dying Sport? - Ryan Stoffield

Ryan Stoffield

Mrs. Straub

Ap Econ-Insight

April 25 2016

Is Golf a Dying Sport?

A game that’s been around for centuries seems to be dying. The game that promotes integrity, patience, and discipline is having a hard time recruiting new players. Golf has been a sport that in the last 10 years has been significantly declining. Many courses are closing and even prestigious clubs are having to open to the public just to stay alive. There are many reasons why golf isn’t the perfect sport for the 21st century American, the time and the money just to mention few. Although the numbers in retail and annual play are down, don’t say golf is dead yet it has been around for about 500 years.

Overall the demand to play golf has been going down. Because of this the amount of profits the golf courses are making are going down.  The demand in the game of golf in recent years has been based on one golfer. The rise and fall of Tiger Woods and his dominance on the PGA Tour has a correlation between the amount of interest in the game (Greenfeld).  As you can see on the chart the highest demand for golf was in 2005, Tiger’s peak.  Tiger not only drew more interest to the game he also inspired thousands of young players to play the game. Not only has Tiger’s impact stayed in the United States, it has expanded to hundreds of other countries in their pursuit of the game. Without one of its most important influencers playing his best golf is going to need to find someone new who can push the game forward.

Another area of the golf industry that is struggling is the golf retail business. Large companies have had to lay off workers or file for bankruptcy because consumers don’t have the interest in the game. In addition to the lack of interest the overall price level on many of the things in golf is very high.  Many golf companies launch new and improved products each year which raises the price of these products (Germano). Golf retail stores like Dick’s Sporting Goods are cutting the space that golf holds in their stores and using the space for other revenue producing products.  

Although there are the negatives when it comes to playing golf such as the time and monetary commitments players must devote to the game technology is on golf’s side. One of the latest advances in the game has been TopGolf. TopGolf is the combination of a restaurant, bar, and driving range all in one. Best of all each golf ball is programed with a microchip and can be tracked to the multiple targets in the hitting area.  Players can compete with each other in a fun and competitive setting.  Some believe that TopGolf is the game's new Tiger Woods and will regenerate the demand for the game (Greenfeld). Another important fact to notice is that 54% of TopGolf’s customers are between the ages of 18 & 34. TopGolf has been able to draw the younger client into the game something only Tiger was able to do.  

Overall the status of the game will depend on how this generation of millennials accepts the game. The new advances in technology and an improving economy should help the game of golf in the short run but whether it will last unknown. Companies like TopGolf and others making the game more fun aren’t letting the game of golf die. The game is in a slump right now, but it will recover well and adapt to this new technology with improved technology offered on the course drawing more demand and interest to the game. Golf isn’t dead just yet.

Works Cited

Germano, Sara. "A Game of Golf? Not for Many Millennials." WSJ. Dow Jones & Company, 1 Aug. 2014. Web. 25 Apr. 2016.

Gray, Robert D. "Topgolf's Appeal to Millennials Catches Sport's Eye." SportsBusiness Journal. American City Business Journals, 27 Apr. 2015. Web. 25 Apr. 2016.

Greenfeld, Karl Taro. "The Death of Golf." Men's Journal. Men's Journal, 2016. Web. 25 Apr. 2016.                                               

                                      

Economics of the NBA Finals - Collin Olsen

Economics of The NBA Finals

This past weekend marked the start of the 2016 playoffs which will continue until the middle of June. Incredible matchups between teams will be happening constantly until only two teams remain, and many think these two teams will be a rematch of last year between the Cleveland Cavaliers and the Golden State Warriors. Considering the Warriors broke the record for most wins in the regular season and the Cavaliers are still dominating the eastern conference this matchup wouldn’t be much of a surprise, but it would still have a major economic impact on both teams and players.

Last year before the NBA Finals the Warriors team value was about $1.3 billion, but now it is currently evaluated at $1.9 billion (Forbes). This nearly 50% increase in value can do a lot for a team, and more importantly the area around it. Many people forget that any professional sports team is a major part of a city’s identity both socially and economically. For example businesses around the arena will most likely increase their profits because of the increase in attention to the area. In addition to this more businesses will realize this and want to make investments for their businesses in that area to take advantage of these profitable opportunities. This trend will likely continue if the warriors can continue their playoff success and get put into the conversation for ones of the best teams in NBA history.

The Finals also had a large impact the players of these two teams. None more so than Stephen Curry. According to Repucom, a large social analytics firm, Steph became the top ranked NBA player on appeal, and was ranked third on people recognizing his name behind only Lebron James and Kobe Bryant. With his astonishing regular season this year these stats most have increased even more, which would in hand increase demand. This would also increase the price level for his products because of the rising popularity of his name.

One last major impact of the NBA Finals is on the TV station. For the last few years ABC (which is owned by Disney) has bought out the rights for the NBA finals and many other playoff series. This is a pretty safe investment for them considering the magnitude of the event, but last year it really paid off for them with the best ratings for the finals since Michael Jordan played. As the supply of basketball begins to fall more viewers typically funnel into the biggest series of the year, in fact last year there was an average of 19.2 million viewers per game throughout the 6 game series, which was an increase of about 25% from the year before (Forbes). If the series does end up being between Golden State and Cleveland ABC could undoubtedly advertise it as one of the greatest series of all time. With the phenomenal regular season accomplishments of the Warriors as they are seeking a repeat championship they are faced against a revenge hungry Cavaliers team led by Lebron James, which was also plagued by injuries during their playoff run last year.

Overall no matter what teams play in the Finals this year there will be a great financial impact for the teams, players, and the companies behind the scenes. However if it does come down to a rematch of last year then these impacts will become even larger, and might even break some records for TV ratings. Without this large championship at the end of the season there would be far less profits in the NBA, which shows how everything put into it can financially change the outcome of the league.

Works Cited

Badenhausen, Kurt. "2015 NBA Finals: Winners And Losers." Forbes. Forbes Magazine, 17 June

2015. Web. 19 Apr. 2016.

Economic Impact of the NBA Finals - Robert Wagner

Robert Wagner

Mrs. Straub

AP Econ

16 April, 2016

Economic Impact of the NBA Finals

Very recently, the NBA playoffs kicked off with a few stellar and a few not so stellar games for the public eye. After a season filled with so much drama such as the retirement of Kobe and the Golden State Warriors finishing the season with the best record of all time, an exciting playoffs would be a great way to cap off a memorable season. On a personal note, the fact that the Bucks have been snubbed once again from making the playoffs really grinds my gears, but the predictions for next year's finals are fairly simple: Bucks in 6. A championship team’s local economy is seriously affected by a team's finals run, so when the bucks win it all next year we can know what to expect from the local economy.

In 2013 when LeBron James and the Miami Heat faced off against a talented San Antonio Spurs team, Becky Bridges, San Antonio’s Chamber of Commerce Spokeswomen said “the economic impact from a Heat-Spurs game could generate $3 million to $4 million a game in total revenue” (Degollado). San Antonio hosted a minimum of two games in 2013, with a maximum of three, and because the series was so tight a game 6 was played in San Antonio. This means that San Antonio generated nearly $12 million, which “does not include T-shirts or souvenir sales. Also print shops making signs and banners are not factored in” (Degollado). When you put these stats in perspective, the Bucks will obviously be winning in 6 meaning that they will have 3 high intensity games at home in Milwaukee. The people of Milwaukee and the surrounding communities have been waiting agonizingly long for a Bucks championship run, and with the thrill of seeing the Bucks final games in the Bradley Center being at an all time high, ticket prices will skyrocket because the demand for tickets will be so great. Along with seeing the final games at the Bradley Center, Bucks fans will be treated to some of the best players in the game today. The Milwaukee squad is led by none other than the Greek Freak, Giannis Antetokounmpo, a top 50 NBA player in his own right. A chance to witness his basketball wizardry is sure to bring fans to the great city of Milwaukee from all over the country. While all the crazed fans flock like geese to the shores of lake Michigan, local monopolistically competitive small businesses will be putting up advertisements all over the suburbs to buy the fairly priced Bucks merchandise. This competition for all things Bucks will lower the prices so that each chain can keep up with its competitors, which in turn will increase the quantity sold.

Despite the Bucks firepower at all positions, they are surprisingly the 29th most valuable franchise in the NBA (Forbes). That’s just one spot better than the New Orleans Pelicans, a newer team that is said to move up a few spots on the list in the coming years. For a complete list of the top franchises click here. That means that by 2020, the Bucks could have the most unvalued franchise in all of basketball. The key word in that sentence was “could.” Because the Bucks are going to win it in 6 next year, there is no need to worry about being the smallest franchise. At the beginning of the 2011 season, for example, the Dallas Mavericks were in the bottom half of the most powerful clubs. It was estimated that “the value of the Mavericks could rise between $30-45 million in the next year alone” (Garcia). Patrick Rishe, a professor of economics at Webster University said that along with the Mavericks championship trophy, “They'll see ticket prices go up next year, and expect those to be higher over the next few years than they would have been without a championship...They'll be able to negotiate better local media deals, but that may only last one negotiating cycle. They'll see merchandise increase…” (Garcia). When the Mavericks won it all in 2011, no one saw it coming. No one outside of Wisconsin is going to see the Bucks coming until it is too late, and much like the Mavericks, the Bucks organization is going to see higher ticket prices, due to an increase in demand for consumers to watch games. The media will want to talk about the Bucks and advertise with the Bucks which will just bring in more revenue. The amount of merchandise sold will skyrocket, especially with the popularity of the new logo being so high. A championship will see the demand for Bucks tickets, Bucks gear and Bucks advertisements increase, bringing in massive revenues in the years to follow. The Bucks will no longer be the laughing stock franchise of the NBA after next year's championship. Instead, Milwaukee will be on top. Watch out. The Bucks are coming. #Bucksin6

For a video showing other ways the Bucks are growing Milwaukee’s economy, click here

For a video proving the Bucks are destined to win in 6 click here

Works Cited

Badenhausen, Kurt. "The Business of Basketball." Forbes. Forbes Magazine, 20 Jan. 2016. Web. 19 Apr. 2016.

Degollado, Jessie. "NBA Finals Economic Impact in the Millions." KSAT. N.p., 11 June 2013. Web. 19 Apr. 2016.

Garcia, Art. "What an NBA Championships Means to the Dallas Mavericks." ESPN. ESPN Internet Ventures, 24 June 2011. Web. 19 Apr. 2016.

Blue Zones - Hannah Breese

Hannah Breese

AP Econ

Mrs. Straub

19 April 2016

Blue Zones

A blue zone in it’s simplest form is where “people live the longest and more specifically, areas where we have a demographically confirmed, geographically defined, area where people are either reaching age 100 at extraordinary rates, have the highest life expectancy, or the lowest rate of middle age mortality” (Worrall). According to a Danish Twin Study, only about “10% of how long the average person lives is dictated by genes, and the other 90% is dictated by our lifestyle” (TEDEducation). The premise of blue zones is to find the optimal lifestyle of longevity and then come up with a formula for longevity.

In 2012, Dan Buettner a National Geographic Fellow and New York Times bestselling author, producer, public speaker, educator, and explorer set off on a journey to answer a question that has had the world wondering for years (Worrall). That question is why do some people live longer than others? In order to answer this question, Dan was lead to places all around the world. As seen on the map below, places Dan visited included Nicoya-Costa Rica, Sardinia- Italy, Kara- Greece, Okinawa-Japan and Loma Linda-California. His goal was to bring back this new information to the United States in order to promote a healthier lifestyle and ultimately give people the resources to increase their life expectancy. If people in the United States were to adhere to these standards, there would be an economic revolution altering the agriculture industry with an increase in aggregate supply, decreasing aggregate demand in the automobile industry, and medical field as well ultimately resulting in a decrease in per capita income because people would be living longer.

Ultimately, Dan researched, interviewed and condensed all of this information into 9 life lessons. Something he likes to call the “power 9”. Each of these factors was present or being practiced in the countries he studied with a high centenarian population. Below is a listing and description of the common-denominators among centenarians (“Power 9”).

If people were to move naturally, that means more walking less driving. Increased use of public transportation and more biking. People wouldn’t need to invest money into a car when it is way cheaper to buy a bike or use public transportation. Similarly, again hypothetically speaking, if people were to adapt to a primarily plant based diet, and also grow their own food in gardens, the agriculture industry would have an increase in supply and demand.

Moving forward, implementing these strategies, lifestyle changes, whatever they are considered to each one of us, would cause an increase in productivity because a world with less cancer, less heart disease, and less obesity would keep everyone functioning easier and longer. Doctors offices wouldn’t be booked full with unhealthy people and instead people would be succeeding in the world, not immersed and consumed with technology but rather embracing and making the most out their life. The time is now, and the resources are available, make the changes and live a longer life. It will pay off later.

Fast Food Turning Healthy - Annie Collins

Annie Collins

Mrs. Straub

AP Economics

10 April 2016

Fast Food Turning Healthy

As the new year has recently come and gone resolutions are quickly starting to fade.  One of the most popular resolutions is to be healthier which includes eating healthier.  One of the hardest times to eat healthy is when you are on the run and it is so easy just to stop and McDonalds and grab a quick burger to subside your hunger.  More recently different fast food restaurants are beginning to put more healthy alternative options on the menu.  Prior to this, many people who were eating healthy would have to look for a plain side salad to not eat all of the greasy fried foods there were all over the menu (“The Healthiest”).   One con to eating healthy is the rise in nominal prices.  It is widely known that when something has more veggies the price of the item will go up for a few reasons; one, being that it is more expensive for restaurants to use more green ingredients because they often need to import them and two, many people have different lifestyles that require only veggies or no gluten etc.  

Not only are there many healthier options at fast food restaurants but they also have to display the calories count on their menus.  Since this is a new FDA requirement many restaurants have decided to put together different meal types that vary in calories (“U.S.”).  For example Panera Bread has an under 500 cal menu, which utilizes the pick two menu.  A customer can choose from a few different types of soups, sandwiches, salads and broth bowls.  A popular combination is broccoli cheddar soup with a BBQ chicken salad along with a french baguette for only 450 calories.  Also on their website they have a pairing portion for the pick two and when you click “choose for you” random pairings come together that are all under 500 calories (“Our”).  While making their menu cleaner and healthier Panera went through menu costs since prices on their menu increased and customers are beginning to get tired of the prices continuing to increase at Panera.  Although, Panera is not the only company that is changing their menus to have healthier combinations.  

Also, many trainers post different healthy food combinations at fast food restaurants to help their clients.  One of their biggest tips is to get rid of different sauces like mayo on sandwiches.  As well as if you are getting a sandwich eat it open face with only one piece of bread and add extra veggies.  One of the most important concepts of eating “healthier’ fast food is to get the chicken grilled, not fried or crispy.  Getting crispy chicken has a lot of extra fats and oils that are not needed for the sandwich to taste good (“The Healthiest”).   

Eating healthy is a very important way of living and one of the most important ideas of being healthy is eating right.  With restaurants creating healthy portions of their menu, it makes it a little easier to eat healthy all the time.  Also with the FDA requiring restaurants to put the calories counts on their menus it allows customers to really know how much they are eating and what percentage their meal will be of their daily calories.  Eating healthy should not fade away like most New Year’s resolutions, many fast food restaurants are helping people have those options to eat healthier all the time.    

Works Cited

"Our Clean Pairings Menu, All 500 Calories or Less." Clean Pairings Menu. Panera Bread. Web. 10 Apr. 2016.

"The Healthiest Options at Fast-Food Restaurants." Health.com. Health Media Ventures INC. Web. 10 Apr. 2016.

"U.S. Food and Drug Administration." Overview of FDA Labeling Requirements for Restaurants, Similar Retail Food Establishments and Vending Machines. June-July 2015. Web. 10 Apr. 2016.