Sport Management – The Houston Oilers

Sport Management – The Houston Oilers

There are several common reasons why a sports team might be relocated to a new city, and the Houston Oilers provide a useful example of some of these factors. One major reason for team relocations is financial challenges. For example, a team may need help to generate enough revenue to remain viable in their current city. In the case of the Houston Oilers, the team’s owner, Bud Adams could not secure funding for a new stadium in Houston, which he believed was necessary to keep the team competitive and profitable (Davies, 2016). In addition, stadium concerns can also be a reason for relocation. In the case of the Oilers, their previous home field, the Astrodome, was an aging facility that was no longer considered state-of-the-art. Adams believed he needed a new stadium to increase revenue and keep up with other teams in the league. A city or region’s size and growth potential can also be a factor in team relocations. In the case of the Oilers, Nashville, Tennessee, was seen as a more promising market than Houston (Davies, 2016). The city had a larger population, was experiencing significant growth, and had a strong tradition of supporting college football.

Additionally, the political environment in a city or state can also play a role in a team’s decision to relocate. For example, Adams may have felt that he needed more support from local officials or politicians in Houston, which made it more difficult to secure funding for a new stadium. Conversely, Nashville officials supported the team’s efforts to relocate and build a new stadium (Davies, 2016). Therefore, the decision to relocate a sports team is typically driven by a combination of these and other factors. In the case of the Houston Oilers, the team was relocated to Tennessee in 1997 primarily due to financial reasons and a desire for a new stadium (Davies, 2016). The team’s owner at the time, Bud Adams, needed help to secure funding for a new stadium in Houston and believed he could make more money in a larger market like Nashville.

Moreover, team relocation has a few primary pros and cons for various stakeholders.

Team Owner

There are several pros for a team owner when a team relocates, including the ability to tap into new and potentially larger markets. Second, the team owner will have the opportunity to secure a better stadium deal or a more favorable tax environment (Pittz et al., 2021). Finally, the team owner will have the potential for increased revenue and profitability. The cons of team relocations include the team owner’s risk of upsetting existing fans and damaging team loyalty. Second, the team owner will incur the cost of relocating the team, including potential legal fees and penalties. Finally, the team owner will potentially have backlash from local media and politicians.

Local and National Media

Several pros were highlighted in relation to local and national media, like the potential for increased coverage and exposure in the new market for the media. Second, the media would have the opportunity to cover a new team with a different story or history. Also, the media would have the potential for increased ad revenue or readership. However, some cons were also observed, including the loss of existing team coverage and leadership for the media. Also, the media would upset the existing fans and potentially damage relationships with other teams and leagues. In addition, there may be negative coverage of the relocation and its impact on the community.

Players

Several pros were observed on the players’ side, which included having the opportunity to play in a new city with a different atmosphere and culture. In addition, the players can have increased salaries and endorsement opportunities (Pittz et al., 2021). Also, the players can join more competitive teams in the new market. However, there were several cons, including an upheaval of personal and professional life for the players, relocation, and potential loss of existing relationships. In addition, the players would face uncertainty about the team’s future and the potential for another relocation in the future. Finally, the players would face the risk of upsetting fans and damaging their reputations.

Fans

There were also some pros for fans, including the opportunity to support a new team with a different story or history. Also, there would be the potential for increased team success and playoff appearances. In addition, the teams would have the chance to attend games in a new stadium or arena with different amenities. However, fans would suffer the loss of an existing team and its history and traditions, and there would be disruption to the community, like loss of jobs and revenue. Finally, the fans risk losing a sense of community and identity associated with the team.

Team Merchandizers

The pros included the potential for increased sales of new team merchandise and apparel. In addition, there is an opportunity to tap into a new market and increase revenue. Another pro included the chance to market and sell products associated with a new team identity. However, a few cons were noted, which included the loss of existing team merchandise sales and revenue. Also, there was a risk of upsetting customers who may be reluctant to buy new team merchandise. Finally, there was a potential for backlash from the existing team and its fans, who may see the relocation as a betrayal.

Current and New City

The pros might include the increased revenue from a new team like ticket sales, concessions, and other related spending. Also, there would be an opportunity to build or improve a new stadium or arena. In addition, there would be a chance to market and promote a new team identity and culture. However, some cons included disruption to the community, like the potential loss of jobs and revenue associated with the existing team. Finally, there might be a potential for political backlash or negative media coverage and the risk of upsetting existing fans and damaging community relationships.

If I were a team owner wanting to move my team, I would recommend that my team be relocated with notice. Relocating a sports team is a significant decision that affects the team, its fans, and the community. Moving a team without any notice, especially in the middle of the night, can cause a lot of frustration, anger, and disappointment among fans and the community (Humphreys, 2019). They may feel betrayed and angry towards the team owner and take a long time to recover from this decision. In addition, announcing the team’s decision to move before the actual move can give fans and the community time to process the news and say goodbye to their team. It allows them to appreciate the team’s accomplishments and express their gratitude for the team’s presence in the community (Humphreys, 2019). Additionally, the owner can explain their decision and provide reasons for the move, which can help fans and the community understand the situation better. Therefore, while it may seem easier to move the team secretly, announcing the decision beforehand shows respect to the fans and the community that has supported the team for years. This can minimize the negative effects of the move and show that the owner is sensitive to the fans and the community’s feelings.

References

Davies, R. O. (2016).  Sports in American life: A history. John Wiley & Sons.

Humphreys, B. R. (2019). Should the construction of new professional sports facilities be subsidized? Journal of Policy Analysis and Management, 38(1), 264–270.

Pittz, T., Bendickson, J. S., Cowden, B. J., & Davis, P. E. (2021). Sport business models: a stakeholder optimization approach. Journal of Small Business and Enterprise Development, 28(1), 134-147.

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Review Chapter 12, pages 273-277. After reading these accounts of professional teams being relocated to a different city, please explain in your own words:

Typical reasons why a team would be relocated (Houston Oilers)
A few of the primary pros and cons of team relocation about each of the following:

• Team owner
• Local and national media
• Players
• Fans
• Team merchandizers/stores
• Current and new city

If you were a team owner wanting to relocate your team, do you think it would be better to move your team without notice in the middle of the night, or would you feel you “owed” it to your city and fans to announce your decision before the move? Why?