Sports Organizations Undergoing Crisis Situations
It is common knowledge that any organization during its lifetime will face problems and crises. It is also fairly well known that professional sports organizations are now more business-oriented than in earlier times. They now have a lot of financial stakes and have to manage their finances and their bottom lines for survival. Two instances are given where a minor crisis had happened to two sports organizations.
One was the National Basketball Association (NBA). Players are famous people and hence can become quite moody and eccentric depending on individual characteristics. Sometimes they may resort to unruly and childish behavior in public. Three players of a well-known NBA club had behaved badly in the 2007 season and should have been suspended. But the association was having a series of games in California where the players belonged and were popular. Banning the players would have brought down ticket sales and consequently its revenues.
Not banning them will be a sign for some players that bad behavior will be seen lightly by the NBA. This will lead to a crisis situation if left unchecked, and the public image of the association and players will come down. But the association took the initiative and gave strict guidelines for player behavior from the next season onwards, thereby avoiding a future crisis. The Formula 1 Association is also facing a possible financial crisis with the sponsorship levels from companies coming down. It is also an association that is expensive to run. Research and development, transportation costs, etc., are very high in this area. The only option is to see that tight control is maintained over expenses. Moreover, a serious attempt to find strong and long terms sponsors is needed.