Sporting events in the past, have been seen as a form of entertainment, competing with other forms of entertainment. But according to the Wall Street Journal, WSJ Sports Econ there has been a visible change caused by our economy. According to Brett Yormark, CEO of the New Jersey Nets (NBA), "We're not just competing for people's entertainment dollars anymore... We're going up against milk and orange juice."
If this statement is true, the traditional forms of entertainment that once competed with sporting events are not seen as substitute goods any more due to the decrease in income levels. Not only do we see a shift of the demand curve to the left but also a change in the substitute goods that compete with sporting events. This would suggest that utility changes with a change in income level.
Many people can still see sporting events on TV or on the internet. This could cause new behaviors for how we experience entertainment and keep the demand curve from returning to its original position.
Should those involved in the Sporting Event Industry expect a full return of consumers or change their traditional view on sporting events?