Wednesday, April 18, 2012
Economics is not the first thought that comes to minds of millions of individuals who enjoy the great American pastime. However, economics has become the talk for analysts at ConvergEX Group. Their analysts determined that a correlation exists between consumer confidence and attendance, which is good news for investors if attendance increases by 3 to 5%, as predicted by Commissioner Bud Selig, in the upcoming season. Analysts from ConvergEx argue that baseball attendance has mirrored consumer confidence in the past too. Attendance declined at the beginning of the recent recession in 2007 and has steadily increased since 2008.
Based upon the predicted modest percentage increase in attendance during this current season, it is likely that the economy will also enjoy a modest recovery. What is the reason for this correlation? According to CNBC.com, it is likely based upon the demographics of the average baseball attendee. Most are upper-middle class, and are likely members of what one would consider the average American household. Therefore, how the average American feels about the economy is actually how the average baseball fan feels about the economy. Let's just hope that more and more Americans will decide to go out to the old ballgame this summer.
Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.