Phoenix is an overextended sports market?
Phoenix ranked number eight out of the 20 most overextended sports markets last year, a study said.
According to Phoenix Business Journal, Phoenix has an insufficient income base to support four major-league teams.
The Phoenix area would need total personal income (TPI) of $193.8 billion to provide an adequate base for its five existing teams, according to the study. (TPI is the sum of all money earned by all residents in a given year.) But Phoenix’s actual TPI is $152.8 billion, yielding an income deficit of $41 billion.
While the shortfall does not mean that a team will move or fold, it does mean that Phoenix-area teams can expect a fluctuation in both revenue and attendance numbers.
Phoenix may have a lower TPI, but other sports cities like Cleveland and Pittsburgh have a TPI deficit in excess of $50 billion.