A general view of Pac Bell Park during the XFL game between the Los Angeles Xtreme and San Francisco Demons in San Francisco, California. The Demons won 16-15. (Tom Hauck/ALLSPORT)
A new sustainable revenue source
Shaub said that from a financial standpoint, a league like the XFL is far more supportable in 2020 than it was in 2001 because a broad spectrum of revenue sources exist thanks to online retail and streaming technology.
“Actual attendance may not be as critical as in 2001, but playing in small enough locations can give an impression that there is a strong fan base, as in the Arena Football League, but online sales have exploded and online promotion could be relentless at a manageable cost,” Shaub said. “You don’t need jerseys at JC Penney (as in 2001) or even at Academy Sports and Outdoors. You just need to reach your fan base online. Some underdog apparel company like Under Armour will likely arise to spearhead the efforts, unless one of the big apparel companies jumps in first.”
Shaub added that viewership can potentially develop through a number of outlets thanks to streaming and an expansion in the number of cable platforms.
“Extremely cheap subscriptions or a shoestring budget cable channel may be enough to encourage viewership without having to use one of the major networks,” Shaub said. “TruTV broadcasting NCAA tournament games is one example that has evolved in recent years. And social media will have an impact through extensive promotion and, perhaps, as a viewing outlet.”
Shaub is an accounting professor who thinks and writes at the intersection of business, ethics, and sports. He teaches Accounting Ethics and Auditing at Mays Business School and runs the five-year Accounting program, the Professional Program in Accounting.
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Media contact: Kelli Levey Reynolds, kreynolds@mays.tamu.edu, (979) 845-3167.