As the economy slides toward a possible recession, the Washington, D.C., region is the leading edge of the troubles due to the Trump administration’s attempts to rapidly downsize the federal workforce.
For pro sports teams, the most immediate threat is a drop-off in consumer spending, both as the result of actual job cuts and the broad potential threat faced by virtually any federal worker and many contractors — one team has already seen some evidence of that in its season-ticket base. But over the longer term, a smaller federal government could challenge premium and sponsorship sales to contractors and other private-sector businesses, and tariffs could deal a body blow to the international firms that have chosen the region for its government access.
No Washington team would address the subject on the record, but several current and former executives said the teams are concerned, at least in the short term. The region saw more job losses in the first quarter than it did in the first quarter of 2020, when the COVID pandemic shuffled the global economy in a matter of weeks, according to the Washington Post. Unemployment in the region was up 14.5% in February year over year, according to a FFXNow analysis of labor department data.
Teams that rely the most on single-game sales are the most immediately threatened, said one former D.C. area executive, with fans less likely to abandon major commitments such as season tickets. However, a handful of season-ticket holders at one club recently asked for grace in their payments, citing recent job cuts, a source said.
On the B2B front, the impact is likely to be less severe and take longer to develop. As a rule, government contractors are not major drivers of sponsorships because they maintain a low profile to begin with, and cannot legally entertain government employees with perks such as suites. But, several sources said, those that do spend on sports will probably seek to lower their public profiles further to avoid scrutiny, and may seek to pare back activations and premium assets, and delay extensions.
Leaders in Washington sports remain optimistic for the long term. The region is among the wealthiest metropolitan areas in the country, and sports have proved resilient in all but the most severe economic shocks. “The DMV region is an undeniable economic powerhouse,” wrote Monumental Sports founder and Chairman Ted Leonsis in a Linkedin post from late March.
But the speed, unpredictability and confusion surrounding the Trump administration’s moves on the government have created a crippling uncertainty.
