Is the AVP Recession Proof?

It’s unavoidable. Every time I turn on the TV I get more bad news – businesses are laying off or closing down, homes are in foreclosure and credit is non-existent. With most corporations tightening their belts for 2009, sports sponsorships are bound to be next on the chopping block.

I can’t help but wonder how this economic downturn will affect the AVP. The league has long been plagued by financial instability, fighting to become profitable in a crowded sports market. Now Crocs, the tour’s title sponsor, is struggling as well. The shoe company’s stock, once as high as $75 per share, hit a low of .79 recently and is now hovering just over $1.20. Affiliation with the AVP has arguably increased the company’s visibility and name-recognition, but the jury is still out on whether sports sponsorships in general help or hurt the bottom line in the long term.

As of March, there is a new CEO at Crocs. Despite recent layoffs, the company can apparently afford to pay him $850,000 annually with a $350,000 signing bonus. But will the new blood value the company’s three-year affiliation with the AVP or will he see it as fat to trim off the budget?

For the first time in years, the tour can’t count on its biggest draw, marquis players Kerri Walsh and Misty May-Treanor. Kerri is expecting her first child this spring and Misty is recovering from a ruptured Achilles that she injured on Dancing with the Stars. Sure, the women’s side will now enjoy more of a suspense factor when it comes to the eventual winners, but will the fans still come out if the top team is not there?

The AVP does have value on its side. For a mere $20 a seat, fans can get close to the action in the main stadium and enjoy a day of entertainment for the whole family. If they don’t mind standing around the outer courts, spectators can watch all the best players for free. Fans will be hard-pressed to find a deal like that in any other pro sport. Summer travel is expected to be down significantly this year so a low-cost tour that stops in your backyard might not be such a bad way to spend a day.

Regardless, AVP CEO Leonard Armato has his work cut out for him. Sponsorship downturns have doomed the league before, but it has always managed to rise out of the ashes. Here’s hoping beach volleyball can pull it off one more time.