CHAPTER 5 DISCUSSION QUESTIONS1) What is the goal of any facility manager?2) What is the lifeblood of sport & entertainmen...
1) WHAT IS THE GOAL OF ANY FACILITY MANAGER?-TO GENERATE REVENUES THAT EXCEED EXPENSES.-PROJECTING REVENUE &EXPENSES IS ON...
SPORT/ENTERTAINMENT FACILITY REVEUE SOURCES
THE 4 AREAS OF FACILITY RETAIL OPERATIONS1) CONCESIONS 2) PARKING 3) MERCHANDISING 4) TICKETS-TICKET OFFICE IS THE HEART O...
2) WHAT IS THE LIFEBLOOD OF SPORT/ENTERTAINMENT                    FACILITIES?                   TICKETS
2012 NFL ATTENDANCE1) 708,249   2) 643,964   3) 637,236   15) 550,044
2012 MLB ATTENDANCE1) 3,565,718   2) 3,542,406   3) 3,460,280   8) 3,043,003
“STUBHUB TAKES NAMING RIGHTS AT HOME DEPOT”              SBJ: MARCH 4-10               PAGE: COVER
1) Starting June 1, what will be the new name of the Home Depot Center?-STUBHUB CENTER2) What was the value of the agreeme...
6) What is the name of the entertainment district across the street from the StaplesCenter?-L.A. LIVE7) Where is StubHub b...
“MOVING IN OUTFIELD FENCES GIVES PADRES ROOM FOR NEW SEATING”                       SBJ: MARCH 4-10                       ...
1) The Padres moved the outfield fences how many feet closer to home plate?-11 FEET2) What is being installed just behind ...
3) WHAT IS THE MOST IMPORTANT MARKETING CONCEPT      THAT ANY BUSINESS SHOULD REMEMBER?THE MOST DIFFICULT & EXPENSIVE THIN...
“SEASON-TICKET HOLDERS SNAP UP HEAT’S NEW 3-YEAR PLANS”                   SBJ: MARCH 11-17                        PAGE: 4
1) Besides the Heat, how many other franchises currently offer a 3-year season-ticket renewal planacross all season-ticket...
6) Along with having a star-laden team, how else has Miami increased demand forHeat season tickets?-LIMITING THE SEASONLON...
TICKETS AS REVENUE
4) WHAT ARE MINI-PLANS?A SERIES OF TICKETED EVENTS DURING THE SEASON.
ESCALATOR APPROACH-A SALES APPROACH THATATTEMPTS TO MOVE ACUSTOMER UP THE “TICKETESCALATOR” ONE STEP AT ATIME (SINGLE GAME...
VARIABLE & DYNAMIC TICKET PRICING-TICKET SELLING STRATEGIES THAT USE ADVANCED COMPUTERPROGRAMMING TO MAKE PRICE ADJUSTMENT...
5) WHAT REASONS ARE A SEASON TICKET BENEFICIAL TO THE                   ORGANIZATION?-USUALLY PURCHASED PRIOR TO THE START...
RED SOX SEASON TICKET WAITING LIST-CURRENTLY OVER 7,000 PEOPLE ON THE RED SOX SEASON TICKETWAITING LIST.-THE RENEWAL RATE:...
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Chapter 5

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Transcript of "Chapter 5"

  1. 1. CHAPTER 5 DISCUSSION QUESTIONS1) What is the goal of any facility manager?2) What is the lifeblood of sport & entertainment facilities?3) What is the most important marketing concept that any business shouldremember?4) What are mini-plans?5) What reasons are a season ticket beneficial to the organization?6) What does the underground luxury suites at The Palace of Auburn Hills lack?7) What do club seats offer the patron?8) What is often the most important revenue source for many facilities?9) What is a per cap analysis?10) What do some teams charge fans in addition to the fee for entering the parkinglot?11) What is one of the most important revenue sources for most facilities?12) One of the critical components of maximizing the answer to Question 11 is topolice the facility for illegal sales of what?13) What can sport & entertainment facilities provide a sponsor access to?14) What was the company, team, & year the first time a company agreed to pay tohave its name attached to a professional sport facility?15) What was the issue with SF Candlestick Park agreeing to naming rights?16) What was the issue with the Houston Astros selling the naming rights to itsstadium?
  2. 2. 1) WHAT IS THE GOAL OF ANY FACILITY MANAGER?-TO GENERATE REVENUES THAT EXCEED EXPENSES.-PROJECTING REVENUE &EXPENSES IS ONE OF THEMOST IMPORTANT ASPECTSOF MANAGING ASPORT/ENTERTAINMENTFACILITY.
  3. 3. SPORT/ENTERTAINMENT FACILITY REVEUE SOURCES
  4. 4. THE 4 AREAS OF FACILITY RETAIL OPERATIONS1) CONCESIONS 2) PARKING 3) MERCHANDISING 4) TICKETS-TICKET OFFICE IS THE HEART OF SPORTS ENTERPRISE & KEYTO FINANCIAL SUCCESS.
  5. 5. 2) WHAT IS THE LIFEBLOOD OF SPORT/ENTERTAINMENT FACILITIES? TICKETS
  6. 6. 2012 NFL ATTENDANCE1) 708,249 2) 643,964 3) 637,236 15) 550,044
  7. 7. 2012 MLB ATTENDANCE1) 3,565,718 2) 3,542,406 3) 3,460,280 8) 3,043,003
  8. 8. “STUBHUB TAKES NAMING RIGHTS AT HOME DEPOT” SBJ: MARCH 4-10 PAGE: COVER
  9. 9. 1) Starting June 1, what will be the new name of the Home Depot Center?-STUBHUB CENTER2) What was the value of the agreement that Home Depot signed in 2003?-$70 MILLION OVER 10 YEARS3) What 2 MLS teams play home games at the stadium?-LOS ANGELES GALAXY & CHIVAS USA4) Who is StubHubs parent firm?-EBAY5) Announced in November, StubHub became the official ticket reseller for all venuesowned by what company?-AEG GLOBAL PARTNERSHIPS
  10. 10. 6) What is the name of the entertainment district across the street from the StaplesCenter?-L.A. LIVE7) Where is StubHub based?-SAN FRANCISCO, CA8) What company did StubHub hire to help develop concepts related to activation of itssponsorship?-CAA SPORTS CONSULTING9) Who was the first ticketing company to put its name on a major league sports facility?-STUBHUB10) What MLB teams pulled out of the StubHub-MLB deal when it was renewed inDecember?-YANKEES & ANGELS
  11. 11. “MOVING IN OUTFIELD FENCES GIVES PADRES ROOM FOR NEW SEATING” SBJ: MARCH 4-10 PAGE: 13
  12. 12. 1) The Padres moved the outfield fences how many feet closer to home plate?-11 FEET2) What is being installed just behind the right-field fence to fill the space left by the shift?-14 4-SEAT TABLES & 7 2-SEAT HIGH-TOP TABLES & STANDING ROOM FOR 10 PEOPLE3) What is the name of the seating vendor that was hired to install the tables?-4TOPPS4) How will be Padres be able to generate revenue with the new right-field wall?-LED DISPLAY: A 105-FOOT-LONG, 7-FOOT HIGH SLECTRONIC SIGN WITH A 14-FOOT-LONG STRIP CARVED OUT FOR LIVEVIDEO5) What companies teamed up to produce the 105-foot-long, 7-foot-high electronic sign?-DAKTRONICS & SONY6) The new 6 boxes behind the Home Plate Club will be sold as all-inclusive season-ticket packages & cover the cost of what?-FOOD, BEER & WINE, IN-SEAT SERVICE, 1 PARKING PASS, & ACCESS TO THE OMNI PREMIER CLUB7) What company owns the naming rights to the Padres stadium?-PETCO
  13. 13. 3) WHAT IS THE MOST IMPORTANT MARKETING CONCEPT THAT ANY BUSINESS SHOULD REMEMBER?THE MOST DIFFICULT & EXPENSIVE THING TO DO IS MAKE THE FIRST SALE.-A CONSIDERABLE INVESTMENT OF TIME & MONEY ISREQUIRED TO TO GET A CONSUMER TO OVERCOMEINITIAL RESISTANCE TO BUYING INTO APRODUCT/SERVICE, BUT…-ON AVERAGE IT COSTS 5X MORE TO GET A NEWCUSTOMER THAN IT DOES TO KEEP AN EXISTING ONE.-IF CUSTOMERS HAVE A POSITIVE EXPERIENCE DURINGTHEIR FIRST VISIT THEY ARE MUCH MORE LIKELY TO BEREPEAT CUSTOMERS.
  14. 14. “SEASON-TICKET HOLDERS SNAP UP HEAT’S NEW 3-YEAR PLANS” SBJ: MARCH 11-17 PAGE: 4
  15. 15. 1) Besides the Heat, how many other franchises currently offer a 3-year season-ticket renewal planacross all season-ticket price points?-NONE2) What does the 3-year season-ticket renewal deal provide the Heat?-ASSURED TICKET REVENUE3) What does the deal lessen for the Heat?-THE SEASON-TICKET ADMINISTRATIVE BURDEN ON THE CLUB4) How do the ticket holders benefit from the long-term deal?-LOCKS IN RATES COUNTERING ANY PRICE INCREASES THAT MIGHT COME DOWN THE LINE(PLAYOFF TICKETS AT REGULAR-SEASON PRICES)5) The Heat also sold 3-year season-ticket plans after winning its first NBA title in 2006. What wasdifferent with that plan offering than the current deal?-NO PRICE INCREASE INCREASES FOR THE TICKETS ACROSS THE SPAN OF THE DEAL
  16. 16. 6) Along with having a star-laden team, how else has Miami increased demand forHeat season tickets?-LIMITING THE SEASONLONG INVENTORY THAT’S AVAILABLE FOR THE CLUB7) The Heat hold back much of the nightly ticket inventory to maximize revenuethrough what 2 types of ticket-pricing efforts?-VARIABLE & DYNAMIC PRICING8) Heading into this season, how many teams were projected to have sales of atleast 10,000 full-season equivalent tickets?-159) What NBA team offers a 3-year plan for their higher-end, "all-access" seasonseats?-BROOKLYN NETS
  17. 17. TICKETS AS REVENUE
  18. 18. 4) WHAT ARE MINI-PLANS?A SERIES OF TICKETED EVENTS DURING THE SEASON.
  19. 19. ESCALATOR APPROACH-A SALES APPROACH THATATTEMPTS TO MOVE ACUSTOMER UP THE “TICKETESCALATOR” ONE STEP AT ATIME (SINGLE GAME TO MINI-PACKS TO FULL SEASON).
  20. 20. VARIABLE & DYNAMIC TICKET PRICING-TICKET SELLING STRATEGIES THAT USE ADVANCED COMPUTERPROGRAMMING TO MAKE PRICE ADJUSTMENTS BASED ON CERTAINDEMAND FACTORS (DAY OF THE WEEK, MONTH, OPPONENT, HOWWELL THE TEAM IS PLAYING, ETC.)-VARIABLE: PRICES ARE SET AT THE BEGINNING OF THE SEASON-DYNAMIC: PRICES ARE ADJUSTED DURING THE SEASON, SOMETIMESAS LATE AS THE DAY OF THE GAME-MORE THAN 1/2 OF MLB TEAMS UTILIZE DYNAMIC PRICING
  21. 21. 5) WHAT REASONS ARE A SEASON TICKET BENEFICIAL TO THE ORGANIZATION?-USUALLY PURCHASED PRIOR TO THE START OF THE SEASON SO THEORGANIZATION RECEIVES ALL OF THE MONEY FOR THE TICKETSALES PRIOR TO PAYING EXPENSES FOR THE GAMES.-SOLD FOR THE ENTIRE SEASON: THE SALES STAFF DOES NOT NEEDTO WORRY ABOUT SELLING THE SEAT-ASSIST THE GAME OPERATIONS STAFF TO PREPARE FORANTICIAPTED CROWDS
  22. 22. RED SOX SEASON TICKET WAITING LIST-CURRENTLY OVER 7,000 PEOPLE ON THE RED SOX SEASON TICKETWAITING LIST.-THE RENEWAL RATE: ABOUT 98%, AMONG THE HIGHEST IN MLB.-AT THAT RATE, ABOUT 400 RED SOX SEASON TICKETS ARE NOTRENEWED EACH YEAR.-SINCE MOST PEOPLE BUY SEASON TICKETS IN PAIRS, ABOUT 200FANS ADVANCE THROUGH THE WAITING LIST YEARLY.-THAT MEANS IT COULD TAKE UP TO 20 YEARS FOR A PERSON ONTHE WAITING LIST-CHICAGO CUBS HAVE LARGEST SEASON TICKET WAITING LIST INMLB AT ABOUT 120,000.

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