Nathan Torres and MychalZito Pricing in Sports: Doing it the Right Way
Sports Pricing Facts Sports Industry Revenue (2009) – $410.6B MLB (2009) – $6.2B NFL (2009) – $6.0B Average Ticket Price MLB (2010) - $22.21 NFL (2009) - $75 Media Coverage Revenue NFL (2009) CBS - $7.6B NBC, Fox and ESPN - combined paid each team $94 million MLB (2006) Fox and Turner - $3B
Effects of the Recession in Sports Attendance NFL Average 2008 - 68,018 Average 2009 - 67,849 BUT - Ticket and concession revenue increased 6% last season, kicking in an average of $59 million per team. MLB Average 2008 - 32,516 Average 2009 - 30,298
National Football League Pre Recession Pricing 2007 to 2008 ticket price increase – 7.3% Average cost of family of four to attend a game* - $396.36 Affects 2007 to 2008 attendance drop – 2.6% How to react?
Reacting to the Recession Fan First Approach “We're going to have to work harder, be more creative and more responsive, understand what our customers are going through” – Roger Goodell, Commissioner Putting Into Action 24 out of the 32 teams in the NFL froze there ticket prices NFL Ticket Price Increase – 4%* * - would be 0.6% increase without the new Dallas Cowboys stadium which resulted in a 90% ticket increase Results…
Major League Baseball Pre Recession Pricing 2008 to 2009 ticket price increase – 1.5% Affects 2008 to 2009 attendance drop – 6.9% Currently in the 2010 season, several teams have experienced record lows in attendance: Toronto Blue Jays had the worst showing at 10,314 How to react?
Reacting to the Recession Even though 19 teams have either lowered or kept prices at their 2009 rates, 11 teams have raised ticket prices. Contributing to the 1.5% are the Minnesota Twins who opened a new stadium this season. Their ticket prices rose 45%. MLB Commissioner not worried: “Obviously, I've stated how well we've done," commissioner Bud Selig said at the end of 2009, "I'll have plenty to say after I've seen the final numbers.“ Results… Video
How To Apply… Small Market Sports - Spokane Less is More Shock, Chiefs, Indians Fan First Approach Long Term Relations (Not a quick buck)