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Pricing Tickets for a Sport Event (2008)Presentation Transcript
Ticket Sales and Operations
Examines the issues that sports managers face with respect to
selling and pricing tickets for sporting events.
It is estimated that U.S. consumers spend $12 billion a year on
tickets for sporting events
Ticket sales are the biggest sources of revenue for minor league
baseball who rely on their fans as well as for Div. I collegiate
In 2002, Michigan and Ohio State earned approximately $28
million for each athletic department from ticket sales alone.
From 1991-2000, ticket prices for all the major leagues grew at
an annual rate of 8.4%, so that gate receipts more than doubled
over that time period.
During 2001-2002 attendance among the four major sports
leagues diminished due to a slowing economy and increased
competition from the entertainment industry.
Intro/ Admission Pricing
The increase in ticket prices make it more likely for fans to
substitute attending games for more less expensive
The pricing approach of most sports teams is cost oriented
In 2001, 23 MLB teams increased ticket prices and of those 23
teams 15 lost attendance during that season.
With the large dependence on football revenues, most schools
competing in the larger conferences (Big 12, Big 10, SEC, PAC
10) have developed “priority seating” programs. This ties
preferred seating locations within the stadium to extra donations
to that schools athletic department. This was first introduced in
the 1980’s, and has grown over the years to the point where 90%
of Div. IA schools currently employ the concept.
These “privileged seats” may cost a season ticket holder
anywhere from $5,000-$10,000 for two season tickets.
Tactics for Improving Ticket Sales/
web-based ticketing sales
Ticket sales are used for many different things:
Revenue Production (large sport businesses)
Non-monetary outcomes – building community support/
involvement (small colleges)
Flexible Ticket Packaging
WEB BASED TICKET SALES
Main point – All parties benefit from a web-based ticket program
Organizing Ticket Sales
Types of Tickets:
Tickets bought for complete season
Tickets bought only for part of a season/ certain # amount
Ticket per game
“Comps”/ group or individual tickets at no cost to consumer
Specific tickets at discounted or other different regulations
Different start dates for different teams
depending on organization
Should have all tickets printed, seats
assigned, orders recorded, etc. before
Organizations should take advantage of new
additions, fan enthusiasm, changes in team,
etc. to sell more tickets
Methods of Selling
Follow-up Phone Calls
Once a season starts, ticket offices know
what tickets they have left over. They then
sell them by:
The sophistication of computerization in ticket offices has increased over the
past 15 years.
For every Sport Management major they should have a personal computer.
Because with a personal computer, even a small sport organization can
purchase relatively inexpensive.
Tickets may be printed by an outside company or by the ticket office.
Accounting Procedures for Ticket Revenue
The ticket office receives payments throughout the year and has a system to
maintain accurate records of receipts, deposits, and accounts receivable.
Fans order tickets without immediate pay.
The ticket office maintains records to account for every ticket.
Many preparations are done before the ticket windows are opened.
Although game day is difficult for the ticket office, there are strategies to help
the operation run smoothly.
The job is not done yet.
The office checks the ticket sales and receipts for each seller to make sure
his or hers records are accurate.
Consumers in the United States spend almost 12
billion dollars a year buying tickets to sporting
Economic Recession of the early 20’s
Cost of ticket