Q: For sports teams, is substantially raising ticket prices to finance new stadiums worth the risk of alienating long-term fans? | posted by Fast Company staff
I don't think it is at all. With the economy getting worse each day, certain extravagances like season tickets are getting cut from their budgets. While I'm sure there are many fans out there who are still die-hard enough to pay for seat licenses, there are probably many more who won't or can't. To protect their fan base, stadium developers should look for alternative sources of revenue, such as private donors.
Planning for the long run is the only truly ethical management position, so raising prices is probably necessary. At the same time, you cannot take the track of pushing too fast... remeber the lessons from "Good to Great." A steady gain of momentum will eventually get you up to speed and be easier to sustain.
That would depend on the supply/demand curve for that team and its fans.
I would think that there is no point in building bigger stadiums to put less people in, but that's just me.
I don't even have enough money to buy a little league team so the owners of professional teams must know something I don't. Right?
The top three revenue streams for arena based pro sports are in order 1. executive suites 2. seat tickets 3. sponsorship. With two of the top three revenue streams coming from the corporate sector, and most outdated stadiums not having built in many suites it is unfotunately not for the fans as to why these new stadiums are being built.
For the owners and/or cities of the teams a new stadium also gives them the ability to host the premier events (Superbowl, all-star games, etc.) Look at San Diego who was on the sunbelt circuit for the Superbowl but has been told by the NFL that they will NOT be hosting it there until a new stadium is built.
So while the fans may benefit from a new stadium with nicer seats, they are also the ones that have to pay for the owners to be able to maximize their revenue streams.
4 Total
August 28, 2008 at 9:54am
Rachel KingAugust 28, 2008 at 1:12pm
Peter MikkelsenAugust 29, 2008 at 11:07am
David MullingsSeptember 4, 2008 at 11:57am
Colby Fackler