1. CHAPTER 5 DISCUSSION QUESTIONS
1) 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 should
remember?
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 parking
lot?
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 to
police 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 to
have 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 its
stadium?
2. 1) WHAT IS THE GOAL OF ANY FACILITY MANAGER?
-TO GENERATE REVENUES THAT EXCEED EXPENSES.
-PROJECTING REVENUE &
EXPENSES IS ONE OF THE
MOST IMPORTANT ASPECTS
OF MANAGING A
SPORT/ENTERTAINMENT
FACILITY.
4. THE 4 AREAS OF FACILITY RETAIL OPERATIONS
1) CONCESIONS 2) PARKING 3) MERCHANDISING 4) TICKETS
-TICKET OFFICE IS THE HEART OF SPORTS ENTERPRISE & KEY
TO FINANCIAL SUCCESS.
5. 2) WHAT IS THE LIFEBLOOD OF SPORT/ENTERTAINMENT
FACILITIES?
TICKETS
9. 1) Starting June 1, what will be the new name of the Home Depot Center?
-STUBHUB CENTER
2) What was the value of the agreement that Home Depot signed in 2003?
-$70 MILLION OVER 10 YEARS
3) What 2 MLS teams play home games at the stadium?
-LOS ANGELES GALAXY & CHIVAS USA
4) Who is StubHub's parent firm?
-EBAY
5) Announced in November, StubHub became the official ticket reseller for all venues
owned by what company?
-AEG GLOBAL PARTNERSHIPS
10. 6) What is the name of the entertainment district across the street from the Staples
Center?
-L.A. LIVE
7) Where is StubHub based?
-SAN FRANCISCO, CA
8) What company did StubHub hire to help develop concepts related to activation of its
sponsorship?
-CAA SPORTS CONSULTING
9) Who was the first ticketing company to put its name on a major league sports facility?
-STUBHUB
10) What MLB teams pulled out of the StubHub-MLB deal when it was renewed in
December?
-YANKEES & ANGELS
11. “MOVING IN OUTFIELD FENCES GIVES PADRES ROOM FOR NEW SEATING”
SBJ: MARCH 4-10
PAGE: 13
12. 1) The Padres moved the outfield fences how many feet closer to home plate?
-11 FEET
2) 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 PEOPLE
3) What is the name of the seating vendor that was hired to install the tables?
-4TOPPS
4) 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 LIVE
VIDEO
5) What companies teamed up to produce the 105-foot-long, 7-foot-high electronic sign?
-DAKTRONICS & SONY
6) 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 CLUB
7) What company owns the naming rights to the Padres stadium?
-PETCO
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 IS
REQUIRED TO TO GET A CONSUMER TO OVERCOME
INITIAL RESISTANCE TO BUYING INTO A
PRODUCT/SERVICE, BUT…
-ON AVERAGE IT COSTS 5X MORE TO GET A NEW
CUSTOMER THAN IT DOES TO KEEP AN EXISTING ONE.
-IF CUSTOMERS HAVE A POSITIVE EXPERIENCE DURING
THEIR FIRST VISIT THEY ARE MUCH MORE LIKELY TO BE
REPEAT CUSTOMERS.
15. 1) Besides the Heat, how many other franchises currently offer a 3-year season-ticket renewal plan
across all season-ticket price points?
-NONE
2) What does the 3-year season-ticket renewal deal provide the Heat?
-ASSURED TICKET REVENUE
3) What does the deal lessen for the Heat?
-THE SEASON-TICKET ADMINISTRATIVE BURDEN ON THE CLUB
4) 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 was
different with that plan offering than the current deal?
-NO PRICE INCREASE INCREASES FOR THE TICKETS ACROSS THE SPAN OF THE DEAL
16. 6) Along with having a star-laden team, how else has Miami increased demand for
Heat season tickets?
-LIMITING THE SEASONLONG INVENTORY THAT’S AVAILABLE FOR THE CLUB
7) The Heat hold back much of the nightly ticket inventory to maximize revenue
through what 2 types of ticket-pricing efforts?
-VARIABLE & DYNAMIC PRICING
8) Heading into this season, how many teams were projected to have sales of at
least 10,000 full-season equivalent tickets?
-15
9) What NBA team offers a 3-year plan for their higher-end, "all-access" season
seats?
-BROOKLYN NETS
18. 4) WHAT ARE MINI-PLANS?
A SERIES OF TICKETED EVENTS DURING THE SEASON.
19. ESCALATOR APPROACH
-A SALES APPROACH THAT
ATTEMPTS TO MOVE A
CUSTOMER UP THE “TICKET
ESCALATOR” ONE STEP AT A
TIME (SINGLE GAME TO MINI-
PACKS TO FULL SEASON).
20. VARIABLE & DYNAMIC TICKET PRICING
-TICKET SELLING STRATEGIES THAT USE ADVANCED COMPUTER
PROGRAMMING TO MAKE PRICE ADJUSTMENTS BASED ON CERTAIN
DEMAND FACTORS (DAY OF THE WEEK, MONTH, OPPONENT, HOW
WELL THE TEAM IS PLAYING, ETC.)
-VARIABLE: PRICES ARE SET AT THE BEGINNING OF THE SEASON
-DYNAMIC: PRICES ARE ADJUSTED DURING THE SEASON, SOMETIMES
AS LATE AS THE DAY OF THE GAME
-MORE THAN 1/2 OF MLB TEAMS UTILIZE DYNAMIC PRICING
21. 5) WHAT REASONS ARE A SEASON TICKET BENEFICIAL TO THE
ORGANIZATION?
-USUALLY PURCHASED PRIOR TO THE START OF THE SEASON SO THE
ORGANIZATION RECEIVES ALL OF THE MONEY FOR THE TICKET
SALES PRIOR TO PAYING EXPENSES FOR THE GAMES.
-SOLD FOR THE ENTIRE SEASON: THE SALES STAFF DOES NOT NEED
TO WORRY ABOUT SELLING THE SEAT
-ASSIST THE GAME OPERATIONS STAFF TO PREPARE FOR
ANTICIAPTED CROWDS
22. RED SOX SEASON TICKET WAITING LIST
-CURRENTLY OVER 7,000 PEOPLE ON THE RED SOX SEASON TICKET
WAITING LIST.
-THE RENEWAL RATE: ABOUT 98%, AMONG THE HIGHEST IN MLB.
-AT THAT RATE, ABOUT 400 RED SOX SEASON TICKETS ARE NOT
RENEWED EACH YEAR.
-SINCE MOST PEOPLE BUY SEASON TICKETS IN PAIRS, ABOUT 200
FANS ADVANCE THROUGH THE WAITING LIST YEARLY.
-THAT MEANS IT COULD TAKE UP TO 20 YEARS FOR A PERSON ON
THE WAITING LIST
-CHICAGO CUBS HAVE LARGEST SEASON TICKET WAITING LIST IN
MLB AT ABOUT 120,000.
23. PERSONAL SEAT LICENSES (PSL)
AN ADVANCED PAYMENT FOR THE RIGHT TO PURCHASE A
SEASON TICKET FOR THE SEAT.
COWBOYS STADIUM
-$4,000-50,000/SEAT
-MOST EXPENSIVE CLUB SEATS:
-30 YEAR, $50,000 PSL/SEAT
-$340/SEAT
METLIFE STADIUM
-$1000-20,000/SEAT.
-52% OF SEATS WILL COST $5K.
-EST. REVENUE: $317 MILLION
25. HOUSTON ASTRODOME
“THE 8TH WONDER OF THE WORLD”
-FIRST STADIUM TO HAVE LUXURY SUITES (53).
-FIRST DOME STADIUM.
-OFFICIALLY OPENED ON 04/12/1965.
26. THE PALACE OF AUBURN HILLS
-180 TOTAL LUXURY SUITES.
-OFFERS 13 UNDERGROUND LUXURY SUITES.
-5 OPENED IN 2005 (450 SQUARE FEET RENTING FOR $450,000/YEAR).
-8 OPENED IN 2006 (800-1,200 SQUARE FEET RENTING FOR
$350,000/YEAR).
6) WHAT DOES THE UNDERGROUND SUITES LACK?
A DIRECT VIEW OF THE BASKETBALL FLOOR
27. PETERSEN EVENTS CENTER
-12,508 SEAT MULTI-PURPOSE ARENA ON CAMPUS OF UNIVERSITY OF
PITTSBURGH.
-FEATURES 18 LUXURY SUITES.
-5 COURTSIDE LUXURY SUITES (ONLY COLLEGE ARENA WITH
COURTSIDE LUXURY SUITES).
-ONE 193 SEAT SUPERSUITE.
28. CLUB SEATS
7) WHAT DO CLUB SEATS OFFER THE PATRON?
-THE OPPORTUNITY TO SIT IN THE MAIN SEATING SECTIONS OF THE
FACILITY BUT IN A MORE EXPENSIVE SEAT.
-WAITER SERVICE.
-SEPARATE CONCESSIONS.
-VIDEO SCREENS.
29. 8) WHAT IS OFTEN THE MOST
IMPORTANT REVENUE SOURCE FOR
MANY FACILITIES?
CONCESSIONS
31. CONCESSIONS
•2ND IN IMPORTANCE TO FINANCIAL SUCCESS.
(#1: TICKETS)
CONCESSION MANAGERS MUST UNDERSTAND:
1) HOW TO SERVE GOOD FOOD AT REASONABLE PRICE
2) DEVELOPMENT OF MARKETING STRATEGY
3) FINANCIAL MANAGEMENT
4) BUSINESS PLANNING
5) PURCHASING
6) INVENTORY CONTROL
7) BUSINESS LAW
8) HEALTH CODES
9) OSHA REGULATIONS
10)CONVENIENCE FOODS
33. 1) When did the Cubs first test dynamic pricing?
-LAST YEAR
2) What seats did they test dynamic pricing?
-BLEACHER SEATS (5,000)
3) For 2013, what seats will the Cubs price using dynamic pricing?
-ALL SEATS (41,210)
4) The Cubs reduced all ticket prices by an average of what %?
-2%
5) Bleacher seats were reduced by what %?
-10%
34. 6) By using dynamic pricing, will the Cubs be increasing or decreasing ticket prices during the season?
-INCREASING (“PRICING ONLY GOES UP.”)
7) Like that of other teams, what is the Cubs strategy with dynamic pricing?
-PROVIDE AN INCENTIVE FOR FANS TO BUY TICKETS EARLY
8) Who was the first MLB team to use dynamic pricing?
-SAN FRANCISCO GIANTS (2009)
9) How many individual tickets do the Giants dynamically price?
-10,000-12,000
10) Unlike the Cubs, what will the Giants do with dynamic pricing?
-DROP PRICES ON THE FLY
11) The Giants have a consecutive sellout streak dating to when?
-OCTOBER 1, 2010
35. WHAT ARE CONCESSION SHORTCOMINGS
1) NOT ENOUGH STANDS
2) INADEQUATE KITCHEN LOCATION & SPACE
3) NO INSTALLATION OF FLOOR DRAINS IN KITCHEN & STAND AREAS
4) NO COMMISSARY FOR EMPLOYEES
5) SERVCE ELEVATORS LOCATED AWAY FROM STORAGE
6) NO PROVISIONS FOR EXHAUST
7) LOADING DOCKS & STOREROOMS ON DIFFERENT FLOORS
8) INADEQUATE VENTILATION
9) INSUFFICIENT ENERGY &
WATER AVAILABILITY
10)CONCOURSES TOO NARROW
36. CONCESSION STANDS SHOULD BE
1) CONVENIENTLY LOCATED (40-60 SEC)
2) WELL ORGANIZED LINE DIRECTIONS
3) BRIGHT, SIGNS, ATTRACTIVE
4) GENERATE AROMA TO CONCOURSE
5) BE ABLE TO BE SERVED BY SINGLE PERSON IN EACH SELLING STATION
6) MENU BOARDS (PRODUCTS & PRICES)
7) ATTENTION GRABBERS
38. ALCOHOL MANAGEMENT
-BEARMAN V. UNIVERSITY NOTRE DAME
-ARAMARK LAWSUIT
-MLB ALCOHOL IN CLUBHOUSES
•DRAM SHOP STATUTES:
ALLOW INJURED PLAINTIFFS
TO BRING
SUIT AGAINST
ESTABLISHMENTS THAT ALLOW
DEFENDANT
•SOCIALDRUNK
TO GET HOST LIABILITY:
ALLOWS INJURED PLAINTIFF TO SUE DEFENDANT WHO
KNOWINGLY SERVED ALCOHOL TO MINOR THAT
CAUSED INJURY OR DAMAGE TO PROPERTY
39. ALCOHOL SALES STRATEGIES
•TO SELL OR NOT TO SELL
•PROCEDURES TO PREVENT
OUTSIDE ALCOHOL FROM
ENTERING VENUE
•CROWD MANAGEMENT
PROCEDURES
•STRONG EJECTION POLICY
•SUPERVISE TAILGAITING
•DESIGNATED DRIVER PROGRAM
•CONSUMPTION POLICIES
40. 9) WHAT IS A PER CAP ANALYSIS?
DIVIDES THE TOTAL CONCESSION SALES BY THE NUMBER
OF ATTENDEES IN ORDER TO DETERMINE THE AVERAGE
ATTENDEE PURCHASE.
41. PARKING AS REVENUE
2ND TO THE BOX OFFICE IN TERMS OF
DIRECT CONTACT BETWEEN THE
FACILITY & THE PATRON.
42. THE PARKING OPERATION
-2 MAIN GOALS FOR A WELL DESIGNED & MANAGED PARKING
OPERATION:
1) INCREASE ATTENDANCE
2) EASE CROWD TENSION
43. 10) WHAT DO SOME TEAMS CHARGE FANS IN ADDITION TO THE FEE
FOR ENTERING THE PARKING LOT?
TAILGATE FEE
47. SPONSORSHIP
13) WHAT CAN SPORT & ENTERTAINMENT FACILITIES PROVIDE A
SPONSOR ACCESS TO?
A TARGET MARKET AUDIENCE
(I KNOW THE BOOK SAID SOMETHING DIFFERENT.)
48. CAN YOU ANSWER THE FOLLOWING QUESTIONS ABOUT
NFL SPONSORS?
49. WHO IS THE NFL’S LONGEST ACTIVE SPONSOR (SINCE 1983)?
50. WHO IS THE NFL’S OFFICIAL SPORTS/ENERGY DRINK SPONSOR?
FOR THE 7TH CONSECUTIVE YEAR SCORED THE HIGHEST
OVERALL AWARENESS MARK OF ANY LEAGUE SPONSOR BY
FANS
51. WHO IS THE NFL’S OFFICIAL SOFT DRINK (SODA) SPONSOR?
2012: STARTED A NEW 10-YEAR RENEWAL PLAN WITH NFL
52. WHO IS THE NFL’S OFFICIAL BEER SPONSOR?
2012: THERE WERE ON AVERAGE 2 BUD LIGHT ADS IN EVERY NFL
GAME BROADCAST
56. WHO IS THE NFL’S OFFICIAL WIRELESS SERVICE SPONSOR?
2012: FOR THE FIRST TIME VERIZON ENABLED FANS TO LIVE
STREAM THE SUPER BOWL
57. WHO IS THE NFL’S OFFICIAL SHIPPING SERVICE SPONSOR?
58. WHO IS THE NFL’S OFFICIAL PIZZA SPONSOR?
PAPA JOHN’S SUPER BOWL XLVII COIN TOSS EXPERIENCE: ALLOWED
FANS TO VOTE HEADS/TAILS ON PAPAJOHNS.COM & FACEBOOK PAGE.
WINNERS RECEIVED FREE LARGE ONE-TOPPING PIZZA
60. WHO IS THE NFL’S OFFICIAL FAST-FOOD RESTAURANT SPONSOR?
2007-2011: VACANT SINCE BURGER KING’S SPONSORSHIP CONTRACT
ENDED AFTER THE 2007 SEASON
2012: MCDONALD’S SIGNED MULTIYEAR DEAL
61. NAMING RIGHTS
-KEY ELEMENTS: LENGTH OF CONTRACT,
CONSIDERATION($), SIGNAGE RIGHTS & LIMITATIONS,
RENEWAL OPTION.
CITIGROUP: 20 YEARS, $400 MILLION
63. WRIGLEY FIELD
-WEEGHMAN PARK FROM 1914-1920.
-CUBS PARK FROM 1920-1926.
-RENAMED WRIGLEY FIELD IN 1926 FOR TEAM OWNER &
CHEWING GUM MAGNATE, WILLIAM WRIGLEY JR.
64. BUSCH STADIUM
-SPORTSMAN’S PARK (1920-1953) HOME OF THE ST. LOUIS
CARDINALS.
-RENAMED BUSCH STADIUM IN 1953 FOR TEAM OWNER
GUSSIE BUSCH.
65. 14) THE FIRST TIME A COMPANY AGREED TO PAY FOR NAMING
RIGHTS TO A PROFESSIONAL SPORT FACILITY (THE COMPANY, TEAM,
& YEAR)?
TEAM: BUFFALO BILLS
COMPANY: RICH PRODUCTS CORPORATION
YEAR: 1973
67. BROADCAST RIGHTS
•MAJOR REVENUE SOURCE FOR PROFESSIONAL &
INTERCOLLEGIATE SPORTS.
•BROADCASTING EXECS LINK AUDIENCE SIZE &
REVENUE TOGETHER.
•THE CONTRACT FOR BROADCASTING RIGHTS IS BASED
ON THE POTENTIAL FOR GENERATING ADVERTISING &
GAINING HIGH TV RATINGS.
•THE LARGER THE AUDIENCE THE HIGHER THE
POTENTIAL FOR REVENUE FROM ADVERTISING.
•BROADCASTERS SEEK PROGRAMMING THAT WILL
APPEAL TO LARGER MORE VALUABLE AUDIENCES.
69. -SINCE 1990 EXCLUSIVE BROADCAST RIGHTS WITH NOTRE
DAME FOOTBALL.
-CURRENT CONTRACT ENDS AFTER 2015 SEASON.
-CONTRACT TERMS HAVE NEVER BEEN PUBLICLY
RELEASED.
70. -STARTING IN JANUARY 2011 THROUGH JANUARY 2014,
EXCLUSIVE BROADCAST RIGHTS FOR BCS GAMES.
-CONTRACT: $125 MILLION/YEAR.
71. -BECAME OFFICAL BROADCASTER OF NHL IN 2005.
-CONTRACT: $72.5 MILLION/YEAR.
-CONTRACT ENDED AFTER 2010-11 SEASON.
-NBC SPORTS RENEWED DEAL AFTER IT PURCHASED VERSUS.
-THE DEAL GOES THROUGH THE 2020-21 SEASON & IS WORTH NEARLY
$2 BILLION.
-VERSUS HAS BEEN RENAMED NBC SPORTS NETWORK.
72. BIG $ OPPORTUNITIES = NEW BROADCAST FORUMS
REGIONAL CABLE TV CHANNELS OWNED BY TEAMS
