From Forbes.com
Review by Courtney Hamner in KIN 501
The article “Is Dynamic Ticket Pricing Hurting MLB Attendance?” starts out by discussing the Yankee’s decrease in attendance. Their attendance is down 3.5 percent year-over-year. The Yankee’s are traditionally a standard bearer for sports franchises. This leads other MLB team managers to worry if the same is going to happen to them. The article discusses the possible reasons behind the decreased attendance of the economy, and bad on-field performance. The writer points out that these are just convenient excuses.
One of the main reasons the article points out is the use of Stub Hub. This is a secondary market for ticket sales. Stub Hub is dramatically undercutting the face value of tickets available on the official Yankee website or physical box office. According to Dead Spin, the more expensive the face value, the more likely it is going to be sold under face value. This causes the Yankees to underestimate the market. Another reason could be that the Yankee’s don’t use dynamic ticket sales. But as the article goes on it discusses how all MLB teams are struggling with attendance.
The writer says a number of things can be causing decreased ticket sales. But if we try and say the Yankees ticket sales and attendance numbers are caused by misreading the market or not using dynamic ticket sales, than what explains the other team’s decreases? The main focus is based around ticket sales being too confusing.
Dynamic ticket sales are full of flaws. The first flaw is that it offers too many choices. Yes, human beings love to have many options but when given too many options we are faced with not being able to make a choice. This leaves us feeling dissatisfied. Dynamic ticket pricing often includes a daily (sometimes hourly) fluctuation in price. The second flaw is pricing schemes often shift the burden of pricing decision and activity from the franchise to the fan. Fans are tasked with trying to determine what the right price for a ticket is. The last flaw the article discusses is that dynamic ticket pricing may tax franchise personnel more than establishing ticket prices in the off-season and sticking with them for the 162-game slate.
I feel that these factors can be attributed to decreased attendance. I think that dynamic ticket sales can change the pricing of tickets so much that fans wonder if they really are getting a good deal. But at the same time I think that dynamic ticket sales have a lot of positive attributes as well. Dynamic ticket sales help in a bad economy by offering prices that fans can afford. Yes, ticket prices may change frequently, but they change within the level of demand, type of customer, and weather. Therefore, the customer is being put first. Although ticket sales are getting very confusing, I think that it is not the main culprit for decreased attendance. I think that the economy and a bad on-field performance are convenient but very true excuses for poor attendance. Not just one factor can be given for the decreased attendance this year.
Tuesday, October 2, 2012
"Allen’s new Eagle Stadium plans to go beyond local high school football games"
From DallasNews.com
Review by Anne Whitmore in KIN 501
In the article “Allen’s new Eagle Stadium plans go beyond local high school football games” written by Jeff Mosier (2012), the author explains how the school district is trying to find ways to attract funding to help pay for spending $60 million dollars on a high school football stadium. The stadium has 18,000 seats and has the potential to attract 100,000 nonresidents each year to the town. The ticket revenue from events and games is expected to cover operating costs plus have money left over to put back into the general budget fund. With only four guaranteed home football games the district is looking for other avenues to fill the stands, keep concessions busy, and help other local businesses prosper (Mosier, 2012).
Advertised as a regional attraction the school district hired PPI marketing to help bring in more events (Mosier, 2012). Mosier (2012) writes that the Allen stadium has already been successful in attracting games to its new stadium held perviously at other high schools and professional stadiums. Other events that PPI is trying to attract to the stadium is the Lone Star Football Festival usually held at Cowboys Stadium. The NCAA Division II football championship and the Texas vs. the National all-star football game which is televised and attracts scouts from across the US and Canada. PPI is also looking to attract concerts and marching band competitions to this new space. Part of their marketing plan for these events is to either offer a cheaper venue for the event. Or in some cases they are able to offer more seats and a new clean environment compared to older venues (Mosier, 2012).
Along with attracting events to offset the cost of the stadium PPI has also helped Allen gain lucrative sponsorships. The stadium will have 10 founding sponsors who will pay $35,000 dollars annually for three years (Mosier, 2012). At the time of this article they had six founding sponsors signed up. Part of PPI’s marketing plan is to offer these sponsors a “clean look” (Mosier, 2012). Meaning that the district is limiting the signage around the stadium and the number of sponsors. According to Mossier (2012) each of the founding sponsors will receive ads in game programs; signs in the home and visitors concourse; sideline signs, static signs and two 30-second commercials on the video board; mention by the public address announcer; and signs in the baseball-softball complex and gymnasium. The stadium also has four “community” sponsors that pay $15,000 per year and receive a smaller amount of signage. Three of these vendors have vending contracts with the stadium or school district (Mosier, 2012).
In the article “Allen’s new Eagle Stadium plans go beyond local high school football games” written by Jeff Mosier (2012), the author explains how the school district is trying to find ways to attract funding to help pay for spending $60 million dollars on a high school football stadium. The stadium has 18,000 seats and has the potential to attract 100,000 nonresidents each year to the town. The ticket revenue from events and games is expected to cover operating costs plus have money left over to put back into the general budget fund. With only four guaranteed home football games the district is looking for other avenues to fill the stands, keep concessions busy, and help other local businesses prosper (Mosier, 2012).
Advertised as a regional attraction the school district hired PPI marketing to help bring in more events (Mosier, 2012). Mosier (2012) writes that the Allen stadium has already been successful in attracting games to its new stadium held perviously at other high schools and professional stadiums. Other events that PPI is trying to attract to the stadium is the Lone Star Football Festival usually held at Cowboys Stadium. The NCAA Division II football championship and the Texas vs. the National all-star football game which is televised and attracts scouts from across the US and Canada. PPI is also looking to attract concerts and marching band competitions to this new space. Part of their marketing plan for these events is to either offer a cheaper venue for the event. Or in some cases they are able to offer more seats and a new clean environment compared to older venues (Mosier, 2012).
Along with attracting events to offset the cost of the stadium PPI has also helped Allen gain lucrative sponsorships. The stadium will have 10 founding sponsors who will pay $35,000 dollars annually for three years (Mosier, 2012). At the time of this article they had six founding sponsors signed up. Part of PPI’s marketing plan is to offer these sponsors a “clean look” (Mosier, 2012). Meaning that the district is limiting the signage around the stadium and the number of sponsors. According to Mossier (2012) each of the founding sponsors will receive ads in game programs; signs in the home and visitors concourse; sideline signs, static signs and two 30-second commercials on the video board; mention by the public address announcer; and signs in the baseball-softball complex and gymnasium. The stadium also has four “community” sponsors that pay $15,000 per year and receive a smaller amount of signage. Three of these vendors have vending contracts with the stadium or school district (Mosier, 2012).
Critique
Like it said in the article I also believe that Allen is doing a good job of taking advantage of what the new football stadium has to offer by aggressively pursuing events and sponsorship options (Mosier, 2012). This stadium has received coverage nationwide and is earning mentions form The New York Times and national TV networks. It has the hype of being new and the “Aw” factor going for it until the next new thing comes around (Mosier, 2012). The stadium and the marketing behind it is setting a new standard for high schools across the nation. It is also setting a new standard for what businesses can look at for sponsorships. I have no doubts that more and more local public entities will try to follow suite. Leading to towns without professional teams having more opportunities for this type of investment.
I believe it is smart for a business to invest in a local project. It gets their name out to the community and beyond in a positive fashion especially in Texas where football is king. In Allen they are providing a distinct and an innovative way to offer a sponsor a deal that they will not see anywhere else. I believe that is the main reason the district has been successful with this project.
Allen’s stadium took a lot of money to build and right now seems to be on its way to supporting it self and the town. I would love to see a follow up article after three years to see if the school district is able to retain sponsorships and uphold this new standard for high school football stadiums and marketing. I would also like to see an article about what rules and regulations that are in place to help control public entities trying to gain sponsorships for their districts. I know that there are some already in place but what new regulations will come about because of the potential growth factor for sponsorships at the high school level.
Like it said in the article I also believe that Allen is doing a good job of taking advantage of what the new football stadium has to offer by aggressively pursuing events and sponsorship options (Mosier, 2012). This stadium has received coverage nationwide and is earning mentions form The New York Times and national TV networks. It has the hype of being new and the “Aw” factor going for it until the next new thing comes around (Mosier, 2012). The stadium and the marketing behind it is setting a new standard for high schools across the nation. It is also setting a new standard for what businesses can look at for sponsorships. I have no doubts that more and more local public entities will try to follow suite. Leading to towns without professional teams having more opportunities for this type of investment.
I believe it is smart for a business to invest in a local project. It gets their name out to the community and beyond in a positive fashion especially in Texas where football is king. In Allen they are providing a distinct and an innovative way to offer a sponsor a deal that they will not see anywhere else. I believe that is the main reason the district has been successful with this project.
Allen’s stadium took a lot of money to build and right now seems to be on its way to supporting it self and the town. I would love to see a follow up article after three years to see if the school district is able to retain sponsorships and uphold this new standard for high school football stadiums and marketing. I would also like to see an article about what rules and regulations that are in place to help control public entities trying to gain sponsorships for their districts. I know that there are some already in place but what new regulations will come about because of the potential growth factor for sponsorships at the high school level.
Monday, October 1, 2012
"ESPN agrees to pay $80 million a year to broadcast Rose Bowl"
From the Los Angeles Times
Review by Jordan Stanton in KIN 332 (section 1)
The BCS bowl game; the Rose Bowl is one of the oldest bowls in NCAA college football at 94 years old. Broadcast programs that show this game on New years day during the afternoon every year is paid 30 million a year. Starting in 2015 ESPN will be paying broadcasters 80 million per year. The Rose Bowl being nicknamed the “Granddaddy of them all” really wants to make a statement and gain all the attention they can get. There was no word on why they are getting all this money and how they are going to increase the viewing for the Rose Bowl game. Ad and commercials when the time comes will probably be out more than any other BCS bowl such as the Orange Bowl, Cotton Bowl and Sugar Bowl. Yes, there are many bowls but those are the top ones that are out their besides the National Championship game. In Pasadena, California where the Rose Bowl stadium is located, they are going to do almost a 200 million dollar project on renovating the whole entire stadium. I don’t know if this contract had to do anything with this, but a stadium that is 90 years old and bring many viewers and people together deserve a new look. With the new look and the new contract for broadcasting, many good things will be in the Rose Bowl’s favor in the near future. Marketing wise, ESPN took a big hit with choosing the Rose Bowl over all the other bowls because it is the oldest bowl and the most respected bowl. Also being in California helps out the situation too because it is a beautiful location and is a high populated state. Ads and Broadcasting this bowl shouldn't be a very hard task at all and they have the best date to have the game played on, New Years day.
Review by Jordan Stanton in KIN 332 (section 1)
The BCS bowl game; the Rose Bowl is one of the oldest bowls in NCAA college football at 94 years old. Broadcast programs that show this game on New years day during the afternoon every year is paid 30 million a year. Starting in 2015 ESPN will be paying broadcasters 80 million per year. The Rose Bowl being nicknamed the “Granddaddy of them all” really wants to make a statement and gain all the attention they can get. There was no word on why they are getting all this money and how they are going to increase the viewing for the Rose Bowl game. Ad and commercials when the time comes will probably be out more than any other BCS bowl such as the Orange Bowl, Cotton Bowl and Sugar Bowl. Yes, there are many bowls but those are the top ones that are out their besides the National Championship game. In Pasadena, California where the Rose Bowl stadium is located, they are going to do almost a 200 million dollar project on renovating the whole entire stadium. I don’t know if this contract had to do anything with this, but a stadium that is 90 years old and bring many viewers and people together deserve a new look. With the new look and the new contract for broadcasting, many good things will be in the Rose Bowl’s favor in the near future. Marketing wise, ESPN took a big hit with choosing the Rose Bowl over all the other bowls because it is the oldest bowl and the most respected bowl. Also being in California helps out the situation too because it is a beautiful location and is a high populated state. Ads and Broadcasting this bowl shouldn't be a very hard task at all and they have the best date to have the game played on, New Years day.
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