Chapter 9Ticket 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 athletics (27%).

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 entertainment options.

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.

Pricing Tickets for Sporting Events

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)

Differential Pricing

Flexible Ticket Packaging

Money-Back Guarantee

WEB BASED TICKET SALES Main point – All parties benefit from a web-based ticket program

Organizing Ticket Sales Types of Tickets:

Full season Tickets bought for complete season

Partial Season Tickets bought only for part of a season/ certain # amount

of fames Individual Game

Ticket per game Complimentary

“Comps”/ group or individual tickets at no cost to consumer Student

Specific tickets at discounted or other different regulations for students

Preseason Sales Different start dates for different teams

depending on organization Should have all tickets printed, seats

assigned, orders recorded, etc. before season starts

Organizations should take advantage of new additions, fan enthusiasm, changes in team, etc. to sell more tickets

Methods of Selling Direct Mail Follow-up Phone Calls Telemarketing Direct Sales Outlets E-ticketing

In-Season Sales Once a season starts, ticket offices know

what tickets they have left over. They then sell them by: Group sales Consignment Discounts Complimentary admission Giveaways

Account Systems Computerized ticketing

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.

Printing Tickets may be printed by an outside company or by the ticket office. Season Tickets

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.

Ticket Records The ticket office maintains records to account for every ticket.

Game Day

Pre-game preparations Many preparations are done before the ticket windows are opened.

During Game Although game day is difficult for the ticket office, there are strategies to help

the operation run smoothly.

Post-game 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.

Attendance

Post-game reconciliation

Summary Consumers in the United States spend almost 12

billion dollars a year buying tickets to sporting events.

Economic Recession of the early 20’s Erosion

Cost of ticket

Internet Ticketing