Highlights From Sports Facilities & Franchises Day One

(l to r) David Pillsbury, Stan Kasten And Derrick Hall Take Part In Opening Panel

The seventh annual Street & Smith’s Sports Facilities & Franchises conference kicked off yesterday at The Wyndham New Orleans at Canal Place with a panel titled, “The Executive Prospective: The Facility as a Catalyst for Franchise Growth.” Several speakers indicated that the biggest challenge facing their franchises is ticket sales. Nationals President Stan Kasten said, “We have increased fragmentation of our marketplaces, ... and we’re trying to continue to escalate revenues at a time when the entertainment options are so widespread.” Celtics President Rich Gotham added, “We play in a market where the Red Sox and Patriots ... are very successful both on the playing field and off, and I think for mindshare in that market we’re a distant third team even though we have a great brand. We think ticket sales 24/7.” Kasten said of the fan experience, “When we’re selling a ticket to a customer, it’s not just their money we’re asking for, it’s the four hours of their time we’re asking for. ... If we give them a good time during their four hours, if we give them reasons to spend money, they don’t mind spending money.” Gotham noted the Celtics conduct surveys after every home game as a way to gauge fan opinions on in-arena entertainment. Sunrise Sports & Entertainment COO Michael Yormark: “Fans have a much higher expectation today when they spend those dollars and they are looking for much more. The more research we can do, ... the better our success is going to be.”

CONCESSIONS: Kasten said there is less negative reaction to ticket price increases than to increases to concessions. Kasten: “Fans seem to understand why you have to raise ticket prices because payrolls are going up and that’s how you afford the team. But they don’t understand that same connection that exists with food prices. ... That’s because they understand how much a hot dog costs outside the park versus what it costs inside the park; they have no way to compare what a second baseman costs outside the park.” Ravens Senior VP/Business Ventures Dennis Mannion said, “The concessions world is in need of creative thinking.” He added, “We’re getting to a place where $8 beers and $6 hot dogs doesn’t make any sense to anybody.” Yormark: “When you look at concessionaires in general, what have they done over the last ten years to change their business model? ... Where’s the big idea? Where’s the creativity? ... How do we justify premium prices?”

Jon Oliver (r) Says UVA Modeled Basketball Arena After NBA Facilities

JOHN PAUL JONES ARENA: The day’s second session featured a case study on the Univ. of Virginia’s (UVA) new John Paul Jones Arena. UVA Exec Associate AD Jon Oliver said that the school modeled the $130M arena after NBA facilities. Oliver: “We try and follow the NBA markets, steal ideas from them, but I think we created something that really works for us.” He added, “When (fans) walk into that building they talk about the experience, not just the basketball.” Oliver said the school has sold all 20 suites in the arena. He added, “If I had to do it all over again I would have built more suites.” Oliver also said the arena has already helped the men’s basketball team recruit players. Oliver: “The last ten years we really weren’t on anybody’s final list that was a top 20 player. ... Of the top 15 players in the next recruiting class we’re on every one of their lists.”

HOUSE CALL: During a session titled, “Filling the House: Ticket and Suite Sales,” Dodgers VP/Ticket Sales Steve Shiffman said the new all-you-can-eat section in right field at Dodger Stadium “is going great.” He added, “I believe (all-inclusive tickets are) the future.” Discussing the secondary-ticket market, Saints VP/Ticket & Suite Sales Mike Stanfield said, “Either you’re going to grab a piece of it and manage your own area or you’re just going to waste money. If you can manage it and collect those names and numbers to add to your data base, I don’t understand how somebody can’t be in that market.” The panelists also discussed the practice of complimentary tickets. Stanfield said, “Comps can kill an organization.” MLS Dynamo COO Chris Canetti said his team has a “strict policy” against handing out complimentary tickets. He said, “Let’s give people more reason to come, have them pay fair price for that and then they will actually believe in that value and see that value and that’s going to help us grow our brand.”

BRANDED AREAS: During a session titled, “Developing Branded Areas to Increase Sponsorship Value,” Heineken USA Southeast Region Marketing Dir Bruce Skala said the company is “getting away from static signage.” Skala: “We don’t want to be wallpaper. I don’t want to spend $80,000 dollars for a sign in left field that people are going to glance over. ... We want to become interactive; we want a chance to have our brands somehow become part of the fan experience.” Reds VP/Corporate Sales & Marketing Bill Reinberger, whose team constructed a branded area with Cincinnati Bell this season, said the team will only agree to a branded area for a three-year minimum. Noting the Reds have branded concessions, Reinberger said, “It’s really not a money maker for them. But the consumers love it.”