SBD/February 7, 2012/Franchises

Padres Become Latest MLB Team To Implement Dynamic Pricing System

Padres season-ticket renewals expected to be in mid to high 70% range
The Padres have become the latest MLB team to implement dynamic pricing, meaning fans purchasing single-game tickets well in advance of games this season "will usually get a discounted price," according to Bill Center of the SAN DIEGO UNION-TRIBUNE. Padres President & COO Tom Garfinkel yesterday said, "Nearly three-quarters of our tickets will go on sale at or below 2011 prices. The primary motivation is to provide advance discounting to fans to encourage early purchase." The Padres' new computer-controlled pricing program "will give the team the ability to adjust ticket costs higher or lower based on a number of factors including market demand, pitching matchups, the team’s performance, weather and potential milestones." The program "will differ from other major league teams in at least one respect: There will be a wider range of tickets available for advance purchase." Fans buying in advance "will also have three free delivery options." Garfinkel said season-ticket renewals for the '12 season will "end up in the mid to high" 70% range" (SAN DIEGO UNION-TRIBUNE, 2/7). MLB.com's Corey Brock noted the Padres "studied dynamic pricing for nine months before joining the Cardinals, Giants, A's, Twins, Mariners and Pirates in offering some semblance of dynamic pricing this season" (MLB.com, 2/5).

CAN YOU HEAR ME NOW? SPORTSBUSINESS JOURNAL's Don Muret reports the Padres have “signed a long-term deal with Verizon Wireless to upgrade Petco Park for Wi-Fi and 4G coverage that will ultimately serve as the backbone of the team’s new fan membership program.” Garfinkel said that the agreement is “one of the first deals for Verizon Wireless" in MLB. Sources said that the deal “spans more than 10 years and is valued in the high six figures to low seven figures annually.” Muret notes the Padres’ goal is “to ‘layer’ other elements on top that are connected to a fan loyalty program under development, such as a special section where members can access tablets or the ability to order food and beverages from their seats.” Members can “elevate their status by becoming season-ticket holders and attending games, making them eligible for exclusive experiences.” The Padres will “test the program this season with about 300 to 500 people tied to 150 to 200 season-ticket accounts” (SPORTSBUSINESS JOURNAL, 2/6 issue).
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