SBJ/March 25-31, 2013/Facilities

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  • Arizona State putting gift card packs in area Costco stores

    Don Muret
    Arizona State University officials are introducing a new program this summer in which consumers can buy gift cards at Costco to use toward single-game tickets for sports events on campus.

    The Pac-12 school, in conjunction with its ticketing provider, Paciolan, and Givex, a stored-value technology vendor, will package gift cards sold in pairs with $100 in total value. Under the Costco business model, the gift cards, branded with the Sun Devil pitchfork,will be discounted by roughly 20 percent and sell for about $80, said Steve Hank, Arizona State’s associate athletic director of revenue generation. In turn, Costco receives a percentage of revenue from every gift card sold at its 13 stores in Greater Phoenix.

    ASU expects the program to be a success and it should recoup most of the $20 in customer savings back through the additional money that ticket buyers spend over the gift card’s value. Industry research shows gift card buyers across all markets typically spend 13 percent to 18 percent above the card’s value, Hank said.

    The cards, packaging $100 of value for $80, can be used toward single-game tickets to ASU sports events.
    Photo: ARIZONA STATE UNIVERSITY
    All told, ASU expects to generate revenue in the six figures annually by providing Costco members with the flexibility to attend Sun Devils football and basketball games at their convenience. “It’s an opportunity to reach out to fans with an impulse buy,” Hank said.

    In addition, the integration of the Paciolan and Givex platforms enables Arizona State to capture data on gift card buyers, which the athletic department’s marketing staff can then use to pitch them with additional offers for its sports programs, he said.

    The gift card campaign kicks off in June in time for the 2013 football season. To buy game tickets, gift card buyers can redeem the cards online at thesundevils.com, Arizona State’s official athletics website, and at ticket windows tied to sports facilities on campus.

    In the future, the gift cards’ functionality could be expanded to cover food and merchandise concessions. Arizona State will hold off on incorporating that piece of technology until after upgrades are completed at Sun Devil Stadium, Hank said.

    Gift cards and stored value are not new in pro sports, but Arizona State is believed to be the first major college to use gift cards for buying tickets to athletic events, said Dave Butler, CEO of Paciolan. The California firm has ticketing deals with more than 100 NCAA Division I schools.

    Paciolan officials expect many of the company’s other college partners to start using gift cards after seeing Arizona State’s program.

    “I would be shocked if we don’t have 40 clients doing it by this time next year,” Butler said.

    > WHISKEY RIVER: Greensboro Coliseum recently signed a five-year deal with the Blue Ridge Distilling Co. to brand a portion of its new Ovations VIP Lounge after Defiant, a new brand of single-malt whiskey.

    The whiskey’s name comes from Defiant Marine, a marine salvage company in Bostic, N.C. About 16 months ago, Tim Ferris, owner of the salvage firm, built a distillery in Golden Valley, N.C., in the foothills of the Blue Ridge Mountains, 140 miles southwest of Greensboro.

    In Greensboro, the distillery’s deal carries options that could extend the partnership to 10 years with a total value reaching six figures, said Scott Johnson, the arena’s deputy director.

    In return for its investment, Defiant received branding on the mirrored glass wall behind the lounge’s bar and provided free samples of Defiant whiskey during the ACC men’s basketball tournament in mid-March, Johnson said.

    It is the coliseum’s first hard liquor sponsor. The facility also added North Carolina microwbrewer Natty Greene’s as its new beer partner, said Matt Brown, the building’s managing director.

    The lounge, situated on the arena’s ground floor, one level below the main concourse, opened earlier this month for the ACC women’s tournament. It is part of $24 million in total upgrades to the 54-year-old facility, a multiyear project that will be completed in 2016.

    For this year’s ACC basketball tournaments, the arena debuted a new $1.5 million Daktronics center-hung video board and 9,000 new cushioned seats in the lower bowl. Irwin Seating Co. produced the new seats.

    The installation of 11,000 new seats in the upper bowl began last week. Wireless upgrades, four new suites and expansion of the upper concourse with larger restrooms are also part of the next phase of improvements.

    Don Muret can be reached at dmuret@sportsbusinessjournal.com. Follow him on Twitter @breakground.

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  • Red Sox sign jeweler Alex and Ani as presenting sponsor for redesigned banquet space

    The Boston Red Sox have signed a multiyear deal with a Rhode Island jeweler to be the presenting sponsor of a renovated banquet space at Fenway Park.

    The Champions Club Presented by Alex and Ani is the new name of the old Players Club, situated behind the right-field seats in an area known as the Big Concourse. It is one floor below the Royal Rooters Club, a members-only lounge that opened last year.

    The Champions Club, formerly the Players Club, gets natural light from new windows.
    Image: BOSTON RED SOX
    Financial terms of the sponsorship were not disclosed. Carolyn Rafaelian, the jeweler’s owner, founded the company in 2004 and named it after her first two daughters. Inc. magazine last year ranked Alex and Ani among America’s 250 fastest-growing private enterprises.

    The revamped Champions Club is one of three hospitality spaces the Red Sox have remodeled as part of the team’s $3 million investment in stadium upgrades.

    The 3,624-square-foot banquet room has a much brighter look after the Red Sox returned the space to its original layout by adding windows to bring in natural light, said Jonathan Gilula, executive vice president of business affairs. Over the years, those openings had been blocked by concrete.

    The space is reserved for pregame meals for groups of 200 with a new movable wall that can split the room in two. A comprehensive audio-visual system with new televisions, including a few 80-inch screens, provides better technology for group presentations.

    The club is available for non-game-day functions, and the Red Sox believe the improvements will enable the team to book more offseason events. “We had difficulty doing that in the past because it was very unattractive … dark and dreary,” Gilula said.

    The club’s theme is tied to the Red Sox’s seven World Series titles. There are photos on display from the 2004 and 2007 championship teams and the hanging of World Series banners at Fenway Park the following seasons, he said.

    Separately, the Royal Rooters Club has been improved after its debut last season as a casual restaurant reserved for 1,500 to 2,000 season-ticket holders paying $250 membership fees. There are new restrooms directly tied to the space and a new full-service kitchen for Aramark, the park’s food vendor.

    Jim Beam sponsors the Royal Rooters bar area. The Red Sox are searching for a title sponsor for the lounge itself, Gilula said.

    The third upgrade covers the Absolut Clubhouse, a premium club on the third-base side reserved for Dugout Seat and EMC Club seat holders. The 2,150-square-foot space opened in 2004, one of the first high-end destinations to be developed during extensive renovations from 2002 to 2012.

    After nine seasons, the club needed a face-lift, Gilula said. The refresh covers new flooring, lighting and furniture, plus a new permanent bar with custom millwork, granite countertops, wood paneling and glass shelving to display bottles of Absolut vodka. The liquor maker has sponsored the club since 2007.

    Elsewhere in the park, the Red Sox are installing 25 weatherproof televisions on grandstand columns for fans to view game replays. The 46-inch screens are made by SunBrite.

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