NBA Teams Increase Ticket Discounting Amid Struggling Economy
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Most NBA Teams Discounting, Adding Value
To Tickets To Draw Fans During Downturn |
NBA execs next week will meet in Phoenix to address the "most pressing issue facing the league: how to make bargain-hunting fans open their wallets during the worst economic crisis since the NBA was born in the mid-1940s," according to John Lombardo of SPORTSBUSINESS JOURNAL. The gathering, which will take place just before teams begin their season-ticket renewal efforts in February, is "critical given the intense pressure to protect next year's ticket sales." The prevailing sense is that "most teams generally will hold the line on season-ticket prices, but there is far more to the equation, including whether teams will continue this year's aggressive but delicate strategy of discounting seats to move a growing inventory of tickets." NBA Senior VP/Team Marketing & Business Operations Chris Granger: "The majority of our teams are discounting and adding value to tickets. There are now more than 2 million tickets being sold at $10 or less. The difference this year from others is that it's more of a buyers market and people are looking for deals. We are just falling in line with the general economy." Lombardo notes ticket discounting and "added value promotions so far this season have helped preserve the NBA average attendance." Univ. of Central Florida DeVos Sports Business Management Program Associate Dir Dr. Bill Sutton, a former NBA marketing exec who currently serves as a consultant to several teams, estimated that most franchises are now selling 1,000-2,000 tickets per game for $10 or less, a "sharp change in how teams look at their discounting ticket strategy." Sutton: "The philosophy in the NBA used to be that we never wanted the discounts to come directly from the teams. We wanted teams to offer discounts through alliances with sponsors or through a partner’s promotion. But now we may have to have discounting or variable pricing, with Monday, Tuesday and Wednesday night games likely to be sold like a movie matinee because people expect deals on everything" (SPORTSBUSINESS JOURNAL, 1/5 issue).
FULL-COURT PRESS: The Hornets have launched a new Five-Game Flex Plan presented by Delta World Tire, which will be available through mid-February. Each plan allows fans to select five games for as low as $125. Fans will receive a free oil change courtesy of Delta World Tire for each plan purchase (Hornets). Meanwhile, in Sacramento, Mark Glover reported the NBA Kings this season are averaging less than 12,000 fans per game at 17,317-seat Arco Arena. Glover: "Bad times ... and a bad economy to boot." The team this season "doubled the number of $10 tickets" to 1,000, and sponsors Carl's Jr. and Subway "offer discounts and gift cards for Kings game attendees." The Kings also for the first time this season are offering single-game ticket packages, which include food and merchandise (SACRAMENTO BEE, 1/4).
WATCHING THINGS CAREFULLY: NBA Commissioner David Stern yesterday appeared on CNBC’s “Squawk on the Street,” where he discussed how the league is coping with the declining economy. Stern, noting that attendance was up slightly so far this season, said, “Our gate receipts will probably be about flat, up a little in the U.S. We are sharing best practices with our teams as they work hard to provide better value for the fans and get ready for the renewal of their sponsorships and their season tickets. We think that by working hard, providing better value and watching our costs very carefully and prudently that we will be able to get through this in pretty good shape” (“Squawk on the Street,” CNBC, 1/5).
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