Strong demand for premium seating at the new Chase Center gives suite holders a chance to recoup some of their investment.Paolo Vescia
The Golden State Warriors are the first NBA team to create their own secondary suite product with the launch of “Suite Exchange,” which will allow for the resale of even the swankiest of premium seating at the new Chase Center.
Much like season-ticket holders have used the secondary market to offload inventory and recoup part of their investment, the Warriors are utilizing the concept for the first time in the premium marketplace. Suite Exchange will be fully owned and operated by the team and will be the only platform in the league that allows for current suite holders to resell their premium areas for individual Warriors games, concerts and other events at the arena.
All suite levels, including the Chase Center’s pricey courtside suites, which sell for as much as $2.25 million a year, will be available on the platform, which was rolled out around the start of the NBA season that began on Oct. 22.
“We know there is a need for it,” said Nick Bisho, vice president of suite sales and service for the Warriors. “Our suite holders are looking for an avenue to participate in the resale of their suites, but they wanted it to be secure and authentic.”
The new marketplace covers everything from the 32 top-end courtside suites to the 44 mid-level suites.Golden State Warriors
Suite Exchange is modeled after a typical secondary ticketing site, but instead of tickets the suites are resold for single events. Suite holders can list their suites for a fixed price or they can put the suites up for bid. The team takes an undisclosed cut from the resale price. No third party is involved in the sale and buyers on the resale market receive the same benefits as the suite owners, such as all-inclusive food and beverage.
Golden State Warriors
“We believe in the open marketplace,” Bisho said. “We want this to be a tool that the suite holders can utilize and recoup some of their investment as they go along.”
The top suites at the Chase Center sell for $2.25 million per year for eight of the 32 courtside lounges. The low end is $1.3 million annually. The 44 mid-level suites cost about $1 million per year, and the 60 theater boxes cost between $350,000 and $525,000 per year.
All of the suites are sold out, but strong demand for a premium seat experience at the arena is pushing the team to launch Suite Exchange. On Oct. 24, the site listed courtside lounge and other suites up for bid for the Warriors’ Nov. 1 game against the San Antonio Spurs, with a four-seat theater box listed for resale at a cost of $1,600. It’s appealing inventory for fans who want a premium experience in a glitzy new arena to watch a team that has been in the NBA Finals for the past five seasons and won three NBA titles.
In addition to giving Warriors suite holders the added benefit of reselling access to some of the most expensive seats in sports, the team gets a new list of potential premium seating buyers.
“We’ve sold the majority of our suite products on multiyear leases, but this opens the floodgates to allow for a company to get one or two games,” Bisho said. “We knew that there is going to be a demand. We are fortunate that we are in a good position and this enhances the experience for our suite holders.”
Suite holders can take bids for their unused inventory or set a fixed price. The team gets a cut of the resale price.
To protect the suite resale market, the team will authenticate every Suite Exchange transaction and will require at least a seven-day period between the suite sale and the event to prevent credit card fraud.
“We will have an in-house team authenticating every buyer,” Bisho said.
League executives confirmed that the Warriors are the sole NBA team to create a suite resale product, and they are watching how the Warriors’ new approach plays out.
Other teams routinely sell suite inventory for individual games, but not directly through the secondary market. Count on other franchises with high premium demand and deep suite inventory to also closely watch the Warriors’ new strategy.
“There is potential with any team and just like any season tickets, suites are a product you may be looking to offload,” said Amy Brooks, president of the NBA’s team marketing and business operations division and chief innovation officer for the NBA. “They are the first team to do this. There is nothing in the market that is appropriate to address the need. The Warriors built this themselves and see an opportunity to create something new. Ultimately, the goal is to increase satisfaction and the renewal rate of suite holders.”
