Maximizing Revenue with Analytics

Class Overview 1 How Do Sports Organizations Make Money? Examining the six primary sources of revenue. How Can Sports Organizations Make More Money Using new strategies and tactics to increase revenue. Just Win Baby Does winning make a sports strategist unnecessary?

How Do Sports Organizations Make Money? 2 Revenue Generating Framework Gameday Ticket Sales Concessions Parking Media Television Digital Mobile Sponsorship Team Sponsorship League Sponsorship Events Venue Audience Appreciation Merchandise Clothing / Apparel Licensed Goods Subsidies Revenue Sharing Government Funding The sports industry is a $750 billion per year business. Revenues break down into six major categories.

Mining Data 3 Regression Analysis and Data Mining Ticket Sales Decision Tree Model Home Games Age Game Time Paid Attendance = 15% Paid Attendance = 45% Paid Attendance = 77% Alumni Current Students > 40< 40>12 pm Paid Attendance = 42% <12 pm

Defining Revenue 4 What can any organization do to maximize their revenues / profits? RevenueCostProfit Fixed Costs Variable Costs Cost VolumePriceRevenue

Customer Value Determining Willingness-to-Pay 5 Value Framework

Increasing Revenue – Dynamic Ticket Pricing 6 Case Study – Northwestern University Source:

Ç√Ç√ Ç√Ç√ How Can Sports Organizations Value Sponsorship Inventory? 7 Targeted Impressions By Initiatives, Demographics, and Channels Achieving Partner’s Goals Increasing Partner’s Revenue

How Does This Approach Enhance The Sports Sponsorship Experience? 8 Sports Organizations Demonstrable ROI Provide a clear, cross- channel ROI that can easily be shared with all stakeholders Transparency Provide fair market value based on clients’ goals Accountability Brands can track value information throughout the course of the year

Conclusion 9 Revenue Generation Organizations generate revenue in six primary ways: game day, media, sponsorship, special events, merchandise, and subsidies Using Analytics Sports strategists must be savvy revenue generators, using innovative analytics models to maximize profit Concepts such as decision-tree modeling and dynamic pricing are becoming key sources for increasing revenue Everyone Sells Sports strategists need to be aware that financial considerations are one of the essential strategic priorities for organizations