Reworking NFL Stadium Status Kyle McBrierty, Robbi Melvin, Kellie Walsh American Studies, Colby College, Waterville, ME The Problem A football arena is,

Slides:



Advertisements
Similar presentations
Profit 1. Profit defined A typical assumption in all of economics is that firms are profit maximizing entities. This essentially means that if a firm.
Advertisements

Sports Distribution 2.2 Event & Media Distribution.
OKC Scissor-Tailed Fly Catchers Matt Tom C.J.. Location Our sports team is located in Oklahoma city, Oklahoma The sport we choose was Football We decided.
NewsCorp Manager Workshop
PROFESSIONAL SPORTS Mrs. Wilson Larry A. Ryle High School Sports Marketing.
SEM A – Marketing Information Management (MIM)
FACILITY FINANCING CHAPTER 9. TERMS Subsidies Subsidizing construction Infrastructure Subsidies Operational subsidies Gestation Era Public Subsidies Era.
Chapter 6.  Just remember Karl “Carl” Pearson  Let’s run some correlations!  Analyze  Correlate ▪ Bivariate.
Warming Up 1. Sports in the economy The US economy in 2010 generated about $14 Trillion in goods and services. The author of our book tells us that in.
Marketing through Sports Using Mainstream Strategies
Reasons behind the Lockout deal. Owners Want a 18 Game Regular Season Owners Want More Overall Money The Amount of Upgrades the Facilities Cost Rookie.
17-1 Chapter 17 Pricing Decisions in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
1 STADIUM ECONOMICS: SHOW ME THE MONEY!! Stadium Trends Arguments for Public Funding of Stadiums Arguments against Public Funding of Stadiums The Dollar.
ROLE OF MARKETING IB BUSINESS & MANAGEMENT A COURSE COMPANION P
Case Analysis Anne O’Dell
Sports and Entertainment Marketing © Thomson/South-Western ChapterChapter Selling Sports and Entertainment 12.1 The Sales Process 12.2 Ticket Sales 12.3.
THE ECONOMIC EFFECT OF RECESSIONS ON MAJOR LEAGUE SPORTS IN THE UNITED STATES Jessie Welton, University of Wisconsin- La Crosse WEA Conference, November.
By: Parker Bean, Tyler Sterner, Shane Swearman, Jaleel Grosvenor.
NATIONAL INDOOR FOOTBALL ASSOCIATION
Differences in Marketing
Identify Sport/Event Trends
Sports Marketing Analysis A Look at the NFL and NHL Group Members Brian Carr Stan Zajdel Katie Greane Valerie Moore Dennis Vogel.
Extending your reach !. Extending your reach… Delivering your message to millions of online users Online traffic Our online services deliver your message.
Lesson 7.1 – Understanding Sales. LESSON 7.1 Intro to Promotion & Sales Sales Action Sales: The process of determining customer needs and wants through.
 Stadium Trends  Arguments for Public Funding of Stadiums  Arguments against Public Funding of Stadiums  The Dollar Value of A Fans Pride  Who should.
SPORTING VENUES Megan Darrow. DIFFERENT TYPES OF VENUES Football Stadiums or Domes Baseball Stadiums Racing Horse, Dog, and Auto Hockey Multi-purpose.
4.2 Licensing. Students will assess the importance of event marketing & entertainment in sports.
Unit 1. Goals  Define sports marketing.  Explain the value of sports marketing to the economy. Chapter 1 Slide 2.
Marketing Plans Created By Memory Reed Promoting Your Products ·Promotion – communicating with a customer through advertising, publicity, sales.
You ordered a meal at Taco Bell for you and a friend. The total of the meal was $ You gave the cashier $ How much change will you receive?
Copyright © 2014 by Sports Career Consulting, LLC Lesson Financing.
Bell Ringer What is the total price of an item that is $102.30, if the sales tax rate is 6%?
Season Tickets & Premium Seating. Today Quiz Recap Discuss the buyers of season tickets and premium seating Examine trends and opportunities in premium.
4.1 Event Marketing Marketing The Event 4.1 The Event.
Fantasy Forum Luke Hanish, Lindsay Sather, and Landon Baker.
Differences in Marketing Sports and Entertainment Events.
4.1 Event Marketing Marketing The Event 4.1 The Event.
Tourism and Hospitality Marketing TOUR 2006 Grace Lee.
U-18 Pune FC SPONSORSHIP PROPOSAL
Sports Marketing Sports spectators often have more in common than just the sports –Competition –Tastes –Spirit/Fanaticism The goal of sports marketing–
Sports Distribution Event & Media Distribution Standard 2.2.
An Analysis of the National Football League Ticket Market By Mike Lloyd, Frank Kingston, Ryan Zink Introduction In our analysis of the NFL ticket market.
WF SEMII Types of ticket-sales programs Many factors are used to estimate ticket sales for sporting events, such as corporate sponsorships and promotional.
Lesson 7.1 – Understanding Sales Copyright © 2013 by Sports Career Consulting, LLC.
Chapter 7 The Sport Product. Objectives To recognize the elements of the sport product that contribute to its uniqueness in the wider marketplace of goods.
Virtual Business- Sports Talking Points. Franchise Location The selection of a franchise location is a very important decision for any sports team. The.
By: Nick Skrip Partnership Opportunities Package.
EVENT DISTRIBUTION Sports Entertainment and Recreation Marketing.
Distribution of Sports Getting the Experience to the Fans Written by: Memory Reed Georgia CTAE Resource Network 2010.
Standard Four  Students will assess the importance of event marketing and entertainment in sports.
The Money of Sports & Entertainment Marketing
Sports and Entertainment Marketing Sponsorship
Chapter 4 Business of Sport.
Lesson 7.1 – Understanding Sales.
Explain ticketing and seating arrangements
ACCOUNTING FIRM PARTNERSHIPS
Event & Media Distribution
2.2 Event & Media Distribution
What Is Marketing? Simple Definition:
Explain ticketing and seating arrangements
Marketing Plans.
Selling Sports and Entertainment
2.2 Event & Media Distribution
STADIUM ECONOMICS: SHOW ME THE MONEY!!
2.2 Event & Media Distribution
Marketing The Event 4.2 Licensing.
Fan Cost Index The fan cost index (FCI) is a sports statistic that has been around for several years now. Very few sports fans will be able to tell you.
Explain ticketing and seating arrangements
Do Revenues Effect Success Among Professional Sports Teams?
Economic Analysis of Firm Operations of Atlanta United FC
Presentation transcript:

Reworking NFL Stadium Status Kyle McBrierty, Robbi Melvin, Kellie Walsh American Studies, Colby College, Waterville, ME The Problem A football arena is, by most definitions, a space to watch and play America’s favourite sport. However, in recent years, the role of the modern arena has morphed from a place for all to enjoy football to an elitist shopping mall. Now sporting expensive luxury suites, inflated ticket and concessions prices, and endless shops and stores, today’s stadiums have pushed out the working-class fans that once filled the stands in favor of the corporate elite and diluted the entertainment value of the game itself. To see the effects of these changes, one need look no further than the NFL’s biggest premier arena: the AT&T Stadium in Arlington, TX. The monster 80,000- seat home of the Dallas Cowboys holds an average ticket price of $110, not including expenses such as parking or concessions. First published in 1991, the NFL Fan Cost Index is defined as the average cost of four tickets, two beers, four soft drinks, four hot dogs, parking for one car, two game programs and two ball caps in each stadium across the NFL. The Cowboys’ arena possesses the second-highest FCI in the league at a whopping $ The league-average FCI is $ How did the NFL manage to alienate the common fan so drastically? The layout of the average stadium tells the story - the arena space is dominated by high-priced luxury boxes and suites geared toward corporate executives and wealthy businesspeople. The area of seats available to the average fan has grown smaller and been pushed closer to the field - predictably causing dramatic increases in ticket price. These price hikes have extended to the concessions areas, where the average beer at an NFL game costs $7.53 and parking costs over $30. The money-grabbing nature of the modern NFL arena is further demonstrated by the excess of bars, shops and clubs littering its concourse areas. The virtual fly-through video of New Atlanta Stadium, the Falcons’ proposed new arena, appears to be a tour of the ‘Champion’s Lounge’, ‘Founder’s Club’, ‘100 Yard Bar’ and other such extravagant destinations, with little mention of the football taking place on the field. These lavish distractions, while technically aiming to improve the ‘fan experience’, serve only to de- emphasize the football game that is supposed to be the central purpose for the stadium itself. This dilution of the game has led today’s NFL stadiums to resemble enormous, billion-dollar shopping centers rather than sports venues. By exclusively targeting upper-class patrons with increased prices and luxury bars and clubs, it has become clear that the NFL is no longer selling the game to the common fan. Nowhere is the league’s pandering to the wealthy elite more apparent than in the modern stadium. Increased emphasis on luxury suites and exclusive clubs are making football inaccessible to the vast majority of its fans. Solutions To combat the risk of losing a portion of “the average fans,” stadiums must add a mandated number of general seats for every luxury box that is created While the luxury suites generate a sizeable amount of a franchise’s total income, the diminishing amount of general seating sends a message that the average fan isn’t valued– –if teams wanted more rowdy, blue-collar fans, why would they limit space in the stadium where they can afford to sit? According to Dinces, as of 2013, there is a 15% decrease of non-premium seating in the average stadium. These two don’t need to be mutually exclusive––there is enough space in the stadium. By adding non-premium seating rather than cutting it, the NFL can all but guarantee support from the future generation––the League thrives on growing and expanding its product, which isn’t possible without the future working class. If they can’t afford/don’t have access to see a game, they may be discouraged from supporting the game. These young fans could be future players, thus allowing them sufficient access to their product would ensure support. As a related solution, franchises must find a way to create incentives for families to attend games––this could be in the form package seating deals, price reductions for food and beverages, and/or memorabilia vouchers in combination with parking tickets. Again, this allows an important demographic access to the NFL’s product, which secures future supports. The League should establish a minimum number of incentives that franchises must provide. Furthermore, the increasing disproportion of premium seating runs the risk of diluting the actual game. Fans in luxury boxes are allowed access to exclusive clubs, massive TVs, among other perks. The NFL is selling entertainment, but such entertainment is only being sold to a small, elite group of people––they risk losing the majority. Although fans in non-premium seats are getting an “unadulterated” version of the game, their presence is becoming less valued, thus an increasing number of people are seeing a diluted version of the game (from the suites). As a solution, TVs should be eliminated from the suites––fans in these sections already have an excellent view, thus the TVs are superfluous. This would shift attention away from all the “entertainment” that dilutes the game itself, and move it toward the actual game. The game is what holds an innate appeal (Oriard) and as attention diverts from this appeal, the NFL’s product will be weakened. Cost of Game for Family of 4 4 Tickets= $ Parking= $ Hot Dogs= $ Soft Drinks= $ Beers= $17.00 Total Expenses=$ “Your decision to secure a luxury suite in one of the most prestigious venues in the world can position you to attract new clients and build loyalty with your existing accounts. Beyond the premium amenities, having your company’s name on a suite makes an important statement about your success. Key prospects and valued clients will welcome access to the best sightlines and clubs in AT&T Stadium. Starting today, you can share the defining moments in Cowboys history and strengthen your business relationships in a luxury suite. It’s an investment in your company’s future that can deliver impressive returns year after year” -Dallas Cowboys Website References Dinces, Sean. “Fanfare Without the Fans.” Jacobin. Print "Fly-Through: New Atlanta Stadium." YouTube. YouTube. Web. 25 Apr Team Marketing Report Sept Team Marketing Report. Web. 23 Apr