Maximizing Revenue with Analytics

Class Overview 1 How Do Sports Organizations Make Money? Examining the five primary sources of revenue. How Can Sports Organizations Make More Money Using new strategy 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 Analytics Media Television Digital Mobile Sponsorship Team Sponsorship League Sponsorship Events Venue Audience Appreciation Merchandise Apparel Subsidies Revenue Sharing Government Funding The sports industry is a $750 billion per year business. Revenues break down into five 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

Increasing Revenue – Audience Monetization 7 Case Study – Dayton Dragons

What Happens When Organization Tie Winning To Business? 8 Separate And Unequal Team operations and business development operate in completely separate silos Most employees in sports organizations’ have little direct impact on winning Pay For Performance Price increases in ticket sales, media, and sponsorship are expected to be tied to performance Business Successful companies outside the sports organization do not hinge their performance solely on one type of product outcome Products do not drive profits and decision making