Countering Rising Ticket Prices

Julia Boorstin of CNBC recently reported that ticket prices for sporting events rose 4.3% from January '07 to January '08 (on par with inflation). As professional sports organizations continue to charge their fans higher tags for admission, they are looking for new ways to show their existing and prospective fanbase incremental value. But who are the leaders when it comes to retaining ticket holders? Which teams are being the most proactive, strategic thinkers?

Two (2) NBA franchises have recently stepped to the forefront, offering their fanbase prizes for early ticket renewals:

• Cleveland Cavaliers
  • The Cleveland Cavaliers are offering their season ticket holder fanbase a six-week online renewal capaign. To encourage early renewals for the 2008-09 season, the team is offering exclusive prizes to fans. The earlier ticket holders commit to purchase, the more chances they have to win in the campaign. All selected winners will receive a suprise appearance by the Cavaliers Prize Patrol (cheerleaders, mascot, arena MC).
    • Prizes include: Trip for two (2) on the the team plane to a Cavs away game (Week 1), VIP floor seat experience with seats/hospitality (Week 2), two (2) round trip tickets on Continental (Week 3), Full luxury suite for a Cavs game (Week 4), autographed Lebron James jersey (Week 5), dinner for two (2) with Cavalier Legends (Week 6). Visit the Cavs website for additional details.
• Minnesota Timberwolves
  • The Timberwolves organization is offering an MVP Renewal Rewards program that awards season ticket holders with prizes based on the number of seats they purchase and how long they have had held tickets with the team.  The program's focus is to spike renewals, rewarding fans with points to redeem a collection of exclusive prizes which include dinner with the team, courtside seats, authentic jerseys, and autographed basketballs (MSP Journal 2.29.2008) Note: ticket prices will remain stagnant for '08 but the team has suffered at the gates due to poor playing performance (averaging 14,500/game - down from 16,000/game in '07). For an informational breakdown on the Timberwolves renewal incentives program, check out the team website.

These unique renewal incentives programs come at a time when many teams are increasing their ticket prices by large margins:

• The Los Angeles Dodgers raised their cheapest ballpark seats 12.5% for the 2008 MLB season. However in doing so, they chose to keep the price of Dodger Dogs the same. (CNBC 3.4.08) 
• The Detroit Lions are increasing more than 90% of their season ticket prices an average of 18% in 2008 (which is astounding!) (Detroit Free Press, 3.2.2008)
• The San Antonio Spurs are jumping the price of 1,500 tickets between 20-50% in 2008. Seating directly behind the basket (up $25 to $92/game), behind the charter seats at the end of the court (up $48 to $145/game), and corner seats (up $19 to $105/game) will all see price increases (San Antonio Express News, 3.1.2008)
• The average NBA ticket price is $48.83 (Team Marketing Report)

Comments

[Matt Schaeperkoetter]

http://www.sportsad.ohio.edu/sports/news/spec-rel/032408aab.html

The Grizzlies are doing some cool season ticket renewal prizes as well to boost renewal rates.