Rainmen Ticket Prices

Interesting article in the March 2 issue of Canadian Business: “All Seats Must Go”. The subtitle is “Slashing ticket prices in the short term may attract more fans, but not in the long run.” The article by Andy Holloway is about the NHL, but I think it is relevant for all pro sports teams, especially in today’s economic climate. A lengthy excerpt:

“The NHL, unlike North America’s other three big sports leagues, doesn’t have a lucrative television deal. It’s still a ticket-driven business, with roughly 55% of revenue coming from getting paying bums in seats, so the temptation will be to cut prices if people stop going to the games. But while lowering prices midway through the season — or offering special deals, such as free concessions, parking or merchandise — might attract some, it could also adversely affect the team’s existing relationship with season ticket-holders or fans who bought tickets in advance. ‘You have to keep the integrity of season tickets’, says Doug MacLean, a former NHL general manager and currently an analyst on Sportsnet’s ‘Hockeycentral Tonight’.”

“Someone who has plunked down $25,000 for a pair of season tickets isn’t going to be happy when he starts to realize his seat neighbour is paying far less. The security of having tickets to the big games in advance only goes so far. Not only that, the number of annual paying customers is a key metric for improving other revenue streams. ‘The value of the ticket is very important in selling your franchise to corporate sponsors and radio and television,’ says MacLean.”

“Then again, if the number of empty seats continues to grow, concession sales suffer and corporate sponsors may start wondering why they’re spending any money at the arena at all.”

These are all points that have been brought up over the past season. Ticket price integrity is important to season ticket-holders. While the Rainmen front office has been responsive to some ideas, such as including season ticket-holders in BOGO, this article may give them some food for thought.