SPORTS TICKETING

CHRIS STAIRS (BA, MBA)Director, Ticket SalesVancouver Organizing Committee for the

2010 Olympic & Paralympic Games

YOUR OBJECTIVES?

What do you hope to get out of this class? What are some sports marketing questions you’d

like to have answered by the end of this course? What are some questions you have about

ticketing and pricing?

CAREER OPTIONS?

What are some professions you can pursue in the realm of sports marketing?

•Media / Broadcast•Event Marketing•Event Management•Advertising•Apparel / Licensees•Community Centres / Athletics•Technology

•Franchise Management(Marketing, Sponsorship, Operations, Finance)

•Corporate Partners•Community Partners•League Offices•Sport Federations•Service Providers

SPORTS TICKETINGVancouver 2010 Winter Olympics

VANOC 2010 – Ticketing AnnouncementWhat & When?Impressions? Perception?How many tickets will be in the market?At what prices? How affordable?How many will be available to the Public?How and when will you be able to order them?

SPORTS TICKETINGVancouver 2010 Winter Olympics

2010 TICKETS – Managing the Message!FairAccessibleOnce-in-a-Life-TimeSign up at Vancouver2010.com

THE PILLARS or 4 “P’s”of MARKETING

Product

Price

Promotion

Placement

SPORTS TICKETING

LESSON TOPICS:• Defining the Product

• Pricing the Market

• Managing the Sales Process(Memphis Grizzlies Case Study)

SPORTS & SPECIAL EVENTS

WHAT ARE YOU PRICING?

TicketsFood & BeverageMerchandiseParkingPrograms / SouvenirsOther???

SPORTS TICKETINGProduct Variety

TICKET PACKAGES / BUNDLES (Pro Franchise)?Season Tickets $2,500 -- $100,000Half Seasons $1,250 -- $25,000Mini-Plans $500 -- $1,000Groups 10-20% of Single Tix PriceSingles $5 - $1,350Suites / Club Boxes $100,000 +

How Else Might Tickets Be Bundled For Sporting Events or Clubs Other Than The Big Four (NFL, NBA, NHL, MLB)? VANOC 2010?

SPORTS TICKETING

BREAK TIME….

See you in 10 Minutes

SPORTS TICKETINGPrice versus True Costs

WHAT DOES IT REALLY COST A CUSTOMER?Married couple spends a modest night at the Canucks!

Upper Deck Tickets (2) $100Parking / Transportation $5Food & Beverage $25Merchandise / Souvenir $2050/50 Draw $10

Baby-Sitter??? $30Cocktail (Before / After Event) $20

TRUE COST $210

SPORTS TICKETINGPrice versus Value

WHERE DO CUSTOMERS FIND VALUE?

Team PerformanceOff-Court / Half-Time EntertainmentGuest Service ExperienceReserved Parking!!! (The Total “Experience”)Cleanliness / Accessibility / AmenitiesExclusive Gift Items / Opportunities / Events / Signings

(T-Shirt Costs $2 to Print; Perceived to be a $20 Value)

SPORTS TICKETINGPrice Sensitivity

WHAT ARE SOME SPORTING EXAMPLES OF… Elasticity Inelasticity Unitary

WHAT ABOUT MARKET / PRODUCT SEGMENTATON? Demographics (Youth, Single Professionals, Couples, Families) Purchase Type (Domestic, Corporate, Charity, etc…) Product Type (STH, Mini-Plans, Groups, Singles, Suites…) Event Type (NFL, NBA, MLB, NHL… Other???) VANOC 2010 – Specialty Clients vs. General Public???

WHAT IS MEANT BY ELASTICITY of DEMAND?

SPORTS TICKETINGPrice Sensitivity

HOW DO YOU MEASURE PRICE SENSITIVITY?Direct Mail or Tele-Marketing SurveysFocus GroupsDemo / Psycho-graphic Studies (e.g. Scarborough)Competitor / Substitute Behavior & OptionsPast Market Models & SuccessesComparable Market Studies

No Perfect Science.

Sometimes Leagues / Owners Dictate Price Policies.

SPORTS TICKETINGPricing Objectives

WHAT CORPORATE OBJECTIVES MAY EXIST?Revenue / Profit TargetsSell-Out ObjectivesAnnual Growth TargetsCovering Operating CostsAccessibility to Market – Meeting Market DemandCommunity Service / OutreachNot-For-Profit Model

SPORTS TICKETINGPricing Methodologies

WHO MIGHT EMPLOY THE FOLLOWING METHODS?Break-EvenCost-PlusMarket Demand / What The Market Can BearCapitation Pricing

WHAT DO YOU THINK VANOC 2010 EMPLOYS?And the MEMPHIS GRIZZLIES?

Life-Time-Value of a Customer Calculation

SPORTS TICKETINGPrice & Promotions

DRIVING INVENTORY THAT DOESN’T MOVE!$5.00 Bleacher SeatsSpecial Promotions (Clip Your Hair for the Clippers)Family Days (4 tix, 4 dogs, 4 sodas for only $44)Premium Give-Away NightsTickets For Kids

What are some of your favourite promotions???

SPORTS TICKETINGSecondary Market

BROKERS & SCALPING – Good, Bad & Ugly! It’s A True Measure of Market Demand It’s Also The TRUE Measure of Market Demand

HOW CAN / DO TEAMS MITIGATE THE EFFECTS OF A SECONDARY MARKET?

SPORTS TICKETING

BREAK TIME….

See you in 10 Minutes

SPORTS TICKETINGManaging the Sales Process

CASE STUDY: MEMPHIS GRIZZLIES

NBA Sports Franchise

The Ingredients of a Sports Ticketing Operation Lessons from a Start-Up Franchise A Manager’s Road-Map

Ticketing Departments

CORE FUNCTIONS:

Sales Service Systems & Operations Research

CORE FUNCTION #1

Ticket Sales

Fill Those Seats!!! Clear Out Your Inventory! Products & Price (Full Seasons & Suites, Partials, Groups, Singles)

FSE’s (Full Season Equivalents) are your measure of success. Markets (Sponsors, Business Partners & Vendors, Corporate, Domestic,

Religious, Military, Schools, Community Groups, etc…) Sales Team (Internal, External, Tele-marketers, The “Boiler Room”)

Sales Tactics & Partners (Sponsor Bundling, In-Person Presentations, “Smile & Dial” Tele-marketing, Direct Mail, On-Line Promotions, Ticketing Partners – Ticketmaster, Advertising & PR)

Know your geographic and demographic limits. Match products to markets.

CORE FUNCTION #2

Ticket Service

It Costs Less To Keep A Client Than To Win One!

Selling Tickets Is Just the Start. Fulfilling Your Service Obligations Will Build Customer Loyalty. And You’re Only As Good As Your Word.

Renewals (Client retention is essential for a healthy franchise.)

VIP Programs (Special Discounts, Unique Opportunities, First Rights)

Value-Adds (Gifts, Sponsor-Endorsed Offers, Exclusive Events)

6th Man Program (Time on the Court, Player Interactions)

CORE FUNCTION #3Ticket Systems & Operations

You’re Only As Good As The Tools You’re Given

Ticketing Database (Inventory Mgmt, CRM, Financial Transactions, Reports)

Lead Management (List Acquisition & De-Duplication)

On-Line Interface (Messaging & Notifications, Ticket Forwarding, Self-Administered Payment Plans, Cross-Promotions with Partners,etc.)

Box Office Operations (Every Operation Requires a Face.)

Integration (Centralized Systems tied to Finance & Sponsorship)

CORE FUNCTION #4

Research

Without It, You’re Throwing Darts At A Board

Client Mailer Surveys (Season & Partial Plan Holders) In-Arena Surveys (Gauging Guest Experience& Service Satisfaction) Focus Groups (Qualitative, Face-to-Face Feedback. It only takes a few.) General Market Studies (Measuring Preferences & Behaviour) Year-End Reports (Building a Library of Statistical Benchmarks)

Strategic Integration

Ticketing Sponsorship Merchandising Food & Beverage Parking

Marketing & Promotions Broadcast Media Relations Community Outreach Guest Relations

Ticketing is only one of multiple functions in a typical sports franchise. All functions should serve to support one another in their goals of revenue generation, service, promotion of sport, community outreach, etc.

THANK YOU!For your time

I would be happy to take questions…

Chris Stairs, MBA

Director of Ticket Sales

VANOC 2010

www.vancouver2010.com