2008 presentation on ticket sales and operations

1. Chapter 9
Ticket Sales and Operations

2.  Examines the issues that sports managers face with respect to
selling and pricing tickets for sporting events.
 It is estimated that U.S. consumers spend $12 billion a year on
tickets for sporting events
 Ticket sales are the biggest sources of revenue for minor league
baseball who rely on their fans as well as for Div. I collegiate
athletics (27%).
 In 2002, Michigan and Ohio State earned approximately $28
million for each athletic department from ticket sales alone.
 From 1991-2000, ticket prices for all the major leagues grew at
an annual rate of 8.4%, so that gate receipts more than doubled
over that time period.
 During 2001-2002 attendance among the four major sports
leagues diminished due to a slowing economy and increased
competition from the entertainment industry.
Intro/ Admission Pricing

3.  The increase in ticket prices make it more likely for fans to
substitute attending games for more less expensive
entertainment options.
 The pricing approach of most sports teams is cost oriented
 In 2001, 23 MLB teams increased ticket prices and of those 23
teams 15 lost attendance during that season.
 With the large dependence on football revenues, most schools
competing in the larger conferences (Big 12, Big 10, SEC, PAC
10) have developed “priority seating” programs. This ties
preferred seating locations within the stadium to extra donations
to that schools athletic department. This was first introduced in
the 1980’s, and has grown over the years to the point where 90%
of Div. IA schools currently employ the concept.
 These “privileged seats” may cost a season ticket holder
anywhere from $5,000-$10,000 for two season tickets.

4. Pricing Tickets for Sporting
Events

5. Tactics for Improving Ticket Sales/
web-based ticketing sales
 Ticket sales are used for many different things:
 Revenue Production (large sport businesses)
 Non-monetary outcomes – building community support/
involvement (small colleges)
 Differential Pricing
 Flexible Ticket Packaging
 Money-Back Guarantee
 WEB BASED TICKET SALES
 Main point – All parties benefit from a web-based ticket program

6. Organizing Ticket Sales
 Types of Tickets:
 Full season
 Tickets bought for complete season
 Partial Season
 Tickets bought only for part of a season/ certain # amount
of fames
 Individual Game
 Ticket per game
 Complimentary
 “Comps”/ group or individual tickets at no cost to consumer
 Student
 Specific tickets at discounted or other different regulations
for students

7. Preseason Sales
 Different start dates for different teams
depending on organization
 Should have all tickets printed, seats
assigned, orders recorded, etc. before
season starts
 Organizations should take advantage of new
additions, fan enthusiasm, changes in team,
etc. to sell more tickets

8. Methods of Selling
 Direct Mail
 Follow-up Phone Calls
 Telemarketing
 Direct Sales
 Outlets
 E-ticketing

9. In-Season Sales
 Once a season starts, ticket offices know
what tickets they have left over. They then
sell them by:
 Group sales
 Consignment
 Discounts
 Complimentary admission
 Giveaways

10. Account Systems
 Computerized ticketing
 The sophistication of computerization in ticket offices has increased over the
past 15 years.
 For every Sport Management major they should have a personal computer.
 Because with a personal computer, even a small sport organization can
purchase relatively inexpensive.
 Printing
 Tickets may be printed by an outside company or by the ticket office.
 Season Tickets
 Accounting Procedures for Ticket Revenue
 The ticket office receives payments throughout the year and has a system to
maintain accurate records of receipts, deposits, and accounts receivable.
 Fans order tickets without immediate pay.

11.  Ticket Records
 The ticket office maintains records to account for every ticket.
 Game Day
 Pre-game preparations
 Many preparations are done before the ticket windows are opened.
 During Game
 Although game day is difficult for the ticket office, there are strategies to help
the operation run smoothly.
 Post-game
 The job is not done yet.
 The office checks the ticket sales and receipts for each seller to make sure
his or hers records are accurate.
 Attendance
 Post-game reconciliation

12. Summary
 Consumers in the United States spend almost 12
billion dollars a year buying tickets to sporting
events.
 Economic Recession of the early 20’s
 Erosion
 Cost of ticket
 Internet Ticketing