Today • Quiz Recap • Discuss the buyers of season tickets and premium seating • Examine trends and opportunities in premium seating • Terminology
Nippert Video Luxury Suites • Luxury suites are the original premium seating set-up • Come in various sizes and variety depending on venue • Typical levels: 12-person, 20-person, 50-person party size • Generally leased for long-term commitments • “UC sold all 18 Founder’s Suites…during the silent phase of fundraising for the project. Each cost $100,000 a year and required a 10-year commitment” Nippert Renovations
Clubs and VIP Clubs • Club seating • Make up 60% of premium seating revenue • Can be individual or group • Can be access to a party room, special dining area • VIP Club (newer segment of Club seating) • Limited membership area • Similar amenities to a suite, but with less commitment • Not necessarily tied to seating area • Food and drink usually included Clevelander
What are the most expensive seats in a stadium/arena? What are the cheapest?
Field Level/Courtside & Special Sections • Field level or Court side seats • Traditionally most expensive seats (prior to luxury suites) • Often comes with upgraded (cushioned) seats, and extra amenities • May include access to club • Special sections • Each team or venue may build in a unique stadium feature and offer seating at a premium price
Who buys season tickets? &Why? Who buys premium seats? &Why?
Season Tickets & PSLs • Benefits of buying season tickets (generally) • Lower cost per game • Incentives (e.g., free parking, exclusive events, swag) • Incentives are usually used to upsell (e.g., Cavs home opener) • Personal Seat Licenses (PSL) • Many venues require season ticket buyers to purchase the right to buy those tickets through a personal seat license • PSLs are a one-time purchase that usually last for as long as that team plays in that venue • Can usually be sold to others, but may be forfeited if rights holder doesn’t buy seats
90% of luxury suites are owned by corporations • 25% reduction in corporate spending on hospitality • 25% of seating in new venue construction is premium seating Stats & Trends Met Life Stadium opened in 2010 with 218 luxury suites, ranging in price from $150,000 to $1million annually
“they differentiate that suite from any other suite in the venue. It looks different, feels different and in some cases, depending upon the product(s) of its owner, will smell and/or taste different.” Bill Sutton Argument for paradigm shift: Many companies have been switching to single-game or partial suite plans, often through the secondary market
Take away • Biggest buyers of season tickets are individuals and corporations • Larger corporations are primary client for premium seats, mostly to serve business functions such as hospitality • Through creativity, teams can turn cheap seating areas into big sources of revenue • Incentives are often needed, or can make a big impact in convincing individuals to purchase season tickets over individual game packs • Each company/individual has individual needs, and each market is different