We focus on the application of business practices to operate a successful sports organization. For this special blog, topics emphasized are promotion in sport, sport marketing, the development of sport marketing plan, financing a sports organization, sport sponsorships, sales application to the sport industry will be emphasized.

Thursday, September 08, 2005

Post your critique and opinions about your weekly article here!

Guys,

Here is the place you need to post your weekly article critique.

"Minors Score With Big Sales" vol.8 issue 17,p.9 by Kevin Conlon


This article goes in depth and discusses the recent popularity increase in minor league baseball. There has been a major increase in not only ticket sales, but in merchandise sales as well.

According to the article, the total income of merchandise as of June of this season was 28.9 million, if this pace keeps up, this will be the sixth consecutive season in which an increase in merchandise revenue has shown.

So, the question is why are the sales of minor league merchandise increasing so consistently?

The article suggests a few reasons. First, major league players are more regularly appearing in minor league games to complete rehab assignments. These games allow for major leaguers to get back in shape after an injury, without actually playing a major league game. With the influx of big league stars to minor league teams, a lot more exposure is given, and fans see these unique minor league clubs.

Second, the minor league teams have much more unique mascots, colors, teams names, etc. mascots like the muckdogs, the lug nuts, the diamond jaxx, and many others give teams more originality, and allow for many different and exciting merchandise ideas.

My hometown of Altoona, PA is home to a AA minor league team, the Altoona Curve. The name is unique, the colors (green, maroon, black, white) and unique, and the merchandise sold is unique. I can definetely say that Curve gear is just as nice, and in some cases nicer, than much of the major league merchandise I see at stores.

Minor league games are also a fun atmosphere, the games are more family oriented, and they definitely provide a place to go and relax with your friends, and you don't have to pay an arm and a leg to get a ticket. I've seen some Pittsburgh Pirate players rehab with the Curve, and its fun to see the minor league team get that exposure.

Perhaps the major leagues could take a lesson from the minors in terms of game atmosphere, and fun merchandise. The article says that "why buy a hat with NY on it, when you can buy a hat with a character on it." Perhaps more characters and more fun could help popularity in the majors as well.

Wednesday, September 07, 2005

“Yankees’ food up for bid” by Dave Andrews (Volume 8, issue 16)


The New York Yankees, one of baseballs premier teams is about to build and open a new baseball facility in 2009. One of the major concerns for the team is the proper funding that would be necessary to help the completion of this project. One way to properly fund the project is the bidding of concessions throughout the entire stadium. For the first time in forty years the Yankees are taking bids from major companies who want to sell food and merchandise from inside Yankee Stadium. The one major factor is price; the price of admission into the new $800 million Yankee home is $50 million upfront from the winning bidder! This would be for a ten year contract starting in 2009, carrying through the 2018 season. This is a very unusually high number to ask for, but than again, we are talking about the New York Yankees who generated $62.7 million in just food and retail revenue with a $17.27 per cap last season. The next team who compares to the Yankee’s food and retail income generated a mere $20 million less with a $14.77 per cap.

The Yankees can demand such high amounts from bidders because of “who they are and the prices they can charge.” They get the best players known to baseball; have winning seasons each and every year and sellout the stadium more times than any other team. This is not to mention the television attention they receive from owning their own broadcast station as well as ESPN rights. They are “America’s Team” in the baseball aspect; therefore, they can demand pretty much anything they want and will receive it!

Tuesday, September 06, 2005

"WNBA looks for answers to attendance dip" (Volume 8 Issue 18)


If you were Donna Orender, what's your marketing plan? Any strategies you can apply from the sport industry segment model?