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MARCH 29, 2002 Wayne Lloyd Ed Fussell Brandon Hartley Jay Moore Marshall Nicholson

MARCH 29, 2002 Wayne Lloyd Ed Fussell Brandon Hartley Jay Moore Marshall Nicholson Agenda Background Alternatives Assumptions Stadium Comparisons Market Info / Demographics Recommendation Background Dome built in 1992, owned by Georgia World Congress Center Authority

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MARCH 29, 2002 Wayne Lloyd Ed Fussell Brandon Hartley Jay Moore Marshall Nicholson

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  1. MARCH 29, 2002 Wayne Lloyd Ed Fussell Brandon Hartley Jay Moore Marshall Nicholson

  2. Agenda • Background • Alternatives • Assumptions • Stadium Comparisons • Market Info / Demographics • Recommendation

  3. Background • Dome built in 1992, owned by Georgia World Congress Center Authority • Seats 71,228 for Falcons Games, On- site Parking for 3,260; Mostly in Contained Garages • Attendance Averages 54,845 per Game • Dome Contract was League Best in 1992, but the $4 Million Fixed is Paltry in Comparison with Newer Contracts, Which are Tens of Millions Richer. Hard to Stay Competitive

  4. Background • Falcon’s Are Saddled with “Loser” Image, Fan Apathy • Lack of Tailgate Friendly Parking= Loss of “Experience” • NFL is Wholly in Control of Many Operational Issues like Licensing, Advertising Partnerships, and Broadcasting.

  5. Alternatives • Vary Pricing Gradients to maximize revenue streams from most profitable customers and attract more marginal fans • Pursue new stadium contract; capitalize on “mad money” • Do nothing, hope charismatic new management is enough to generate renewed interest

  6. Assumptions • Current Stadium Contract Cannot be Renegotiated • Economic Climate Will not Allow for New Stadium to be Built • Need to Strengthen Revenue Streams Before New, High Profile Players can be Brought In • There are Slack Demands for Mezzanine and Upper Level Tickets and Excess Demand for Luxury Boxes and Club Level Seating • Must Sellout Games to get Television Exposure Necessary to Advertise Product and Create/Develop Fan Base

  7. Stadium Comparisons

  8. Attendance Attended an NFL Game in past 12 months Source: Scarborough Research (Feb. 2000 – Jan. 2001)

  9. Local Market Ratings 2000 Team Television Ratings - Local Market Averages Source: A.C. Nielsen

  10. NFL Fan - Support Index(1991 - 2000) A study was conducted by American City Business Journal (ACBJ) which measures fan support on seven categories. This is an excerpt from the ACBJ Research Report: Score - Measure of each team’s fan support on a 100-point scale. Support factors account for 60% of each team’s overall score. Difficulty factors account for the other 40%. Teams less than 7 years old have their scores cut on a sliding scale. Rank - Overall rank of NFL teams with the best fans. Source: ACBJ Research Report/Street & Smith’s Sports Business Journal

  11. What do NFL Fans Love About the NFL? • AVID FANS • Fierce Competition • Unifying Aspects of Game Day Experience • History and Tradition • Emotional Highs and Lows • CASUAL FANS • Pageantry and Entertainment • Social Aspects of Game Day Experience • Strength and Athleticism Source: Ross, Cooper, Lund, 1995

  12. Market and Avid NFL FanProfile Summary Sheet Source: ESPN Sports Poll May 2000 - April 2001

  13. Market and Avid NFL FanProfile Summary Sheet Source: ESPN Sports Poll May 2000 - April 2001

  14. Attended Falcons Summary Sheet 18+ Population Source: Scarborough Research (Feb. 2000 – Jan. 2001)

  15. Atlanta Market Common Lifestyle Clusters Common Lifestyle Clusters between Watch any NFL and Attend any NFL: The lifestyle clusters that represent the best opportunities are bolded as they appear in both categories (watch & attend). Penetration - Of people who watch, 42% fall into the Cultural Aficionado lifestyle cluster. Index - Of people who watch, they are 64% more likely to fall into Sports Fanatic lifestyle cluster. See the Appendix for the definitions of each lifestyle cluster. Source: USA Data (August 1999 - July 2000)

  16. Atlanta Market Attend any NFL Top 5 Lifestyle Clusters: • The Restaurant Goer cluster is the best opportunity if Atlanta is trying to target the largest segment of attendees. (by penetration) • The Movie Buff cluster represents the best leverage point to gain attendees. (by index) See the Appendix for the definitions of each lifestyle cluster. Source: USA Data (August 1999 - July 2000)

  17. BLACKOUT FOR ADVERTISING

  18. PRICING GRADIENT ADJUSTMENT

  19. Ancillary Revenue-Concessions Assuming $18.56 per Seat Concession Revenues, the Proposed Pricing Schedule and Resulting Improved Attendance Would Contribute Approximately $1,920,000 to Concession Revenues Over the Season!

  20. Recommendation-Pricing • Divide Current 3-tier Ticket Pricing to More Effectively Target Audience; Suggest 6 Levels of Ticket Pricing • $5 Markup on All Ticket Prices for New Orleans, Carolina, Tampa Bay, and Previous Year’s Conference Champion

  21. Recommendation-Seating • Raise Prices of Boxes $10,000: Additional $203,000 per Game • Raise Prices of Club Level Seating $100: Additional $460,000 per Game • Lump In a Block of 30 Tickets in Least Desirable (Upper Level End Zone) Sections with Box Contract; Guarantees Sale of 6090 Hard-Sell Tickets • Block Out 6000 Seats (3000 in Each End Zone), Drops Capacity to 65,228.

  22. Recommendation-Experience • Implement a Revenue Management Database to Track Customer Base. Particular Needs are Proximity of Gate Sales to Kickoff and Location of Purchaser’s Residence Relative to Downtown • Based on this Data, Explore Alternative Promotions/ Delivery Channels to Ensure Television Exposure, as Well as Customize “Experience” for Those Who Attend • Partner with Entities Around Perimeter for “Park and Ride” Opportunities to Drum Up Sense of Community and Heighten “Experience” • Lower Level End Zone Club (i.e. “Dirty Birds”) -Target Beer Drinking Demographic (Group Pricing?)

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