50% of NFL Teams Using Dynamic Pricing, Balance Value Season Ticket Holders
Dynamic pricing models are becoming commonplace in sports, with 16 NFL teams modifying ticket prices based on a variety of factors (market, opponent, weather etc.), in real-time, during the 2017 season. Both Pro and College sports teams are using variations of the model to fill seats; encouraging fans to purchase tickets to less desirable games by offering them at a lower price point. Dynamic plans also incentivize season ticket subscriptions, ensuring fan entry to the most coveted games at a fixed price. Those that oppose the model feel it’s unfair to sell tickets below the price paid by the franchise’s most loyal fans, the season ticket holder.
Howie Long-Short: Teams that use dynamic pricing models can take a share of secondary market sales. They can also respond to unexpected changes in the market (i.e. player is about to set record); using platforms like Digonex, to ensure they set the right price at the right time. Emmis Communications Corp. acquired controlling interest (51%) in Digonex back in 2014 (in a deal worth $5 million). Emmis is a public company, traded under the symbol EMMS.
Fan Marino: The Carolina Hurricanes value maximizing revenue (and season ticket holders) over attendance figures; cutting down on the number of discounted tickets sold and complimentary tickets offered (4,000 in ’14 to 1,000 this season). Team President Don Waddell has said that season ticket holders who’ve chosen not to renew during his tenure have done so because of the “people sitting next to them for free and the people sitting next to them with real cheap tickets.” The decision seems to be paying off, albeit slowly; the team has increased its season ticket holder base (from 7,000 to 7,300).
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