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TV contracts and arena pricing

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85711.1
Date: 4/13/2009 10:17:34 AM
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Here's a twofer:

1) Do the size of the TV contracts ever rise? Seems ludicrous that a Div V team gets the same as Div 1 or 2.

2) I remember reading somewhere it seemed a number of German teams (engineers?) had done a fair degree of analysis on arena pricing. Be that as it may, are there any patterns that people have noticed? How sensitive is pricing to winning? It seems to me that my fans in the bleachers are on a very limited budget; the difference between $10 and $15 tickets is about 1500 seats (out of my 5000). Is there some sort of revenue ratio that appears to be optimum -- that is, bleachers, lower tier, courtside all should produce similar levels of revenue? Or will bleachers always provide the bulk of the revenue? Would it be crazy to build a 20,000 seat arena that had 18,000 bleachers? Finally, does the fan base -- those who stick with the team through thick and thin -- become larger and / or more stable as one rises? It looks as though there is a possibility I may rise to Div III next season but I am afraid not many fans will want to watch me go 2 - 20.

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85711.2 in reply to 85711.1
Date: 4/13/2009 10:28:54 AM
Overall Posts Rated:
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1.) i believed the changed it when taxining the first div, but it is ok the first div earn enough ;)

2.)
How sensitive is pricing to winning?


don't know that we germans make a good pricing analysys, but the two cheapest categorys are very sensitive of winning and loosing the vip lounge normally get selled anyway if you on a good or bad streak.

Is there some sort of revenue ratio that appears to be optimum -- that is, bleachers, lower tier, courtside all should produce similar levels of revenue?


on the hand hand this depends on sucees so i can not give an generally advise. But the lower the prices get, it become harder/takes longer to get your investment back. So don't minize one of your categorys and try to keep your different categories in the same range of the pricing.

I may rise to Div III next season but I am afraid not many fans will want to watch me go 2 - 20.


don't be afraid a unsuccesfull team makes nearly the same money then an succesful team one league below. But if you think you getting unsuccesfull, maybe it could help to build more expensiv places, because that ones aren't that depending from succes.

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85711.3 in reply to 85711.1
Date: 4/13/2009 7:36:20 PM
Overall Posts Rated:
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i started in div 3 then was promoted to div 3 and sold out every game and went 1-21
So far this season in div 3 i'm 12 - 1 and am not selling out. id say that fan support increases as you go up there for i tend to think the same about tv. as for the stadium and tickets i have no though as of yet. i will pay more attention to it.

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85711.4 in reply to 85711.3
Date: 4/15/2009 5:27:44 PM
Overall Posts Rated:
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i've seen that when facing oppenents at your level or better than you tends to bring in the fans