Discussion Response Assignments | Online Homework Help
Read each discussion 1-4 and then write a 200 word response for each.
With your response, you can either expand on the initial post with similar, formally cited, specific examples or additional information regarding the original example(s) (be sure the additional information isn’t simply a re-statement of what has already been posted) or you can respond with a well-supported (based on formally cited information) counter point.
Response should have 1 source for each discussion
- 1. A message in sports is brought to sports economists in Jeremiah 29:11. This verse states, “For I know the plans I have for you, declares the Lord, plans for welfare and not for evil, to give you a future and a hope” (Jeremiah 29:11, ESV). This verse implies that God gives us everything that we need in the sporting world to be successful. For a sports economist, this includes everything to manage a good inventory and revenue stream for any given facility.
One example of a facility that God gives us to create a good inventory and/or revenue stream is the home of the Cleveland Indians, Progressive Fields. By looking at the basic information, there is a lot of stuff that they do right in regarding there inventory and revenue stream. The first is selling their seats, correctly. This occurs by them selling better seats for more and worse seats for less in a given game (Cornell, 2013). This is shown by upper bleacher seats being $17; worse seat, to diamond box front row seats being $143; best seats (MLB Advanced Media, 2019). This shows that the Cleveland Indians are using the space in Progressive Field well by having space that is much better, priced more (Cornell, 2013).
The second example is using the space outside of baseball activities, such as renting space for business meetings, parking space, parties, and so on (Cornell, 2013). This is an area that the sporting facility of Progressive Fields does well. This is accomplished through requesting this occurrence through a team official, which a $500 non-refundable deposit on a first-come first-basis (MLB Advanced Media, 2019). This helps use the space more wisely. This occurs by having another revenue source of income, in addition to not having a lack of empty space in the offseason (Cornell, 2013).
Besides the stuff that the home of the Cleveland Indians, Progressive Field does well, there is one thing that needs to improve. The one thing that Progressive Fields needs to improve on is using the space more often in the idle time (Cornell, 2013). There are two distinct ways to improve the use of the space, in order to gain revenue. The first is mentioned above through renting out space in the winter for business meetings and/or other events (Cornell, 2013). The second idea is going back to events in the past, like “Snow Days”. These events consist of ice hockey matches and sled riding (Badger, 2011). This helps use the area more wisely by giving more inventory and revenue sources on just in the regular season, but offseason as well.
- The East Tennessee State University football team, while being a program that is in its third year after a long hiatus, has a well-run and eventful setup at their games. They are able to generate revenue, from what I could see as an outsider, by selling box seats, selling “bricks” that adorn the donor’s name, and by filling their small stadium. These revenue sources are great because it allows for consumers (the football and school fans) to purchase extra services and additions while they are at the stadium (Revenue, 2013). Box seats seemed to always be filled at the games I attended, mainly by executives and well-known people in the small community. It helps that there is a major health system centered in Johnson City and ETSU and the hospital system have close ties in regards to fundraising efforts and using each other as an avenue for careers after completing nursing and medical schools (for example). In addition to the box seats, bricks were used as prizes for donors to the school and football program. These bricks were inscribed with the names of the donors and laid into the ground in a designated area near the football stadium. Lastly, by promoting the football team well (as it seemed, at least) they were able to fill the stadium to capacity on most gamedays. This allowed for revenue to be generated and hopefully afford the school the ability to upsell their fans once they reach the stadium.
On the other hand, I believe there could have been some opportunities that are being missed by ETSU and their sport management team. For instance, there didn’t seem to be any form of way to grab leads from prospective customers. Being a new program, it seems likely that their pool of leads may not be sufficient to grow into a larger revenue-generating venture. Something as simple as having a drawing for a free t-shirt or ticket to a future game in exchange for providing a phone number and e-mail address could be just what they need. That will allow for future marketing toward multi-game and season ticket packages. Additionally, ETSU lacked signage and promotional items strewn around campus and without any sort of way of knowing that there is a game occurring then the student body may not have an understanding. It is understood that tickets to games can serve as experience goods, something that our generation seems to value highly, and this can be a very marketable approach (Veeraraghvan & Vaidyanathan, 2011). As 2 Corinthians 9:6 states, “The point is this: whoever sows sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully” (ESV).
- Working for the Tampa Bay Buccaneers over the last couple of seasons I have been able to go to multiple stadiums across the US. The stadium that consistently sticks out in my mind is the Atlanta Falcons new stadium. Some people would argue that the stadium sticks out in their mind because of the looks and creation, but it sticks out to me because of the fan experience that they are giving people.
When Arthur Blank created the new stadium, he had it is his mind that he would create a better atmosphere for the fans. He wanted to bring fans back to the stadiums, so he created a new model that feeds into this weeks discussion about inventory and revenue. Because of his model, the “team saw direct monetary benefits from this innovative approach to food and beverages (in the form of a 16% increase in fan spending on F&B despite a 50% price reduction compared with their last season in the Georgia Dome.)” (Rishe, 2018)
His model worked so well, that they are cutting prices again this year to try and attract more people to the stadiums. This is all because of inventory and revenue. The stadium is going through more inventory because the prices are lower and in return can cause lower costs up from because you are buying more each purchase and on the back end, because you are going threw more inventory, you have less spoilage because it is not sitting there as long, once again cutting cost. Because of these two things, “As part of MBS’s year-two success, stadium executives created operational efficiencies that further helped to improved bottom line margins by 15 percent over 2017 without raising prices, and while offering reduced prices on six concession items in 2018.” (Mercedes Stadium, 2019).
Sometimes, larger prices do not always equal larger profits and this model proves it. This model is working so well that there are many stadiums that are looking at moving towards the exact same thing. They want to see if their stadium can create the same profit for themselves while helping out the Then he said to them, “Watch out! Be on your guard against all kinds of greed; a man’s life does not consist in the abundance of his possessions.” (12:15) Greed is a dangerous thing and can hurt many people as sports teams have noticed over the past 10 years as their attendance has dropped because they continued to raise prices. I hope this model sticks and more and more stadiums do the same.
- A stadium that I just recently visited was the “The Diamond” in Richmond, VA. This is the closest venue and sports facility that we have to a professional team since we don’t have one. The Richmond Flying Squirrels are a double A-team for the San Francisco Giants. They usually have a few good years and then a few bad years, but recently it’s been every other year type of thing between a winning season or a losing season. The playing field and the venue have not gone through significant upgrades as they have just done minor things to the site and the stadium. One of the significant changes that I have seen is in the number of people that go to the games.
Back when we had the Richmond Braves before they moved the stadium used to be packed until the end when people stopped going to the games. When the Flying Squirrels came here, the same thing continued to happen. The idea is though is that they had the second highest total in the “Eastern League Attendance for 2018 at 396,686.” (Eastern League Attendance | Richmond Flying Squirrels Stats) for attendance. The more surprising thing was that they averaged the most fans in the stadium at “6,198 people per game” (Eastern League Attendance | Richmond Flying Squirrels Stats). The problem I notice while I was at the games as I have gone to a few this year and last year the stadium is not full like they say it is. Most to the seats are bought by season ticket holders each year and never come to the games. That’s how they get a lot of their revenue through ticket sales.
Also, they “installing advertising banners over 2,574 seats” (O’Connor, 2018), which gives them “about $25,000 apiece annually” (O’Connor, 2018). This is a good revenue stream for them as it allows them to get more money to come in. Another great way that the Richmond Flying Squirrels get a good amount of the revenue is by promotions. Even though it costs money, it brings in more fans. “The Richmond Flying Squirrels, Double-A affiliate of the San Francisco Giants, unveiled their most loaded promotional schedule in team history” (Flying Squirrels Unveil Fully Loaded Promotional Schedule, 2017). It says that their “schedule boasts a record 36 giveaway items” (Flying Squirrels Unveil Fully Loaded Promotional Schedule, 2017). They have to make sure they balance out the way they lose money with the way they gain money but make sure they are still making a profit, in the end, to be successful. Psalm 37:4 says, “Take delight in the LORD, and he will give you the desires of your heart” (Psalm 37:4, New International Version).
DUE Thursday May 9, 2019