Monday, June 10, 2013

How New Stadiums are Like Theme Parks

We know what happens when you build a beautiful new facility.  Fans rejoice; media swoon; attendance soars.

But I'm not talking about baseball stadiums in this case; I'm talking about theme parks.

Last week, Disney World, Universal Orlando, Busch Gardens, and Sea World all announced new price increases that make even expensive trips to the ballpark seem affordable.  Here's a great price graph of theme park prices from USA Today.

Most of the time, theme parks attribute the increases to new improvements and construction that "improve the value of a ticket."  But this comes even as theme parks set record attendance levels, so it would seem the corporations are making the moves to increase profit margins, rather than simply just maintain them.  And in many ways, it's the same way baseball teams operate.

Even though new stadiums will boost attendance numbers, much of the increased revenue they provide comes in the form of higher ticket prices.

In the Rays' situation, we can all acknowledge - all things being equal - a stadium in Downtown Tampa would draw better than a stadium in Downtown St. Pete.  I admit I'd go to more games too.

But what if the Tampa option came with higher ticket prices (which every new MLB stadium has)?

Would you start losing families that go to the Trop because it's so affordable?

Fans can hold out hope that the Rays would keep their lower-level seats affordable, but when franchise owners talk about "new revenue streams" associated with new ballparks, what they really mean, as John Henry explained last year, is "higher ticket prices":
"New stadiums that are publicly financed make sense for clubs. I've never heard of a club turning down a publicly financed stadium. But privately carrying new stadiums is an enormous challenge.

"New stadiums increase revenues primarily by raising ticket prices — especially premium seating.

"In America, as an example, 3 NFL (American football) clubs have moved into new stadiums over the past 3 years. The New York Jets average ticket price rose by 32% when they moved into their new stadium. The New York Giants rose by 26% and the Dallas Cowboys rose by 31%. In baseball, ticket prices rose 76% when the New York Yankees moved into their new stadium 3 years ago."

14 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. Also, as far as FUN, ballparks needs to be like "theme parks" to keep'em coming 81 times a year, unlike most other sports besides golf...

    ReplyDelete
  3. Move those Rays out of nasty ST.PETE!!!!!

    ReplyDelete
    Replies
    1. Nice immature comment "anonymous". IDK, how much you get around St. Pete or out of this area, but there's a lot of St.Pete that is nicer then most other cities in America. Though you probably don't know, it's not about St. Pete being bad, it's just that St.Pete has a smaller & declining population then the years prior to the 90's, and Tampa is growing leaps & bounds, and Tampa's Channelside district is "the next big thing" in Florida. To your point, I would say Tampa has a lot more grimmier then St.Pete

      Delete
  4. The price increases at theme parks are barely keeping up with inflation. Not to say that it's a cheap trip for a family to Disney or Busch Gardens, but bumping by 5% every few years is to be expected in any business, it seems.

    ReplyDelete
    Replies
    1. Actually, Disney's prices have climbed by 3x the inflation rate over the past 30 years.

      Delete
  5. LOL, what a joke Noah, it must be the Boston in you. I love all your "smear campaign", and "scare tactics", and please don't be mad I see through you. Either you don't know or you simply have motives to write things they way you do, but newsflash! your numbers skewed. Yes, overall the ticket prices will increase with a new ballpark, but that's only because of the nicer "luxury" boxes, and club seats that will be more, which is why the Rays want a new ballpark, to make more money, to spend more on the field, to win more. BUT! You'll still be able (like ALL other new ballparks), (and like the Jacksonville Jaguars new ticket price increases where on average their tickets will increase %2, 80-percent of the stadium will stay the same. 17-percent of highly popular areas will see price increases, and 3-percent of ticket prices will decrease.) get tix less then $20 @ the NEW Trop @ Channleside, and some closer to $10 then $20 like now. You can get Yankees tix at the door for less then $20, you can get tix to Arizona's retractable roof stadium for only $11, $10 to see the a game @ Nationals new ballpark, Seattle's nice new tractable roof stadium for only $9, or Miami Marlins new retractable roof park with many of options for less then $20. SOOOO what's your point? And, please don't compare apples & oranges with tix to a MLB & NFL, that's not good "journalism"...

    ReplyDelete
    Replies
    1. And I love your participation - keep reading Dufala!

      By the way, I'll post an update if you find me a new MLB stadium that didn't raise ticket prices on grandstand seats.

      Delete
    2. ? If you want lower then $9 & $10 tickets like the ones you can buy at most of these new & old ballparks then you have a issue. And, if you have beef with the Rays because the cost of luxury & club seats would be more @ a state of the art ballpark then they are @ the Trop then again, you have issues...

      Delete
    3. IDK why I debate you. I have a good friend from Boston, and he, like everyone else from Bahstun including you are impossible, and stuck in ways. They all think their always right, and better then everyone...

      Delete
    4. Again, find me a team that didn't raise grandstand ticket prices in a new stadium. I'm not talking club seats....I'm talking normal seats.

      Delete
  6. Bizarre that Mr. Dufala disputes there would be higher ticket prices at a new stadium. After all, it does have to be paid for, doesn't it? In addition to higher ticket prices, parking, concessions, etc. will all be more expensive. That doesn't make a new stadium a bad idea. It simply means we should enter the discussion with our eyes open.

    That one can get heavily discounted ticket prices "at the door" is only indicative of baseball's ongoing attendance problem, a fact those of us in much maligned Tampa Bay should actually take some solace in.

    ReplyDelete
    Replies
    1. I didn't dispute there would be higher tix prices. If you read my post, you would of read I said "Yes, overall the ticket prices will increase with a new ballpark, but that's only because of the nicer "luxury" boxes, and club seats that will be more", meaning a small portion of the overall seats would increase, and most would stay about the same, but because those that increase are the expensive seats, it increases the OVERALL AVERAGE cost of tix. Though it should be more expensive for "luxury & club seats" @ the new Trop then @ the Trop in St.Pete, I'm not for the outrageous prices for food & drinks which more controlled by a separate company called CenterPlate then the Rays...

      Delete
  7. If it's pubically financed, why would the owners need to increase prices? Exactly...Greed.

    ReplyDelete