Do MLB giveaways and special events influence attendance?

Do MLB giveaways and special events influence attendance?
by Kirk Wakefield – October 2018

Forbes reported before the 2018 season started that clubs planned over 1800 special event promotions, including about 28 giveaways per team on average. The Cardinals (49), Dodgers (42), and Cubs (41) all topped 40 giveaways. The Marlins (11), Athletics (14), and Diamondbacks (15) were the least giving. If you’re already seeing a pattern, you may be onto something.

Not everyone follows MLB attendance with the same passion as I do. I’ve been tracking and analyzing MLB attendance trends decade by decade since 1990. In the 1990s and early 2000s, it was the rash of new stadiums drawing fans to the game. As we move into the current decade, the strongest predictor of attendance is the presence of star players (represented by total payroll) and the fact that each new year brings overall lower attendance. Winning has always been important, but always behind star power and stadium-related factors (including capacity). Ticket prices, as we’ll see shortly, rarely influence annual attendance. Instead, we can reliably predict next year’s prices based on this year’s attendance.

What about giveaways and special events?

We don’t have historical, annual data on the number of giveaways and special events offered by team. But, thanks to Forbes, we have them for 2018.

It’s not enough to ask, “Are more giveaways and special events correlated with attendance?” You must account for anything else that might influence attendance. Thankfully we did this for you.

To explain average attendance (right) we include the following factors for each team:

  1. Total payroll in dollars
  2. Won/loss percentage
  3. Stadium capacity
  4. Special Events
  5. Giveaways
  6. Population/Franchise Index 1
  • Fan Cost Index (see Team Marketing)
  • Park factors: Runs scored; Home runs

 

The results

We can explain 91.3% of the variance in attendance with these factors. If you think that is high, you are correct. We rarely explain over 90% of anything. If you’d like to play with the data yourself, click here to download. 2

We numbered the factors above for a reason. They represent, in order, those factors with the most influence on attendance. Total payroll (B = .411), winning (B = .328), and size of the stadium (B = .313; i.e., bigger stadiums like the Yankees and Dodgers) each strongly predict average attendance.

Special events (B = .224) and giveaways (B = .198) significantly influence attendance (p < .05). But, not so fast. We took a deeper dive on the relationship of giveaways on attendance. The relationship is not linear.


As most readers likely guessed, what we see is the classic sideways-S curve of a cubic function. Ok, maybe you don’t hit these kinds of curves very well. But, you can see from the graph that teams offering few giveaways (e.g., Marlins and A’s) fared poorly.  As teams offer 10-20 giveaways, attendance increases. However, the dip in the curve shows a good many teams with 20-40 giveaways actually decrease in attendance. This is bad.

What is good? Going all out. The teams offering 40 or more fared very well. This finding is consistent with the philosophy of making the big even bigger. Rather than using promotions only to shore up lousy games, make the big game weekends too big to ignore. The spillover excitement offers a windfall to attendance overall.

What is better? More giveaways and special events give fans more reasons to go. Without, you’re just selling baseball. With, you’re selling entertainment. Want baseball fans to bring less motivated family members and friends? Give them a reason. Many reasons.

The unconvinced are saying, well, those are the Dodgers, Cubs and Cardinals. They have bigger or better stadiums, or winning teams, or maybe bigger markets. We accounted for all of that, remember? These numbers don’t lie. The number of giveaways explain or predict attendance (apart from everything else), and the effect increases at an increasing rate.

Conclusion

The results also show that special events significantly increase attendance. Teams like the Padres (172), Brewers (136), and Royals (126) benefitted from these appeals to different market segments to increase attendance above what it would have been without them. We can argue those with the fewest special events (Red Sox, Mets & Yankees) didn’t need them because of the other factors going in their favor. What might they have done with them?

Finally, it’s always interesting to note the cost of going to the game doesn’t influence average attendance. Neither did any of the park factors, like runs scored or home runs. The total market size and inter-city rivalries help attendance, but just as it has from 1990-2015, it is the least (although significant) effect.

 

  1. The PFI accounts for larger markets + total major league franchises in the DMA. The New York teams lead the way with the largest population and the most (9) major league teams.
  2. To get 91.3% R-Squared you need to include the quadratic and cubic functions for giveaways.

Sports Sponsorship & Sales (S3) Newsletter: The Relaunch

Sports Sponsorship & Sales (S3) Newsletter: The Relaunch
by Kirk Wakefield – May 2017

S3 Newsletter

May marked the relaunch of the S3 Newsletter–and the next issue could be starring you! Sign-up here to receive each issue via email, as well as to share news, such as:

  1. Moving: From one sports/entertainment related position to another
  2. Shaking:
    1. Promotions,
    2. Awards, or
    3. Other stupendous feats of possible interest to readers.

In in this month’s newsletter we learned of:

S3 Track Rebranding & New Faculty

To better align the curriculum with the needs of the industry, Baylor S3 now offers three tracks:  Ticket Sales, Strategic Partnerships & Branded Content, and CRM & Analytics. After completing her Ph.D. at Rutgers, Dr. Tyrha M. Lindsey-Williams joins the faculty in the Department of Marketing this fall to teach advertising & digital marketing as part of the partnerships track.

S3 Club Record

The S3 Club includes all junior & senior majors and underclassmen interested in S3. With 138 active members, we surpassed the previous high membership set the year before by over 50%. Thank you board members and alumni for your support!

S3 Placement

Thanks to our partners for another great year placing S3 students in careers & internships. See who went where here.

Want to be involved next year? Register now for January 2018 Pro Day & Board Meetings!  We are currently accepting new supporting and leadership partners.

AT&T Challenge Winners

As part of Pro Sales II with Dr. Lehnus, juniors teamed with AT&T to create strategic partnership solutions for the Dallas Mavericks to reach fans in Mexico. This year’s winners of the competition were Diane Siri, Dodge Bludau, Courtney Ulrich and Ian Young.

Special thanks to our judges: Bill Mosely (AT&T), Eric Fernandez (SportsDesk Media), David Peart (Root Sports), Travis Dillon (The Marketing Arm), George Killebrew (Dallas Mavericks), and Jason Cook (Baylor University).

 S3 Bright Futures Awards

In partnership with BBVA Compass Bank, S3 honors the female and male outstanding seniors with the #BrightFutures Award at the Senior Banquet. This year’s winners are Erika Moulder (SSE) and  Grant McLaughlin. Thanks to our guest speakers Sheiludis Moyett and Tuck Ross from BBVA Compass!  #LiveBright!

The Bright Futures Award goes to the male and female seniors who best exemplify the S3 values of WINS: Work ethic + Integrity + Networking + Spirit. Winners are honored at spring events, awarded plaques, and receive $1000 toward attending the Daniel Summit after completing one year in their careers in the business of sports.

 S3 Movers

  • Mitch Mann (2009) – Associate Athletic Director, Baylor Athletics
  • Tommy Wright (2011) – Marketing Sponsorship & Partnership Manager, Houston Space Center
  • Travis Gafford (2011) – Inside Sales Manager, Spurs Sports & Entertainment
  • Alex Karp (2012) – Senior Business System Analyst, Utah Jazz
  • Twila Mulflur (2015) – Client Support Coordinator, Stone Timber River
  • Hayley Di Naso (2015) – Hospitality Sales, San Francisco 49ers
  • Anthony Potts (2015) – BI Manager, Houston Dynamo

 S3 Shakers

  • Austin Flagg (2010) – Senior Manager, Business Development, PGA Tour
  • Blake Pallansch (2015) – Premium Account Executive, Tampa Bay Buccaneers
  • Austin Dinnes (2015) – Premium Account Executive, Tampa Bay Buccaneers
  • Nick Buckley (2016) – Account Executive, Membership Sales, Houston Rockets

Next month we will feature the Movers & Shakers of S3 Board Members–so share your news here! 

Special thanks to our premiere Leadership Partners, StubHub (Geoff Lester), Phillips 66 (Tami Walker) and Eventellect (Patrick Ryan)!

Help us help you: How to utilize your marketing team to grow sales

Help us help you: How to utilize your marketing team to grow sales
by Alexis Sidney – October 2015

Successful sales teams build strong relationships. Client relationships are important. Building strong relationships within the company and specifically with the marketing department is also important. Marketers support revenue generating goals by crafting a strong and memorable message, building an effective and integrated promotional plan, and reaching beyond the typical target audience.

The sales staff and management can work effectively with the marketing team to maximize sales and revenue by following these five guidelines: 

  1. Build a relationship. As with any coworker, build a rapport with your marketing contact so you aren’t only reaching out when you need something. Show an interest in his or her job and learn what responsibilities s/he has. Encourage them to get familiar with your role as well.
  2. Share your strategy. Let marketing know your goals. What does success looks like for each project? In general, salespeople and marketers provide unique perspectives on the same task. Inter-department collaboration on a marketing and sales plan will encourage teamwork and promote an understanding of each other’s goals.
  3. Get a point person. At the Mavs, a marketing position serves as the primary liaison for ticket sales creative and promotional requests. The marketing contact collaborates with ticket sales and gains a thorough understanding of their needs while maintaining final creative approval. It also encourages a sales focused perspective when making marketing decisions such as theme nights, promotions, premium items, etc.
  4. Plan ahead. One of the most important factors in creating a successful marketing campaign is preparation. Sales employees are sometimes shocked to learn the lead time required to send a seemingly simple message. Many moving pieces need to be coordinated internally before going public. Marketing needs time to design graphics, create messaging, schedule promotions and advertisements, and ensure accuracy before moving forward. Messages can change quickly during a season, so it is important to prioritize major or recurring sales goals in advance to ensure that these messages get necessary time and attention.
  5. Keep open lines of communication. Marketing contacts are usually the most informed on the upcoming communication priorities across the organization. Be sure to include at least one marketing contact in your annual planning and relevant department meetings. Keep them up-to-date on your upcoming priorities. This will allow them to integrate fresh sales messages into promotional schedules and recommend additional sales opportunities throughout the year that might otherwise be overlooked.

Although we work in different departments, we are all on the same team. It’s everyone’s job to sell tickets, “put butts in seats,” generate revenue, drive fan engagement and create memories. Help us help you (and hopefully you’ll help us too).

Are you the best around?

Are you the best around?
by Jeff Eldersveld – August 2013

What does “best” mean?

The word “best” is interesting. While clearly defined in sports with crowned champions, MVPs, medals and trophies, the business side of sports is a little harder to understand.

Who is the champion of website marketing? What was the best in-game promotion?

Sure, there are awards for these types of things, but they are voted on by members within the industry – based more on gut and feel rather than stats and numbers.

If I ask you who’s the best hitter in baseball, you should reply with the league leader in batting average (don’t say Yasiel Puig!). If I ask you to name the best promotion in Minor League Baseball, you could reply with a variety of answers from Brittany Spears’ Child Safety Night with the Newark Bears to Free Gas Night with the Fort Myers Miracle. Different promotions are the “best” in their own unique way.

Best in class

A characteristic of the best salespeople and managers I’ve known is that they have a clear vision to be the “best” wherever they are. If people in this business are satisfied with middle of the pack or bringing up the rear, odds are it won’t be long before they’re realizing their vision of work somewhere else. Here are some tips that have helped me stay focused on the right path.

Define what value means to your organization–>especially your boss.

dan migalaNot everyone has the same idea. You should constantly present data, statistics, or examples that prove your worth to the organization. For those already employed, this is a great way to solidify your position within the organization. For those seeking employment, this is a great way to get a foot in the door. Dan Migala, Founding Partner of Property Consulting Group, could not agree more:

“Iowa State University Associate Athletic Director, May Pink, just reminded me at NACMA this year that hiring decision-makers look for candidates that show they want the job the most. I think this is great, timeless advice. I would encourage any applicant to find multiple opportunities during the interview process to show vs. just tell why you want the job the most.”

Always encourage others. Go out of your way to compliment a job well done.

You can’t get anywhere in your career by yourself. The people who can propel your career development are the ones with whom you work most closely.

Take time to cultivate those relationships; it will strengthen the chemistry within your team and positively affect the culture within your organization.

The faster you embrace your company’s culture, the better, says Migala, “Understand that the culture and people you work with and learn from are more important than the logo on your business card.”

Be unique

You are your own person. “Be yourself, ” says Oscar Wilde,  “Everyone else is taken.”

“Legendary Notre Dame SID Roger Valdiserri taught me early in my career that each person is the sum of their own experiences,” explains Migala. “The minute I realized this, I stopped trying to guide myself into the box of what I thought the industry wanted me to be and focused instead on carving my own path.”

Start now

So start being the best around. And if you are the best, share it. Shout if from the mountaintops, market the heck out of it, or more literally, leave your comments below. Remember, we make each other better. The worst thing that you can do is keep your “best” to yourself.

 

Is integrity in sports sales a problem?

Is integrity in sports sales a problem?
by Wade Graf – February 2013

Hundreds, even thousands, apply for any ticket sales position opening, flooding LinkedIn, PBEO and Teamwork Online  with resumes and contacts trying anything to break in.

Some fly to the Baseball Winter Meetings or various sports sales combines in hopes of speaking to any hiring manager willing to listen. If fortunate enough to grab entry-level positions in inside sales, they soon realize they have a very short time period to prove worthy ticket sellers.

[dropshadowbox align=”right” effect=”lifted-both” width=”350px” height=”” background_color=”#ffffff” border_width=”.5″ border_color=”#dddddd” ]

Three Takeaways:
• Form good habits and practices early in your career.
• Never compromise morals or integrity in order to get ahead.
• Promotions aren’t always awarded to the top revenue generator. Integrity, teamwork and work ethic are other key components in taking the next step in your career.[/dropshadowbox]

Entry level sales positions are often part-time or limited periods (6-12 months) before the next batch of recruits invade the cubicles. Reps compete in revenue generation to earn a full time position with the team. In this pressurized competitive situation, inexperienced reps may look for any way possible to succeed.

Habits learned early in your career not only stay with you; they grow and intensify on a daily basis. It is incredibly important new ticket salespeople understand there is more to their jobs than just generating the most revenue possible. Sure, managers want and need to fill the seats through season tickets and nightly suites, but that’s not all that matters.

Does integrity count?

Outstanding sales reps don’t compromise integrity trying to make sales or earn promotions. Being a standout sales representative is not:

  • taking a 16-digit credit card number or check, then ignoring the client over the entire course of the season.
  • achieved by holding a great seat location from your co-workers until you find just the right individual or company who will buy them from you.
  • earned by trying to sell to a company your teammate has been talking to for months or by hiding a sale in the client’s brother’s ticket account.

Just one episode of taking another representative’s sale can tarnish that representative’s image. Months or even years of great work can come crashing down over one moral compromise.

Jason Fortune, Season Ticket Manager with the Texas Rangers, explains,

Jason Fortune

“As long as you  maintain your integrity and make the right decisions, you will always have a chance to earn a promotion. Always remember that sales reps who cut corners and ‘cheat’ the system will not last long with any organization. The recipe for success is simple: Come in, work hard every day surpassing expectations, never compromise your integrity, and eventually your hard work will pay off.”

Katie Morgan, CRM and Database Manager with the Texas Rangers, notes the effects acting with integrity has on potential promotions:

Katie Morgan
Katie Morgan

“Gaining the respect of your peers is one of the most beneficial things within the sports industry and also one of the most critical. Maintaining working relationships with those around you will help with day to day tasks. But, more importantly, those who earn respect and work well with others catch a manager’s eye when looking to potentially promote.”

Are you a great teammate?

Being a great teammate and helping the person you are competing with to earn the promotion is just as important as being on top of the sales board. Giving great customer service and showing customers around for an hour in the stadium means just as much to the organization as making ten more calls in order to earn the next sale.

When looking to promote from within the organization, season ticket or suite managers don’t always pick the leader on the sales board. They want those who can sell, but also those who provide superior customer service, have great moral standards, and represent the organization well each and every day. Remember it’s a team sport, both on the field and in the office.