The revenue model has significantly changed in sports organizations. Following the adoption of personal seat licenses (PSLs), several teams have decided to offer their fans ticket discounts. In this case, PSL seat holders are required to purchase annual season tickets, or else the PSL may be forfeited. Therefore, when the holder continues purchasing tickets, this plays a vital role in maintaining revenue. On the other hand, naming right agreements have a significant impact on revenue (Wharam et al., 2020). This results in improved relationships between consumers and brand sponsors. This enhances fan experience through mediums like freebies, thus providing additional entertainment value, which improves revenue due to increased fan participation.
Additionally, companies are prompted to pay a lot of money for naming rights as it leads to brand awareness, which increases the brand’s value and also leads to free advertising. Besides, it leads to fan loyalty since it grants fans a warm feeling towards the home team (Rose-Redwood et al., 2019). There are several challenges experienced in ticket sales. This includes lack of full-cycle marketing efforts and the failure to ask the magic question, which is what consumers value most. To improve ticket sales, it is essential to keep the sales at peak and offer appropriate discounts.
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References
Rose-Redwood, R., Vuolteenaho, J., Young, C., & Light, D. (2019). Naming rights, place branding, and the tumultuous cultural landscapes of neoliberal urbanism. Urban Geography, 40 (6), 747-761. Retrieved from https://doi.org/10.1080/02723638.2019.1621125
Wharam, D., Geringer, S., King, R., & Kerr, M. (2020, June 12). Local sport club structures and their effect on athletic performance: The relationship between formalization and athletic performance in swimming. The Sport Journal, 21 .
