2017-18 SPORTS BUSINESS MBA FIRST SESSION

TICKETING
STRATEGY & SALES

Milos Nenadovic
Executive, Business Development
Euroleague Basketball
milos.nenadovic@euroleague.net
NOW THAT WE KNOW WHAT WE
ARE DEALING WITH,

WE CAN LEARN HOW TO SELL…

If professional basketball in Europe expects to
grow, it must find a balance between the
traditions of the game and the changing
desires and mentality of its future customers
Product Centric Market Centric
 New Markets

The atmosphere of your events may be the

single most important psychological factor
that determines
your probability of attaining a customer
 New Markets

“People go to Roland Garros because…

it’s Roland Garros”
-Renee LeGoff, former president, LNB (French League)

The experience of attending a live event must exceed people’s expectations

Convenience
Comfort
Courtesy
Cleanliness
Compelling Experience
New Markets
 New Markets

26% of EuroLeague audience is female. How can we monetize them?

 New Markets

Reach out to students for advice, social integration, & on campus

ambassadors
 New Markets

Private clubs for Millennials

MLS’ Seattle Sounders’ NFL’s Jacksonville Jaguars’

“Party on the Pitch” “Poolside Cabanas”
 New Markets

Why not try something new?

• Private club membership model

• Package with sector-specific mini-plan
• Can utilize temporary structures outside venue
• Opportunity for off-pitch alcoholic beverage sponsorship; collective deal
sold by league & re-distributed to clubs?
• Player/ customer interaction
• Convergence of sports, fashion, gastronomy & tech
• New value proposition
 Premium Seating

Remember the 70/30 rule!

 Premium Seating

Recession Resistant

The price of status is relatively inelastic

 Premium Seating

We Are Selling Status

 Premium Seating

We Are Selling Networking & Socializing

Stadio della Roma future premium lounge Chase Club, MetLife Stadium
(pitch-level club where players enter) NFL’s New York Giants & Jets
 Premium Seating

We Are Selling Innovation

Evian (Ligue 1) installs pitchside seats

 Premium Seating

We Are Selling A Place To Do Business

Manchester City’s PLATINUM EXPERIENCE

 Premium Seating

We Are Selling The Coolest Place To Be

MSG’s Chase Bridge

 Premium Seating

We Are Even Selling Sleeping!

Mississippi State’s lofts at Dudley Noble Field (baseball)

 Choice & Differentiation

One size does not fit all!

Not just in products, but price ranges, benefits provided, capacities, etc..
 Choice & Differentiation

Most clubs only differentiate with seat location and F&B

BE INNOVATIVE
 Choice & Differentiation

Most clubs only differentiate with seat location and F&B

ADD VALUE
 Choice & Differentiation

Most clubs only differentiate with seat location and F&B

CONTROL WHAT YOU CAN CONTROL

 YOU HAVE TO
COMMUNICATE…
Communication
 Communication

Tell your stakeholders the truth!

Pro sports IS a business!

“The new era of Olimpia”

“We must ensure that the product will attract
many viewers and that Olimpia (Milano) is a
solid company that will increase its revenue
from ticketing and sponsorship in order to
create a healthy balance between costs and
revenue”
--Livio Proli
President, Olimpia EA7 Emporio Armani
 Communication

Don’t waste money!

 Communication

Use business, lifestyle & social media (print & digital) to set the table and
lend credibility in your business community

CREATE BUZZ!
 You want to
talk…directly…to the
people who will be most
receptive to what you
have to say
 Face to Face Selling

Direct Marketing is the ability to communicate, in as

close to a one-to-one manner as possible, with every
one of our customers and prospective customers
 Face to Face Selling

Your sales team should sell the full menu of ticket & hospitality products

- Companies will buy general public seats w/o hospitality

- Companies will buy sponsorship plus hospitality, groups and general public tickets

- Individuals will buy VIP seats w/ hospitality

- Individuals will buy groups on behalf of social clubs

 Face to Face Selling

Use gatherings to gain access to potential customers

- By-invitation “open houses” at your arena or parties at customer homes

- Business meetings – invitation from your sponsors to other companies

- “Insider” event (players & coaches)

- Fan lunches

- B2B events
 Sourcing Prospective Customers

Prior customers (heading up the escalator)

Business, professional & trade organizations (directories)
Business directories
Outbound e-marketing; direct mail (response)
Acquired lists; filtered by high-probability demographic and profile matches.
Self-generated lists
Cash/single game customers (box office, outlets)
Business networks; private clubs; sports clubs
School visits
Speaking engagements
Consumer promotions (entries) w/ sponsors
On-line newsletters & “insider information” (blogs)
Parties
 SCALING
PRICING
SEGMENTATION
 Scaling | Pricing | Segmentation

Price your “house” like seaside real

estate, starting with ocean front.

Reserve the best locations for the top-

tier ticket products.

Don’t undermine your product offering

by selling lower-tier products in upper-
tier sectors.
 Scaling | Pricing | Segmentation

A typical 10,000-seat arena should have

approximately 8-12 different price sectors
 Scaling | Pricing | Segmentation

Differentiate!

Physically, Actually & Perceptually

8-12 segments/10,000 seats

Look for physical breaks in arena seating bowl (aisles, corners, tiers, walkways, seat
color/width/leg rooms, etc.)

Look for proximity to court, video screens, clubs, F&B, etc.

Look for proximity to entrances, parking, public transit, etc.

 Scaling | Pricing | Segmentation

When setting prices, set them right the first place, no matter how low, then there is no reason
to discount…right?

Figure out the value…and stick to it!

If you need to give people a reason to buy, give them more value, NOT less cost

Trust the data – do you have data?

Use analytics based on ticket utilization, demand metrics, etc.

 Scaling | Pricing | Segmentation

Package seating locations with

comforts, conveniences & added-
value based on hierarchy
 Scaling | Pricing | Segmentation

Better the seat, better the comforts,

conveniences and benefits (added
value) & higher the price
Scaling | Pricing | Segmentation
THANK YOU!