More baseball teams offer 2010 tickets earlier

Related Topics

CHICAGO | Mon Aug 10, 2009 4:42pm EDT

CHICAGO (Reuters) - More Major League Baseball teams are sending out season-ticket renewal offers earlier in the season to lock fans in early for next year and keep the cash flowing as the recession prompts people to save money.

The earlier offers are keeping some supporters like Steve Wilkinson -- an 11-year season-ticket holder with the Arizona Diamondbacks -- happy even as the recession batters spending.

"You can spread your payments out, no interest," the 54-year-old Phoenix contractor said of Arizona's shift last year to sending renewals in early August from December in 2007. "They make it easy on you to stay in there."

At least a third of the U.S. sports league's 30 teams will send out their 2010 renewal invoices in August or September -- before this season ends, an increase from last year. Teams have every reason to lock in sales for next year as 2009 attendance was off about 5 percent through August 3.

Also increasing pressure on teams is the lower perceived value of tickets. The average resale price of baseball tickets is off about $10 from last year, according to StubHub, the giant online ticket marketplace owned by eBay Inc.

"Without question, the majority of sports have seen a reduction in resale price," StubHub spokesman Sean Pate said. "We've experienced price drops across the board from years past of roughly 15 percent."

Baseball officials said offering earlier renewals gives fans more time to pay for tickets costing anywhere from $5 or less up to thousands of dollars per game, and starts the process while baseball is still on their minds. It also makes it easier for clubs to plan budgets and ticketing strategies.

"For all sports teams, the renewal is probably the most important thing that you're going to do every year," said Lou DePaoli, an executive vice president and chief marketing officer with the Pittsburgh Pirates, which plans to send out its offers a month earlier this year, in early September.

"We would have done it anyway, but now's the time where maybe the impact would be even greater given the softness in the economy," he added.

Even one or two percentage points in improved renewal rates can result in a lot of extra revenue, said DePaoli, who intends to send the 2011 offers even earlier, in early August of 2010.

OUT OF SIGHT, OUT OF MIND

The best time to hit fans with renewal offers is when they are still enjoying the games, rather than waiting for after the season when they may be distracted by football, basketball or hockey, team officials said.

"You don't want to be out of sight, out of mind for a 30- or 60-day window," said Tom Garrity, senior vice president of sales for the Houston Astros, which plans to send its renewal invoices earlier than last year's October rollout.

Another reason for the earlier offers is so recession-weary fans can have more time to pay for the tickets, meaning lower monthly bills, team officials said.

"By invoicing earlier, we can provide a five- or six-month payment plan," Minnesota Twins' vice president of ticket sales Steve Smith said. "That's one of the driving factors."

The Twins, which will play in a new ballpark next season, will send out invoices this month instead of after the regular season as they did last year.

While a team's wins and losses remain a big factor in determining fan happiness, the recession is on the minds of many baseball executives, Diamondbacks CEO Derrick Hall said.

"We need to figure out, with the economy, how we can bring more value to our fans," he said.

One way is with a new program: "30 prizes in 30 days." Fans who renew have their names included in a daily drawing for such prizes as hotel stays, batting sessions with players and trips to the all-star game next year, Hall said.

The team sent its renewal notices on August 3, similar to last year when the renewal rate was in the mid-80-percent range. Hall believes given the Phoenix market's struggles the final number would have been far lower with a later renewal offer, and he will be ecstatic to match that rate this year.

There are still plenty of baseball teams that prefer to wait until after the season.

"I don't know if it really makes that much impact on our end," said Robert Alvarado, vice president of marketing and ticket sales for the Los Angeles Angels of Anaheim.

"It drags out the renewal process," he added. "We've got so many other irons in the fire."

(Reporting by Ben Klayman. Editing by Robert MacMillan)

Related Quotes and News

Company
Price
Related News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.