More baseball teams offer 2010 tickets earlier

By Ben Klayman - Analysis

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."