Knock revenue out of the park — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Knock revenue out of the park

Get PDF file

by on
in Leaders & Managers

If you were a Major League Baseball (MLB) team with lagging revenues, what would you do? Build a bigger stadium with more revenue-producing seats?

In the business of baseball, bigger isn’t always better.

To ramp up revenue, MLB teams have taken a counterintuitive path. The 20 new stadiums opened (or almost open) since 1992 have more than 200,000 fewer seats. Yet the average ticket price is up 87% in a decade.

The result? Scarcity boosts ticket prices and keeps the seats filled.

By tapping into its loyal hometown following—and taking a different path from the National Football League (which draws two-thirds of its revenue from TV)—MLB has hit a home run.

—Adapted from “The Revenue Model: Why Baseball Is Booming,” David Jacobson, BNET.

Related Articles...

Leave a Comment


Previous post:

Next post: