Article #5: Maximize Non-Revenue Shared Inventory

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*Editors Note: this is Article of #5 of the 7 part series. To view the individual articles, click on the subject links in the first section below.

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7 Part Series: Attendance is not just an MLB Issue, but how do we Fix it?


There has been a lot of media focus on the declining attendance of MLB recently, some fair and some not. And while attendance is sliding it is hardly an MLB only issue other than it being the most visible due to large stadiums and the number of games. Many leagues, teams, concerts, and events are struggling to sell tickets as well.

You can look at many data points across the sports business landscape and see a myriad of varying conclusions as to why:

  • Ticket price
  • Ancillary costs
  • A changing consumer landscape
  • The ability to watch from home on a sick, affordable flat screen TV
  • *gasp* Those evil millennials

However, a lot of those data sets either do not tell the entire story and point to why attendance should be increasing and not the other way around. It is possible to maximize revenue by creating scarcity with affordable tickets. You can manage brokers strategically. Millennials, ironically, covet experiences amongst many other false assumptions. TV/Content drives attendance through brand awareness. And lastly, Fantasy Sports and Gambling are driving even more marketability and awareness.

The data points to more consumer interest. So why are ticket sales failing, and how can we quickly address it? Let’s examine five reasons why and define strategies to help. Plus, two sports business relatable bonus tracks on customer LTV and innovation using real-world examples:

  1. Create Scarcity
  2. Find Solutions to Real Problems
  3. Embrace Modern Content
  4. Market Specific Resale Strategies
  5. Non-Revenue Shared Operating Income

Bonus Tracks:

Innovation goes Beyond Tech: What Sports Business can Learn from Sheetz

Customer LTV: What Sports Business can Learn from Buick and Toyota

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Article #5: Maximizing Non-Revenue Shared Inventory

An unknown to many outsiders of the sports business landscape is that the revenue is from playoffs and non-team events can be vital to an ownership group.

Whether the league is a salary cap structure with a dedicated percentage of revenues going to the players or a non-cap with ownership revenue sharing league, non-sports events and playoffs are typically accounted for separately. Meaning these revenues are of the utmost importance and usually drive operating income.

  • Non-Team events such as concerts can drive revenue through rent, parking, concession commission, premium seating, or other factors.
  • Playoffs vary from league to league, but the standard set up is the team pays into a pool which is used to pay the players. The rest is revenue for the team.

We discussed in a previous section about how turning suites into smaller areas can limit revenue potential. However, that theory doubles down when adjusting for concerts, events, and playoffs.

Every suite that goes unsold, every catering package not purchased, every concession item not bought, every parking spot that sits empty is costing 100% true operating cost for the ownership group.

These products can get lost or forgotten but may be the most important. Be sure to include them in your resale strategy. There are ways to market and manage the products and revenue that help your organization the most.

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Mike, a 20 year veteran of the ticketing industry has executive experience with primary and secondary roles. He resides in Denver with his wife Jacqui, VP/Head of Studio at UpPurpose (A United Way funded marketing consultant), and their son Grayden, a 3 year old bad ass snowboarder. See more of Mike’s media at




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Mike Guiffre

Mike Guiffre

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