Understand and appreciate the importance of economic, social, cultural, political, and environmental sustainability for planned events; recognize and understand the economic, social, political, cultural, and environmental changes that are affecting the global events industry; identify and benefit from the demographic changes affecting the global event industry;. | Identifying Revenue Streams Sports Event Management and Marketing Playbook Play 3 Identifying Revenue Streams: Overview Sports event revenue streams come from many sources, depending on the type of event Revenue objectives will vary; detailed event planning will identify bottom line needs Event budget provides an outline of expected costs and provides guidance in planning As with expenses, flexibility to changes in the plan and budget is key Key Terms Net income Gross potential Value-in-kind (VIK) Price schedule Per cap Spoilage Budget Forecast Typical Sports Event Revenue Streams Ticket sales Sponsorship and advertising Merchandise Concessions/food and beverage Broadcasting Participation fees Grants and donations Ticket Sales The lifeblood of most top sports events Ticket sales affect the potential of many other revenue streams (., concessions and sponsorship) Calculating gross potential provides a reasonable estimate of ticketing revenue Effective ticketing pricing will . | Identifying Revenue Streams Sports Event Management and Marketing Playbook Play 3 Identifying Revenue Streams: Overview Sports event revenue streams come from many sources, depending on the type of event Revenue objectives will vary; detailed event planning will identify bottom line needs Event budget provides an outline of expected costs and provides guidance in planning As with expenses, flexibility to changes in the plan and budget is key Key Terms Net income Gross potential Value-in-kind (VIK) Price schedule Per cap Spoilage Budget Forecast Typical Sports Event Revenue Streams Ticket sales Sponsorship and advertising Merchandise Concessions/food and beverage Broadcasting Participation fees Grants and donations Ticket Sales The lifeblood of most top sports events Ticket sales affect the potential of many other revenue streams (., concessions and sponsorship) Calculating gross potential provides a reasonable estimate of ticketing revenue Effective ticketing pricing will maximize potential revenue and is determined by a number of factors Calculating Gross Potential Seating Area Inventory Ticket Price Potential Front Row 150 $50 $7,500 Lower Seating, Mid Arena 750 $35 $26,250 Lower Seating, End Zone 500 $25 $12,500 Upper Level, Mid Arena 500 $25 $12,500 Upper Level, End Zone 350 $ $6,125 Standing Room 100 $10 $1,000 GROSS POTENTIAL 2,350 $65,875 Unless the event has a proven track record of selling out, a good rule of thumb is to budget for 80% of gross potential. In the above example, this would mean selling a minimum of 1,880 tickets (2,350 x ) for a projected $52,700 ($65,875 x ). © John Wiley & Sons, Inc. Ticket Pricing Factors Event history Event perception Event comparison Event market environment Event specifications Event venue selection Event revenue Sponsorship and Advertising Sponsorship helps lower the price of tickets and need for relying on other revenue streams The amount and value of sponsorship and advertising is directly related
