Gentrifying the stadium experience

I’m not offering this as a flat-out prediction of what’s coming on the college football side, but I defy any sports fan of normal means to read this article about the costs of the two new stadiums being built for the Braves and Falcons, partly with public funding, and not feel some unease about where the market is going.

The new Falcons stadium, which will be two million square feet, has a $1.4 billion price tag and features many of the amenities for well-heeled fans that can be found in Texas — including lavish club lounges attached to premium seating and luxury suites.

“The buildings are different today,” said Wayne Wadsworth, principal in charge of Falcons stadium general contractor Holder Hunt Russell Moody. “What we put into these facilities … continues to increase.”

The exclusive areas help teams justify higher ticket prices.

For the right to buy season tickets, Falcons fans will be required to pay license fees, priced at $10,000 to $45,000 for the best 7,700 seats. Season tickets in those areas will cost $325 to $385 per game — increases of as much as $200 compared to similar locations in the Georgia Dome without the attached amenities…

Whoa, Nellie.  But nobody in the NFL got rich… er, richer, by ignoring the obvious math involved.

Newer facilities, designed to rake in more money from deep-pocketed fans, have fundamentally changed the stadium business model, said Robert Boland, a professor of sports management at New York University.

“Luxury boxes should produce twice as much revenue as all regular seats in the stadium,” Boland said. “Club seats should produce revenue about equal to that of all other regular seats in the stadium.”

The results seem inevitable.

“It’s one of the great ironies of these publicly financed stadiums — people are paying for stadiums that some of them can’t afford to enter,” Zimbalist said.

Jim Fuerst isn’t buying seats.

A 45-year-old civil engineer, Fuerst is a Falcons season-ticket holder. But he said that will end in 2017 because comparable seats in the new stadium have a $15,000 license fee attached to them.

“I’m sure the new stadium will be a wonderful experience, but I don’t know who can afford to go to it,” Fuerst said. “I think the Georgia Dome is a nice place. I enjoy watching football games. That’s what I thought I was there for. I’m not there to be wined and dined in any other way.”

There’s also factoring in the cost of making the in-game experience more like the rest of our daily lives.  Like staying in touch every second of the day:

Technology.

The technology allowing 70,000 cell phones to make calls and upload pictures to social media is wildly expensive and advances virtually overnight. It is one of the major drivers behind escalating stadium costs.

Cowboys spokesman Jon Winborn said the team started getting complaints about connectivity inside the stadium after just two years. It responded by replacing the 750 WiFi access points and adding an additional 500 units. Winborn wouldn’t say how much it cost, calling it “an incredible amount,” but said the stadium now also has the equivalent of 17 full-sized cell towers on site, for phone calls and texting.

Greg Beadles, Falcons executive vice president and chief financial officer, said cellular and WiFi technology in Atlanta’s new downtown stadium will cost tens of millions of dollars each.

“When folks come to the stadium, they expect to be able to use their phone just like they can at home or … at Starbucks,” Beadles said.

Technology costs aren’t limited to cell phones. Television broadcasts in high definition require brighter lights and more power. At the Cowboys stadium, the team has built a full television studio to operate the video board.

Aside from cellular and WiFi capability, architect Santee said other technology — video boards, LED lighting, sustainability initiatives — has added 20 percent to stadium costs since the 1990s. He said technology used to be an optional expense.

“Now, it is a fundamental thing, like restrooms and concessions and so on,” Santee said.

Sound familiar, college football fans?

Like I said, I’m not trying to make any absolute predictions here.  But there’s little denying that big time college athletics chases the same money the pros do.  And there are only so many ways to separate us from the contents of our wallets skin that particular cat.  Going after the fatter felines is part of what pitching your product as a national one and leaving your regional roots entails.

Even now, at the local level, there are already companion pieces.  Georgia has had luxury boxes for some time now.  The Falcons’ seat license fees are just a more expensive version of Hartman Fund contributions.  And if you squint a little, can’t you see a special version of the Dawg Walk coming?

Cowboys’ players, for example, walk past fans in one of AT&T Stadium’s field-level clubs on their way to and from the game.

“It’s a pretty unique experience to get a fist-bump from Tony Romo, or catch Dez Bryant’s gloves,” team spokesman Joe Trahan said.

Not yet.

Fear not.  Maybe I’m overly pessimistic, making too much of this.  Anyway, it’s not like there aren’t a few spoils we’re being left to fight over.  Hey, the broadcast delivery market is growing more competitive!  (Even as the content itself grows more expensive to deliver.)  Quite your dichotomy there, eh?

28 Comments

Filed under It's Just Bidness

28 responses to “Gentrifying the stadium experience

  1. bulldoggemes

    Peter King’s column today had a q and a with Roger Goodell. One of Goodell’s concerns was selling out stadiums. I understand the technology upgrades but so many people are being priced out of the games. There is no way I would pay that kind of money to watch any pro team.

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    • Bright Idea

      My concern in ATL is the SECC game. I’ve been buying 2 good seats from the SEC since the beginning. They now cost $110 each which I consider reasonable. A friend of mine with Falcons’ season tickets has been invited to a private sales meeting for the new place. He has been promised first dibs on his seats for the SECC. How much will they cost and will they still be available to low lifes like me? Will the market among those with higher incomes support this sales strategy long term? It seems they will still need those of us who just go for the game to sell out these Taj Mahals.

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  2. JoshG

    I’ve got a 60 inch HD TV, a cooler, a house that accommodates social gatherings, and a wife that makes a great queso dip. I’m starting to wonder why I would ever go to one of these games, when I could spend the same amount of money on a 6 day beach front vacation.

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    • 3rdandGrantham

      Same here (sans queso dip), along with a Big Green Egg, nice sound system, and the like. I even have clean, uncrowded restrooms, and–get this–plenty of ice and water too. Traffic also is rarely an issue at my house either, other than occasionally having to wait a few seconds before pulling in while the kid across the street chases down a poorly kicked soccer ball.

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    • 81Dog

      how’s your Wi-Fi situation, Josh? Do you validate parking? I think you may have invited us all to watch games at your house next fall. 😉

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  3. Russ

    I think the last pro game I attended was in Atlanta Stadium. I can see there won’t be another.

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  4. DawgPhan

    Seems like saying that the thing that cost $10million is driving the costs of a thing that costs more than a billion dollars to build might be a bit of a stretch.

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    • doofusdawg

      Just another benefit of free money. Add the stadium bubble to the growing list of assets that will surely reset… the tax payers will be left holding the bag for this as well. And when the bubble bursts and the next Obama… who is not a huge sports fan… demagogues corporate America for their lavish suites then the stadiums will be just as empty as the hotels surrounding them… just like the last crash. But we will have our hd 4k 70 inchers to watch the carnage.

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  5. Macallanlover

    You aren’t being overly pessimistic at all, but the problem with stupid spending goes far beyond sports. How can anyone think building new stadiums when perfectly good ones are available makes any sense at all. To cave in to owners’ demands and stick the taxpayers with the bills is beyond stupid. Who is surprised at economic stupidity in this society any longer? Just throwing more fuel on the inevitable implosion.

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  6. Greg M

    Don’t listen to any of this folks! Get your ticket orders in by March 31!

    And it’s never too early to get your donations in either!

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  7. BMan

    “Aside from cellular and WiFi capability, architect Santee said other technology — video boards, LED lighting, sustainability initiatives — has added 20 percent to stadium costs since the 1990s.”

    I’m shaking my head over the irony of increased costs for “sustainability” initiatives in stadiums that are replacing facilities that are less than 25 years old (the Georgia Dome and Turner Field).

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    • 3rdandGrantham

      A European colleague of mine from Denmark attended the Final four in Atlanta several years ago, and he brought up his experience there when I mentioned being an Atlanta native to him recently. When I told him that the Georgia Dome was being replaced soon by a new stadium, he was in utter disbelief. He just couldn’t wrap his head around why such a nice, functional stadium was being abandoned.

      The best part of the conversation was when he asked what they were going to do with the stadium (assuming it would be used for lesser events). When I told him that they were simply going to tear it down, he literally dropped the phone, and just couldn’t believe what I was telling him.

      No wonder why the rest of the world views us as a bunch of snotty, entitled, fat, and arrogant types.

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  8. Silver Britches

    I’m really looking forward to walking past some new, super exclusive club area in Sanford Stadium on my way to a bathroom with an inch of standing water in it.

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    • Just Chuck (The Other One)

      Do you think there’s a chance any of us regular folks will get anywhere close to a “super exclusive club area in Sanford Stadium” on the way to the bathroom? I’ll be happy if the towel dispenser in my section’s bathroom still has towels left in it after the game. Usually there’s a little soap left but I am a master of the post-game air dry.

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      • Silver Britches

        My parents got to go to a reception in the SkyClub during my orientation 16 years ago. Does that count?

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      • 81Dog

        Silly Chuck. You can get a glimpse of life behind the velvet ropes on your way up to the 300 level if you just glance over at the 200 level on your way upstairs. Looking is still free, at least until Scrooge McGarity figures out a way to “monetize your looking experience.”

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  9. Most entertainment businesses today are dramatically pursuing the luxury market demo at the expense low to mid tier consumers.

    The marketing and pricing models for entertainment all follow the belief that your core fans (regardless of income level) will your support your product via any touchpoint that they can. You can only lose if you completely if they price you out of the minimum touchpoint. For sports, the minimum touchpoint isn’t actually going to a game – it is free television viewing and available mid-price merchandise or maybe getting to go to a free practice session or reasonably priced tickets to the SEC Experience. They are football fans or basketball fans or Falcon fans or Georgia fans and while they may aspire to attend a game, the are content not going to a game but watching their favorite team on tv while rocking some merch. The NFL or the SEC or UGA is not going to lose their support.

    All of the theme parks in Orlando raised ticket price earlier this year which puts the single day admission at around $100. When the news was released, it was reported that most of Sr. level executives at Disney, Universal etc, were championing the idea that a trip to one of their parks is a luxury level premium experience. It is isn’t for everyone, they are okay if they lose a portion of the lower to mid-tier consumer in the parks. There are families that will never go to the Magic Kingdom but still love Disney and will buy every piece of Elsa merchandise and watch every special and go to the movie and buy the DVD. Disney loves it because those folks if they did go to the park wouldn’t buy a lot of food or merchandise because they had to use all of the money to get in.

    The premium market has been expanding in virtually every sector and it makes money. The lower to mid-tier availability has shrunk and that will continue because business cannot expand the profits enough in those sectors.

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  10. I do wish you people would stop complaining! There are plenty of seats for everyone. Are we not entertained?

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  11. Dawgy45

    Now that’s interesting. I went to high school in Cobb County with a Jim Fuerst (whom I haven’t heard from in at least 20 years) who would be 45 now and who is an engineer. His nickname back in those days: “Bluto”.

    This must be one of those Disney “circle of life” things.

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    • Looks like you missed something.
      Bluto is from Popeye not Disney. THe GTP BLuto is from Animal House. Jeepers… Im putting one kid through med school and another through Georgia Law and Bluto is lost is the shuffle. Man up Cojones. Im busy.”

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      • Dawgy45

        Nope, didn’t miss a thing. My HS friend’s nickname was from Animal House, just like our gracious host here. The fact that I came across an old friend “Bluto” on a blog run by a “Senator Blutarsky” after all these years reminded me of the Disney song; I only mentioned Disney in reference to the song. Honestly, I had forgotten about Popeye’s Bluto despite watching the cartoons as a kid.

        Thanks for the concern though.

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    • 81Dog

      Obama loves regular folks and poor folks so much that he’s apparently buying “the Magnum PI estate” in Hawaii, where I’m sure he’ll never have to see one of them again.

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