The Springfield Nor'easters:Maximizing revenues in minor league case analysis and solution for breakeven.

The Nor’easters The Springfield Nor’easters

Maximizing Revenues In

Minor leagues

1.Nor’easters Home games:38

2.Stadium Capacity:3600 seats

2000 bleachers seats+

1600 grandstand seats

3.Springfield’s Population :

‘55338’

4.Profit Margin from Concessions>39%

5.Expected Full Season game Attendance

90% per game

6.Stadium Rent:

100% parking revenueto the

Springfield College

7.Survey Responses:

625 responses

8. How much money is neededFrom ticket sales and concessions

to cover fixed costs?

Total Fixed cost:$1,961,379

$1,961,379(Less)

Player’s Salaries-$887,000Bats and Balls-$22,500

Fixed Cost=$1,051,879(Less)

Revenues FromNearby Colleges-$21,000

Sponsorship-$25,000

$1,005,879 revenueMust come from

Ticket sales and concessions

9.What is Consumer’s willingnessTo pay by price and ticket type?

Price per ticket

Ticket Type

Less than$4

$4 $6 $8 $10 $12 $14

SingleTicket

0% 2% 5% 13% 37% 27% 22%

5 game ticket

1% 2% 3% 19% 36% 34% 5%

20 gameHalf

Season

1% 7% 23% 28% 25% 15% 1%

38 gameFull

Season

18% 26% 20% 14% 11% 10% 1%

10.Calculate expected revenuesFrom snacks , souvenirs and

Arcade games

81% are expected to spendat least $6 for concessions

no less than 39% is the profitmargin on concessions

A minimum of $2.34 per person can be expected

as revenue

Price Fixing

Key Resources from theSurvey

21% willing to attend a gameThat is

11631/55338

11% willing to attend 5 gamesThat is

6093/55338

5% willing to attend 20 gamesThat is

2769/55338

2% willing to attend 38 gamesThat is

1107/55338

76% are willing to pay

At least 10% more for Grandstand seats

Price fixing and ExpectedRevenue from Single game

buyers

80% are willing to spend$10-$14

ThereforeBleacher seats-$10

Grandstand seats-$12

Revenue from tickets:$10-31%-3605$12-49%-5699(+)

9304

$36050$68388(+)

$104,438

Revenue From Concession:81% of 9304 buy ConcessionAt a margin of $2.34 per person

7536*$2.34= $17634

Price fixing and ExpectedRevenue from 5 game

buyers

94% are willing to spend$8-$14

ThereforeBleacher seats-$8

Grandstand seats-$10

Revenue from tickets:$8-19%- 1157$10-75%-4570(+)

5727

$9256$45700(+)

$54956

$54,956*5=274,780

Revenue From Concession:81% of 5910 buy ConcessionAt a margin of $2.34 per person

4787*$2.34*5= $56008

Price fixing and ExpectedRevenue from 20 game

buyers

92% are willing to buy

At least for $6

$6Bleacher seats and Grandstand seats

Revenue from tickets:

0.92*2769*$6=$15282

$15,282*20=$305640

Revenue From Concession:81% of 2630 buy ConcessionAt a margin of $2.34 per person

2130*$2.34*20= $99,684

Price fixing and ExpectedRevenue from 38 game

buyers

82% are willing to buy

At least for $4

$4Bleacher seats and Grandstand seats

Revenue from tickets:

0.82*1107*$4=$3630

$3630*38=$137940

Revenue From Concession:81% of 996 buy ConcessionAt a margin of $2.34 per person

806*$2.34*38= $71,669

TOTAL EXPECTED TICKET REVENUE

$104,438+$274,780+$305,640+$137940

=$822798

TOTAL EXPECTED CONCESSION REVENUE

$17634+$56008+$99684+$71669

=$244995

TOTAL EXPECTED REVENUE

$1,067,793

HENCE BREAKEVENCAN BE ACHEIVED

THANK YOU -BY

ASWANTH PSG COLLEGE OF TECHNOLOGY