Sunday, June 26, 2011

Crowd Seats Can Help Sports Leagues After Lockout and Labor Issues


Even with the presence of Groupon, LivingSocial and StubHub, sports fans have still been searching for a place to purchase group tickets for a cheap price. And up until recently, there was no company that specifically focused on group sales of sports tickets. Now enter, Crowd Seats.

On June 6th crowdseats.com officially launched its website. Crowd Seats is a daily deals site that offers sports tickets at HUGE discounts. The discounts range anywhere from 50-90% off face value with no fees. Crowd Seats can also be shared through Facebook and Twitter, with each referral through the social media services netting you a $10 credit on Crowd Seats. Crowd Seats is a benefit for both the consumer and the sports organization. These time-sensitive, daily deals offer fans an opportunity to become part of the crowd at a fraction of face value, while teams benefit from additional revenue streams, and get fans in the seats.

Currently, Crowd Seats is available for sports fans living in Los Angeles, San Francisco, New York, Boston and Chicago, but will likely expand to other sports crazed areas. Fans and organizations are excited about Crowd Seats and should be ready to jump at the idea. In fact, a handful of teams have already been utilizing group-buying websites for the past two years. Many sports organizations, including the Dallas Mavericks, have experimented with Groupon and LivingSocial and had great results.

In a case study produced by Crowd Seats, deals involving tickets for NBA, NHL, and MLS games were reviewed. The combination of revenue generated through ticket sales via various daily deals sites and supplemental revenue generated at the stadium (Fan Cost Index) has resulted in NBA teams taking in an average of over $50,000/deal. The NHL and MLS based deals also did tremendously well.

Notable Deals:

  • Dallas Mavericks, October 2010, 4819 Tickets Sold, $173,000 Revenue
  • Toronto Raptors, March 2011, 2368 Tickets Sold, $101,000 Revenue
  • Toronto Raptors, November 2010, 3049 Tickets Sold, $97,000 Revenue
  • Colorado Avalanche, February 2011, 1784 Tickets Sold, $51,000 Revenue
  • New England Revolution, August 2010, 2515 Tickets Sold, $45,000 Revenue

It is clear that consumers and sports teams will greatly benefit from the first group-buying site specifically targeted towards their product. Additionally, with the NFL lockout currently in place and an NBA lockout looming large in the sports industry, league management and others believe that fans will get angry because of the lockout and will be less intrigued in professional sports because of the labor issues. Thus, bringing ticket sales and overall team revenue down. However, with Crowd Seats offering discounted seats to games fans will be more inclined to attend games, even if they are still angry over a labor situation or lockout. I know I will definitely attend NFL or NBA games for half off.

Now that the website is officially launched you can go and check it out yourself. Fans who want to receive future offers for local events can sign up for the” Deals Newsletter” at http://www.crowdseats.com. You can also follow Crowd Seats on Twitter, @crowdseats, or email Justin Cener at justin@crowdseats.com, if your sports organization would like to work with Crowd Seats.

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