eCommerce Blog Week 3

Stadium Sponsorship Grows to New Levels
by Stephanie Clifford


http://www.nytimes.com/2008/12/11/business/media/11adco.html?_r=1&adxnnl=1&goback=.hom&adxnnlx=1229112161-XzlE0WgYlXUERLKWrXCx+g

I ran past this article while catching up on some news within a group that I am a part of on LinkedIN. The article talks about how stadium sponsorship is being taken to a new level, beyond the usual signs you see at sporting events from advertisers. More specifically, the article is talking about sponsorship inside the Indianapolis Colts new home, Lucas Oil Stadium.

At the stadium, there are gasoline pumps in the north gate, sponsored by Lucas Oil, airplane seats in the AirTran Airways food court in the northwest section and cars in the northeast corner, sponsored by Chevrolet. The Indiana law firm of Baker & Daniels sponsors the club lounges at the western end of the stadium, and Advantage Health Solutions, a medical plan, sponsors the club lounges at the eastern end. Sprint Sponsors the east gate, Huntington Bank the west, and Hhgregg the south; which is a whole different story.

At Lucas Oil Stadium, Hhgregg, based out of Indianapolis, has 26,000 square feet (almost the size of one of their stores) which they have given the name of "appliance zone." Within this "appliance zone" they showcase appliances in a way that relates to football. Appliances include: dishwashers, refrigerators, washing machines, televisions, dryers and ovens.

I feel that Hhgregg has started a trend, demonstrating that it's very important for facilities to provide the brands and companies they're associating with a lot more than just signs and tickets. I am sure that Hhgregg realizes that fans are not going to a sporting event to buy a dishwasher or television, but they are reaching an audience.

Lucas Oil Stadium isn't trying to bombard patrons with advertisements during the event they are hosting, they are just showing the sports industry that there is a whole other way to collect revenues than from tickets, television deals, merchandise and your usual sponsor signs and advertisements.

eCommerce Blog Week 2

Reds' Season Doesn't Merit Price Hike

by Associated Press

http://sports.espn.go/mlb/news/story?id=3746777

This article found on espn.com explained how the Cincinnati Reds have become the latest big league team to freeze ticket prices for next season, basing the decision on the team's poor play rather than the bad economy. The article also explained how the Boston Red Sox, Houston Astros and Pittsburgh Pirates recently announced they'd hold prices for 2009, while Washington and San Fransisco plan on cutting the cost of some seats.

Major League Baseball Commissioner Bud Selig told clubs to be sensitive to the nation's tough economic conditions. But the Reds said their performance during the season is the reason they decided to freeze ticket prices for next season. In 2008 the Reds went 74-88, their eighth straight losing season and 13th in a row without reaching the playoffs. Reds chief executive Bob Castellini felt strongly that ticket costs shouldn't go up even one dollar given the way the team played. The last time the Reds froze their ticket prices was in 2005.

The article also explained how the Philadelphia Phillies are among several teams that are raising prices for next year. The Tampa Bay Rays, the American League Champs, who went from worst to first announced they are going to slightly increase ticket prices for select games. Not surprising at all, the article mentioned the New York Yankees and Mets, who are both moving into new ballparks in 2009, as seeing significant increases in their ticket prices.

I feel that the Reds are doing some good for themselves by not raising their ticket prices for next season. They are trying to fill the stands and realize that their teams poor performance the last 8 years and the bad economy do not merit an increase in ticket prices. What surprises me the most about this article is the price freeze the Boston Red Sox put on their tickets. Boston is a strong team year in and year out and sell out every game, yet they decided not to raise their tickets. I would say that this a good management move due to the poor economy, but eventually will lead to a profit lose they could potentially have gained because the Red Sox would not have a problem selling out every game. From the article, I am not surprised that the two teams who made it to the World Series are increasing their ticket prices and that the two teams who are moving into new ballparks are increasing their ticket prices as well. 

eCommerce Blog Week 1

A Brief History of Stadium Naming Rights 

by Ethan Trex

http://www.mentalfloss.com/blogs/archives/20561

This blog wrote by Ethan Trex talks about how stadiums become marketing billboards capable of seating tens of thousands of people. In Ethan's blog he goes into detail about the history  of the first stadium that had naming rights, as well as valuable lessons learned from allowing corporate powerhouses to hold naming rights and the complication on whether or not Citigroup should be spending $400 million for the naming rights of the New York Mets new stadium.

I found this blog interesting as it described the history of stadium naming rights. The blog began detailing how Sportsman's Park in St. Louis (now known as Busch Stadium) was the first stadium to incorporate stadium naming rights. Then how the Houston Astros learned a valuable lesson, as they sold their stadium rights to the local energy company Enron, but bought back the naming rights because of Enron's giant scandal and fall. The part I found most interesting from Ethan Trex's blog was his mentioning of Citigroup's proposal to spend $400 million dollars for the naming rights of New York Mets new stadium for 20 years. To me this is ridiculous, due to the fact that the banking industry is failing and Citigroup needs the government to help bail them out. I do believe that there are other less expensive ways for Citigroup to advertise than for them to slap their name on a stadium, especially when their industry is begging for help from the government.