February 07, 2006
Rocket Revenue
Gary Jacobson of the Dallas Morning News examines how much revenue Roger Clemens might bring to the Rangers:
In 2004, Clemens' first season with the Astros, the club increased attendance by 630,000.
Doing the same thing in Arlington this year would generate more than $18 million in extra ticket, concession, merchandise and parking revenue for the Rangers, according to an analysis by The Dallas Morning News. As a fan magnet, other than a new stadium, nothing beats winning, sports business experts say.
It seems to me the News is making a pretty conservative estimate of how much money the Rangers get from each fan:
Depken, who has studied the economics of Major League Baseball for about eight years, estimates that the Rangers receive an average of about $18 for each ticket sold and another $11.50 for parking, concessions and merchandise.
The News used his total – $29.50 per fan – to make its revenue estimates, based on increased attendance assumptions.
An independent minor league owner once told me that a fan in a seat is worth $20 to his club. I would believe a major league fan is worth much more than that. It could be the News story is talking net revenue rather than gross revenue.
Don't confuse the calibre of play with the calibre of fans -- or their budgets. A trip to a Fenway will cost you about $200 on tickets and parking alone whereas a trip to Fraser Field, home of the independent-league North Shore Spirit, will cost you about $50. Let's put it this way: Before a game, the fast-food restaurants aren't mobbed on Boston St. the way they are in Kenmore square.
Honestly, is there any realistic shot of Roger going anywhere but back to the Astros? This seems like speculative media fluff.
