Pacers hope Bird will fly with corporate partners. With club seat sales lagging and suite deals expiring at Conseco Fieldhouse, franchise is at critical juncture.
After watching average attendance climb from 12,618 to 18,345 per game through the 1990s, the Indiana Pacers have endured attendance declines each of the past three years.
The 2.3-percent drop last season was worse than the National Basketball Association's average half-point decline.
But with the rehiring of Larry Bird--this time as president of basketball operations--and a new marketing and advertising campaign, Pacers officials think they can turn the tide and add more sponsorship revenue to the bottom line.
"There's no doubt we've had a good response to our hiring Larry Bird," said Donnie Walsh, Pacers Sports and Entertainment CEO. "Larry has such a history with this state and I think his presence resonates on a lot of different levels. From a franchise standpoint, this is a great, great thing to happen to us."
With the sale of premium club seats lagging last year and with the lease on one-fourth of Conseco Fieldhouse's 69 luxury suites set to expire at the end of this season, the Pacers are looking for any kind of boost. Despite the attendance gains of the 1990s, the Pacers reported the team lost money six of the last seven seasons they called Market Square Arena home.
The opening of Conseco Fieldhouse in November 1999 paved the way to profitability, franchise officials said, but those profits have slipped since the inaugural season at the spiffy retro facility.
Pacers staffers said single-game and season-ticket sales, as well as interest in corporate sponsorships, have "significantly" increased since Bird was hired. Less clear is how hiring Rick Carlisle to replace Isiah Thomas as coach will affect sales.
Walsh said season-ticket renewals are at 95 percent with the Oct. 8 preseason and Oct. 31 home openers nearing. Season tickets hovered around 15,000 last season, down from more than 16,000 when the Fieldhouse opened. The fieldhouse seats 18,345.
A 5-percent drop in season tickets means another 40,000 or so single tickets to sell over the course of the season. With average ticket prices in the $50 range, the loss could top $2 million unless the difference is made up in single-game sales.
For the first time, Fieldhouse club seats --which cost $2,100 to $3,300 per season--didn't sell out to season-ticket holders last year.
"We had to try to make up for that during the year," Walsh said. "But it takes a lot of work. We're doing better at selling them as season tickets this year."
Pacers officials are already applying a full-court press to secure the 17 luxury-suite leases that expire after this season. With the 69 suites leasing for $89,000 to $175,000 annually, that's no small sum at risk. Most suites lease for more than $115,000.
"We realize the economy has been tough, but we feel that's beginning to turn," Walsh said. "The feedback we've gotten from all of our suite holders is that they really like them and we're confident we'll have a strong renewal rate."
Morris Wildey, Rosetta Advertising and Public Relations CEO, thinks Bird's hiring happened at an opportune time. Wildey's firm was hired by the Pacers earlier this year to handle advertising and PR for off-the-court matters.
"We plan on emphasizing in Indianapolis where we have run a streak of losing corporate headquarters and been beaten down, here's a guy who's come back home to revitalize something very important to many of us--basketball," Wildey said. "I think Larry Bird is very identifiable to a lot of Indiana businesses."
The allure of being associated with Bird, Wildey said, should help sell suites, which are primarily the domain of large corporations, as well as push corporate sponsorship packages.
"Look what happened when the [National Hockey League's] Phoenix Coyotes brought on Wayne Gretzke," said Becky Vallett, executive editor of Team Marketing Report, a Chicago-based sports marketing trade publication. "Phoenix got a big boost in ticket and sponsorship sales. So I think there will definitely be some positive results for the Pacers in bringing on Larry Bird."
But Bird alone won't be enough to sustain profitability, Vallett added. Winning will placate the basketball fans, but corporate partners will want more.
"Corporate interests involved in sports are looking more and more at the return on their investment," Vallett said. "I think the Pacers, and a lot of other professional teams, will have to become creative to generate the revenue needed to sustain operations and make a profit."
The Miami Dolphins, for instance, created a mini-Chamber of Commerce for suite holders, she said, with monthly meetings and other networking opportunities that often feature players and coaches as speakers.
The Pacers have shown a willingness to shake things up on and off the court. In May, the franchise ended its 14-year relationship with advertising and marketing firm Marc USA/Indianapolis. It hired Pearson McMahon Fletcher England to handle research, strategic planning, creative development and media buying.
In addition to Rosetta, it also brought aboard Promotus Advertising Co. as a consultant and adviser on reaching the urban market. The Pacers also have a national marketing agreement with Dan Klores & Associates of New York.
"There's a lot of newness to the franchise this year and we want to emphasize that," Walsh said. "Our advertising campaign is picking up steam now and I think you'll see a perceptible difference."
The Pacers revamped their sales staff during the off season and beefed up their telemarketing department to help with group, mini-season and single-ticket sales.
The average ticket price for a Pacers game was $42.33 last season, about $1.30 below the league average, according to Team Marketing Report. With no price increase for season and mini-season ticket holders, and only a small increase for single-game tickets, the Pacers are likely to be among the cheaper tickets in the league once again.
"The Pacers front office is showing it understands some of the market forces at play," Vallett said. "[Staff members will] have to continue to innovate as times change if they want to maintain profitability. But they're making some solid moves at an important time for this franchise."
http://www.ibj.com/topstories.asp?A=14798
After watching average attendance climb from 12,618 to 18,345 per game through the 1990s, the Indiana Pacers have endured attendance declines each of the past three years.
The 2.3-percent drop last season was worse than the National Basketball Association's average half-point decline.
But with the rehiring of Larry Bird--this time as president of basketball operations--and a new marketing and advertising campaign, Pacers officials think they can turn the tide and add more sponsorship revenue to the bottom line.
"There's no doubt we've had a good response to our hiring Larry Bird," said Donnie Walsh, Pacers Sports and Entertainment CEO. "Larry has such a history with this state and I think his presence resonates on a lot of different levels. From a franchise standpoint, this is a great, great thing to happen to us."
With the sale of premium club seats lagging last year and with the lease on one-fourth of Conseco Fieldhouse's 69 luxury suites set to expire at the end of this season, the Pacers are looking for any kind of boost. Despite the attendance gains of the 1990s, the Pacers reported the team lost money six of the last seven seasons they called Market Square Arena home.
The opening of Conseco Fieldhouse in November 1999 paved the way to profitability, franchise officials said, but those profits have slipped since the inaugural season at the spiffy retro facility.
Pacers staffers said single-game and season-ticket sales, as well as interest in corporate sponsorships, have "significantly" increased since Bird was hired. Less clear is how hiring Rick Carlisle to replace Isiah Thomas as coach will affect sales.
Walsh said season-ticket renewals are at 95 percent with the Oct. 8 preseason and Oct. 31 home openers nearing. Season tickets hovered around 15,000 last season, down from more than 16,000 when the Fieldhouse opened. The fieldhouse seats 18,345.
A 5-percent drop in season tickets means another 40,000 or so single tickets to sell over the course of the season. With average ticket prices in the $50 range, the loss could top $2 million unless the difference is made up in single-game sales.
For the first time, Fieldhouse club seats --which cost $2,100 to $3,300 per season--didn't sell out to season-ticket holders last year.
"We had to try to make up for that during the year," Walsh said. "But it takes a lot of work. We're doing better at selling them as season tickets this year."
Pacers officials are already applying a full-court press to secure the 17 luxury-suite leases that expire after this season. With the 69 suites leasing for $89,000 to $175,000 annually, that's no small sum at risk. Most suites lease for more than $115,000.
"We realize the economy has been tough, but we feel that's beginning to turn," Walsh said. "The feedback we've gotten from all of our suite holders is that they really like them and we're confident we'll have a strong renewal rate."
Morris Wildey, Rosetta Advertising and Public Relations CEO, thinks Bird's hiring happened at an opportune time. Wildey's firm was hired by the Pacers earlier this year to handle advertising and PR for off-the-court matters.
"We plan on emphasizing in Indianapolis where we have run a streak of losing corporate headquarters and been beaten down, here's a guy who's come back home to revitalize something very important to many of us--basketball," Wildey said. "I think Larry Bird is very identifiable to a lot of Indiana businesses."
The allure of being associated with Bird, Wildey said, should help sell suites, which are primarily the domain of large corporations, as well as push corporate sponsorship packages.
"Look what happened when the [National Hockey League's] Phoenix Coyotes brought on Wayne Gretzke," said Becky Vallett, executive editor of Team Marketing Report, a Chicago-based sports marketing trade publication. "Phoenix got a big boost in ticket and sponsorship sales. So I think there will definitely be some positive results for the Pacers in bringing on Larry Bird."
But Bird alone won't be enough to sustain profitability, Vallett added. Winning will placate the basketball fans, but corporate partners will want more.
"Corporate interests involved in sports are looking more and more at the return on their investment," Vallett said. "I think the Pacers, and a lot of other professional teams, will have to become creative to generate the revenue needed to sustain operations and make a profit."
The Miami Dolphins, for instance, created a mini-Chamber of Commerce for suite holders, she said, with monthly meetings and other networking opportunities that often feature players and coaches as speakers.
The Pacers have shown a willingness to shake things up on and off the court. In May, the franchise ended its 14-year relationship with advertising and marketing firm Marc USA/Indianapolis. It hired Pearson McMahon Fletcher England to handle research, strategic planning, creative development and media buying.
In addition to Rosetta, it also brought aboard Promotus Advertising Co. as a consultant and adviser on reaching the urban market. The Pacers also have a national marketing agreement with Dan Klores & Associates of New York.
"There's a lot of newness to the franchise this year and we want to emphasize that," Walsh said. "Our advertising campaign is picking up steam now and I think you'll see a perceptible difference."
The Pacers revamped their sales staff during the off season and beefed up their telemarketing department to help with group, mini-season and single-ticket sales.
The average ticket price for a Pacers game was $42.33 last season, about $1.30 below the league average, according to Team Marketing Report. With no price increase for season and mini-season ticket holders, and only a small increase for single-game tickets, the Pacers are likely to be among the cheaper tickets in the league once again.
"The Pacers front office is showing it understands some of the market forces at play," Vallett said. "[Staff members will] have to continue to innovate as times change if they want to maintain profitability. But they're making some solid moves at an important time for this franchise."
http://www.ibj.com/topstories.asp?A=14798