Revenue Talk
After the recent article on Nampa I wanted to take a moment to discuss revenues. Now if you want to know about membership revenues just google the soccer club that is fan owned in the UK. I’m not going to discuss this, because in the next month or two we should have a much better idea about membership totals. I’d like to focus on revenues that involves selling sponsorships and season tickets. First why don’t we focus on season ticket sales. For this we are going to assume we have a large market and venue like Nampa for example. I will look at what I consider to be worst case, average case, and best case senerios.
For this I will assume we have 3 different season ticket packages (courtside, lower level, upper bleachers). There will be 100 courtside seats and 1500 lower level seats available, and beyond that the rest of the ticket sales will be general admission. Also we will assume that our IBL team will only play 10 home games their first year. Courtside tickets will sell for $299. Lower level seats will sell for $149. General Admission seats will go for $69. To find out the cost per ticket just divide these regular season prices by 10 games. That would mean general admission per game would be $6.90 for season ticket holders. That likely would include a discount for purchasing season tickets. Those that just purchased a ticket at the gate would likely pay a little more. These prices are just estimates of what the OMT members might decide for this example.
For the worst case senerio we will assume only 1100 fans show up to the games (40 courtside, 500 lower level, and 560 general admission). With this worst case senerio we would generate $125,100 in revenues.
For the average case senerio we will assume 1800 fans show up to the games (65 courtside, 800 lower level, and 935 general admission). With this average case senerio we would generate $203,150 in revenues.
For the best case senerio we will assume our IBL team leads the league in attendence. With proper marketing and a venue like Nampa this would be possible. So, we will assume 2900 fans show up to the games (100 courtside, 1200 lower level, 1600 general admission). With this best case senerio we would generate $319,100.
I would suspect local corporate sponsorships would be in the range of $500 to $10,000 per sponsor. Hiring account executives and sales professionals would be key to tapping into these revenues. Outside of local sponsorships OMT might be able to land a primary sponsor. Primary sponsorships are popular in Europe. The Primary sponsor would likely advertise their company logo on the club jersey. I won’t speculate on this revenue so OMT can have the best position to negotiate in the future.
The point in my message is that outside of club membership we could bring in several hundred thousand dollars a year in local corporate sponsorships and ticket sales. When you add in yearly memberships and national sponsors the yearly budget should skyrocket into the 7 figures.
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