Quote:
Originally Posted by Oilkountry
What the hell are you going on about? I never said anything about the NFL. I made a comment about how the CFL's attendance is down.
33k Isn't too big for the riders at all in fact it's probably just about perfect. If they can sell out 37,000 seats, keep your demand high by only offering 33,000 which drives ticket prices and keeps your season ticket holders feeling lucky. In theory you make the same/more gate revenue with a smaller venue and you've created a situation where ticket scarcity actually protects your business model. Redblacks starting to build this culture at TD place...not quite there but starting
"In this business Your building has to fit your market, As soon as your supply outstrips your demand it's a slippery slope" -Mark Chipman 2009
Which bring me to my next point.
Would you rather have the Senators situation or the Jets? Similar market, Very different business model. Ottawa has 18,500 fans showing up to a 20,000 building. What ground do they have to stand on to raise ticket prices? Why would season ticket holders feel the urgency to hold on tightly to them? They could easily grab a walk up any given night? Sens are shedding seats from the CTT. And if they build another rink (IF) I bet It's 18,000 seats or less
Jet's have 15,294 fans Showing up to a 15,294 seat building game in and game out. 13,000 season ticket holders and 8000 ready to pounce if one frees up. 98% renewal rate. Guaranteed gate revenue and the ability to raise prices 2-3% at a time every year.
If you need more proof than look at the packers situation, lambeau seats 80K but the packers have a season ticket wait list of 115,000 people. That's hundreds of millions being left out on the table. why don't they build another 30-40k more seats at lambeau? It's definitely doable? Why don't they build a new 120k stadium? Because they can pull the same revenue from 80K, keep raising ticket prices and those 115k people frothing at the mouth will keep season ticket holders thinking twice about giving them up.
To me the riders are the packers of the CFL and they are very aware of that...and that my friend is why they don't build a 40K stadium  it's just bad for business
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I was talking about American leagues in general (which are amongst the top in the world). Even with the decrease in average (which I think was mentioned the other day that it's actually quite stable year over year). The year previous it came down because the Riders went from an average of 37k to having capacity capped at 33.5k or so again.
Supporting ticket prices isn't a good idea in Saskatchewan; it does not make us feel "lucky" to have our tickets go up just to keep up with the Jones's, as happened this year... The main reason we heard was "to keep up with the rest of the league". There wasn't hard blowback, but this reason wasn't one that goes over well here.
The other issue... we support the Riders in many more ways than ticket revenue. In terms of dependence on ticket sales, the Riders are at the bottom of the pack. They bring in over 40 million in revenue, 15 mill of which is tickets (working from memory and approximations). The fact that ticket revenue is higher than some teams bring in overall (it generally takes 15 mill to run a team and Toronto - and Hamilton until recently - were losing money on that basis), isn't a good look for raising prices.
As I said previously, the Riders brand is based on the "owners" to get too much into the "rich man's" ticket game... luxury event... exclusivity... etc... would do far more damage to the brand than help it.
This is where the idea of the value of the team comes in... It's an interesting topic to talk about for comparison's sake, but the thought that some private owner could buy the team for that price and have the same success is somewhat laughable. The support is predicated on the fact that all money spent on the Riders either supports the team or is filtered back into the province (the Huskies, Rams, Hilltops, Thunder, and High School programs all over).
Normal laws of economy/business (supply-demand, scarcity of product driving demand/prices, etc) don't apply to the Riders as they do to other teams. And I often find that people not from here have trouble adjusting their thinking to the different dynamic present.
Yes, they will do well with 33k, but just for the appeal to the masses/future growth, I wish that they were at 35k instead. Some lower end tickets available would help far more in terms of growth and further market saturation than fewer tickets with higher prices would help the profit margin (which is irrelevant in the sense that the Riders are "not for profit"). I think some polls had the Riders at 65% interest in Saskatchewan... that's outsized for even hockey markets.
Regarding the Jets comparison... the NHL is known to be an upper-crust type establishment now... not all that many can afford season tickets, and this has been the case for a very long time... not so for the CFL or Riders. The issue with trying to turn the CFL into this type of league is that the players don't make millions like in the NHL.
But anyway... we are quibbling over a 6% difference in seating capacity. It's great that this is even a possibility considering where the current Mosaic Stadium is (quality-wise).