Cash flow Blues through lack of season ticket sales

In our Case Insight on The Reebok Stadium (page 173) we discuss how capacity is filled with three different types of customer, 40% of whom are season ticket holders.  This news story about the Cardiff Blues rugby team illustrate how important season ticket holders are.  Normally the Blues would put their season tickets on sale on the 1st February – six months before the first match kicks off.   Due to the controversy surrounding the format of the European cup competition, they are unable to do so right now.

This illustrates that season ticket sales not only assure that a proportion of capacity is always filled throughout the operating period i.e. season, but also the importance of such sales for cash flow.  Sports operations are typically seasonal, with a playing season and an off season.  But costs, such as salaries, wages and stadium upkeep, are ongoing.   So generating revenue during the off season is important if the operation is to be financially robust.

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This entry was posted in Chap 07 Capacity and demand, Sector: Entertainment & Sport and tagged , . Bookmark the permalink.

2 Responses to Cash flow Blues through lack of season ticket sales

  1. Jamie says:

    Peter Day covered a similar issue faced by theatres with pantomimes – apparently tickets go on sale for next year as soon as the current years pants starts, and they constantly monitor progress against the previous years week for week sales. http://downloads.bbc.co.uk/podcasts/radio/worldbiz/worldbiz_20131219-2100a.mp3

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