As discussed in this chapter, a feasibility study for a sport stadium requires forecasting annual attendance and total revenues at the facility. Consider the following hypothetical situation: A small group of men and women in Ventura, California, are interested in building a minor league baseball stadium and moving an existing Single A franchise to the stadium. They plan to locate the stadium on the edge of Ventura’s central business district. They would like you to answer a few key questions, given your expertise in sport management. For each response, give the reasons for your answer and the methods you used to arrive at it.
case questions:
1. Assuming that the club is average in terms of performance on the field, what would be the expected attendance per season during a typical year (once the “honeymoon effect” has worn away?
2. What revenue would you expect to be generated from tickets, concessions, parking, and merchandise?
3. What revenues would you expect from naming rights and sponsorship?