6 Inside Ticket Sales Managers walk into an Arena…

Ok, it sounds like the great start to a joke, but in essence this piece is more about how those managers got into their coveted sports jobs.

I often get asked how I got my foot in the door in professional sports and the answer is usually a bit longer than expected.   Like many of those  whom I’ve crossed paths with, the opportunity that helped launch my sports career was being a part of an Inside Sales Department with the Chicago White Sox.  If you are looking for a book on the topic, check out Mark Washo’s Break Into Sports  (or find him on Twitter @BreakintoSports).  I’ve recommended this book to college grads looking to get into sports for a while.

As so many sports executives get their start in ticket sales, I figured I’d round up a few Inside Sales Managers around professional sports jobs and knock out a few simple questions to learn more about this revenue generating niche.  The group has over thirty plus years of combined experience in professional sports and includes;  Cody Haynes (Houston Rockets, NBA), Eric McKenzie (Cleveland Indians, MLB), Jude LaRose (Chicago Fire, MLS), Derek Iversen (Colorado Avalanche, NHL & Denver Nuggets, NBA), Travis Apple (Pittsburgh Pirates, MLB) and Jake Reynolds (Washington Capitals, NHL & Washington Wizards, NBA).

Insiders on Sports Jobs

1. Did you begin your sports career in an Inside Sales Environment and/or how did you ascend to your management role?

Jake R.-  Yes, I began my career in Inside Sales with the Indiana Pacers. I spent 4 months in Inside Sales before moving into a senior sales role. After a year with the Pacers, I spent two years in New York with the Giants where my first year was focused on selling PSL’s in preparation of opening their new stadium and in my second year, I transitioned over and focused on selling suites. I have now been with Monumental Sports and Entertainment for just over a year overseeing the Inside Sales group for the Wizards, Mystics and our partnership with Georgetown Basketball.

Cody H.-   I started off in Inside Sales with the Phoenix Coyotes of the NHL right out of college.  I was then promoted to Group Sales with Phoenix.  I then accepted a position as a Season Ticket Sales Executive with the Houston Rockets.  After 1.5 seasons as a sales rep I was then promoted to Inside Sales Supervisor.

Travis A. -  I started in Inside Sales in June 2007 with the Atlanta Hawks, Thrashers, and Phillips Arena.  From November 2007 to July 2008, I was in New Season Ticket Sales, and from August 2008 to September 2009, I was in Premium Seating with the Hawks/Thrashers.  Throughout my time in New Season Ticket Sales and Premium, I also held a manager in training position where I helped with training sessions, appointments, interviews, and other duties that the IS Manager needed help with.  In October 2009, I took over the Inside Sales position with the Pittsburgh Pirates.

Derek I.-I began working for Kroenke Sports & Entertainment’s as a Summer Sales Associate intern for the Denver Nuggets after graduating from college.  I was brought on as an Inside Sales Representative for the Nuggets and Avalanche, and from there moved on to an Account Executive role with the Denver Nuggets.  After two years as an AE, I was promoted to Manager of Inside Sales for the Nuggets and Avalanche.  In addition to managing the Inside Sales Department, this year I was also given the opportunity to manage the sales and service department for KSE’s NLL team, the Colorado Mammoth.

Eric M. -Yes, I started with the Phoenix Suns Inside Sales department immediately after finishing college. I then spent 3 years working in group sales with the Arizona Diamondbacks before accepting my first management opportunity in San Antonio with the Spurs. Most recently, I have relocated to Cleveland, OH to accept a new position with the Cleveland Indians.

Jude L. -  Yes, I did begin my sports career in an Inside Sales environment. After a seasonal position with the National Pro Fastpitch’s Chicago Bandits – from which I hold fond memories – I was hired as an Inside Sales Representative for the defending Arena Football League Champion Chicago Rush.  I cut my teeth with that club and worked alongside and for some really talented people.  I feel rather fortunate to have had the opportunity to learn from some great sports business minds during a time that we were having such success on and off of the field.  After three months on the job as an ISR, I was promoted to an Account Executive role, selling the full suite of ticket products.  From there, I was promoted to Senior Account Executive/Youth Football Coordinator.  My duties remained largely the same, with the additional responsibility of becoming a student of the Chicagoland Youth Football landscape.  We booked local area teams for pregame and halftime scrimmages with a ticket requirement tie-in and recognized the importance of youth development and participation as evidenced by our commitment to appearing at youth football year end banquet and award ceremonies.  After three years with the Rush, I moved on to the American Hockey League’s Chicago Wolves as a Senior Account Executive.  My responsibilities remained largely in line those of an Account Executive who is responsible for selling season and group tickets.  Since I can remember, I have always enjoyed leading and imparting any piece of information I had to share. The role of an Inside Sales Manager is one that has greatly appealed to me since the days I first recognized how much I enjoyed sales and acknowledged that I was developing my own sales philosophy through picking and choosing from the better sales minds of the world.

2. When did you realize you wanted a career in the sports industry?

Jake R.-  When I was in high school. I was fortunate enough to have a family member in the industry, so I was around it enough to know this was the business for me.

Cody H. –   I knew I wanted to work in sports upon graduation of high school.

Derek I. -  I went to my first ever NBA game in 2004, which happened to be Game 5 of the NBA Finals between the Lakers and Pistons.  Feeling the electricity in the arena that night when the Pistons won the NBA Championship was the moment I knew my dream was to work in pro sports.  When I was a junior at the University of Wyoming, KSE’s former VP Paul Andrews spoke to the College of Business about internship opportunities.  Following my junior year I applied for a sales internship and was not hired, but I was fortunate enough to earn an opportunity after graduation.

Eric M. -  As many sport-minded college students, I knew that I wanted to work in sports, but had always thought that it would be on the more attractive side (player or public relations, game ops, etc.). However, I visited Phoenix in February of my Junior year of college and met with one of their Group Sales Account Executives and fell in love with the business side of sports. Since then, it has always been my passion to work on the business side of sports.

Jude L. – If you played sports as a child and grew up with the sports teams of the ‘80’s and ‘90’s, it was difficult, at least for me, to watch the movie Jerry Maguire and not want a career in this industry.

Travis A. -  I always knew I wanted to do something in sports and through an internship experience at Mansfield Motorsports Speedway, I began to sell trackside banners and fell in love with the sales end of the business.  Throughout my senior year of college, I was applying for Ticket Sales jobs because that is where I wanted to be.

3. What is the most difficult part in managing an Inside Sales Staff?

Cody H. –  I would say keeping them motivated and not making their job seem boring.  Also, keeping the office fun and relaxed while still maintaining a serious, professional atmosphere knowing that we have aggressive goals to reach.   There are down times especially in the offseason where there is no excitement of the season.  They have to rely on self-motivation and a lot on myself to make their job fun.

Travis A. -  I think the most difficult part in managing an Inside Sales Staff is not having enough time in the day to make phone calls/go on appointments/ect. with 18 reps on a consistent basis.  I realized I have to give the reps the tools to succeed and they will have to implement them on a consistent basis.

Derek I. -  The most challenging part is motivating 10 different individuals with 10 different personalities that may be different from my own.  The things that drive me may be different from my staff, so getting to know what buttons to push takes some time.

Eric M. -  I think the most difficult part is also one of the most rewarding. When managing a successful Inside Sales Department you will consistently be promoting reps into Sr. level sales roles within your own organization, or perhaps, other organizations. It’s so exciting to see a rep that has given their absolute best over a 10-12 month program and finally get that “call up” to the Sr. staff. However, those constant promotions keep the Inside Sales Manager very busy with year-round recruiting, training and coaching of new reps in order to keep the pipeline full of future stars.

Jude L. -  I wish I could provide a better answer to this question, but with just a little bit less than a month under my belt, I feel I don’t have enough of a sample size to give a fair response.

Jake R. -  I have a large staff of 18 reps, so making sure I am able to spend quality time with each of them and help them get better every day.

4. What do you find the most rewarding about your role with your team?

Eric M. – The most rewarding part of my role is in getting to work with hungry, energetic and positive professionals. Surrounding yourself with those types of people will always challenge you to bring your best, to keep a positive attitude, and to always look for ways to improve yourself.

Travis A. -  The most rewarding part of my job is seeing an Inside Sales Representative go through IS and then land a full-time job and become a #1 rep in another department or with another team.  It’s always great to get calls from other managers saying I am so glad I hired “person”, do you have anyone else just like them that I could hire?

Cody H. -  I really enjoy when someone I went through the interview process with and hired is very successful within the sports industry.  It makes me proud to see them get promoted within the industry and grow as an individual and professional.

Derek I. - Being able to offer someone their first opportunity to begin a career in sports, and watching them grow as a salesperson and a business professional is very rewarding.  There is a major sense of satisfaction in watching that light bulb turn on, and watching the progression of talented employees.

Jake R. -  Being able to mentor and coach young, talented people and watch them to take that next step in their career.

Jude L. -  I would take great pride in knowing I had a hand in helping young sports professionals realize and actualize their dreams.

5. What is the most unique sales contest you’ve set up or been a part of?

Derek I. - My favorite contest to run is our Fantasy Sales Contest in the fall.  Each representative owns a fantasy team, and every week they select a colleague to be their starter.  Teams earn points based on their own performance as well as their starter for the week.  Weekly prizes are up for grabs, as well as grand prizes for the top three teams at the end of the contest.  It is fun to see individual competition combine with an element of teamwork in the department.

Jake R. -  Deal or No Deal. I had 30 envelopes posted on the wall of my office that contained prizes ranging from a $5 Dunkin Donuts gift card to a bonus day off to an iPod touch. The sales rep that had the most revenue for that day picked envelope and was then given an offer from the bank(myself). The rep then decided whether to risk what was in the envelope or take an offer they were sure of. It was a great contest that engaged the reps on a daily basis became very competitive and helped drive a tremendous amount of revenue.

Cody H. –  2 really stand out to me.  The first is an individual contest where each rep starts of with an $1,000 bonus.  Each day that the rep doesn’t sell $100 is taken away.  Money is a huge motivator on our floor as you would imagine.  The second is a team contest based on the game of poker.  Each team gets a card when they make a sale that qualifies.  They can either pull from the stack or steal a card from another team.  We printed oversized cards and placed them on the wall.  Poker rules apply to determine the winner.  This game really got our floor’s competitive juices flowing.  The winning team wins a cash price.  We have also given away trips and cruises as well.

Travis A. -  Trip to Barnsley – Each individual had a goal to hit for FSE’s and Revenue and when they hit the goal, they were able to get on a bus to Barnsley Gardens which is a resort where you could golf, enjoy outdoor activities, etc.

Eric M. – From my experiences, any contest that includes a beach or Vegas has always been well received. However, there have been 2 others that have stood out from my experiences:

1. My favorite as a rep was one in Phoenix where we were asked to submit the 10 things we would most want to have in this world if we had $1 million. Management then took one item from each person’s list and rolled out a contest where the winner got to pick one thing on the list, and they didn’t have to pick the item they originally chose if they saw something better. The winner ended up taking a 4 night cruise for 2 out of San Diego.

2. My favorite in management was a contest where reps earned ping pong balls for different hustle and revenue components. At the end of each week we would pull winners from the “lottery” of ping pong balls for gift cards. At the end of the contest we chose winners for the large grand prizes. Included were courtside seats for a game, a resort/spa/golf package for a 3-day weekend, and a cruise.

Jude L. -  At the Rush, we had a sales contest which was centered around the World Series.  The season ticket pricing levels and number of units sold helped determine our point system which was modeled off of the elements of baseball play i.e. home run, triple, bunt, double play.  Our Ticket Manager sent out a press release before the contest commenced.  It set the stage and gave everyone a laugh.  As each sale came in, the ticket staff would receive an e-mail in the form of a play-by play describing what the rep just sold: “And Dooley sits on a curveball and goes yard with three full seasons in the yellow.”  We had our fun with it.

Qualities Sports Jobs Candidates Should Have

6. What are six adjectives that describe candidates you look for?

Jake R. – Passionate, competitive, intellectual curiosity, coachable, driven and Confident

Cody H. – Self-motivated, Creative, Passionate, Well-spoken, Positive, and Caring/Team player (Everyone within the organization helps each other.  At the Rockets, we have a “One Team” mentality.)

Derek I. – Confident, Enthusiastic, Articulate, Personable, Dedicated, Desire

Jude L. – Aggressive.  Positive.  Personable. Open. Energetic. Hungry.

Eric M. - Positive, honest, hard-working, ambitious, aggressive, persistent and humble (I know, that’s 7) 

Travis A. – Work Ethic, Competitive, Coach ability, Confident, Commitment and  Passion

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About Tyler Johnson

Tyler Johnson is an innovative thinker inspired by the likes of Bill Veeck, Jon Spoelstra, Pat Williams & Brooks Boyer. Currently working for Kroenke Sports & Entertainment as a Group Sales Account Executive for the Denver Nuggets. Prior he worked as the New Business Development Executive with the Chicago White Sox. Tyler has also worked directly with the inventor and creator of Arena football and also for Mike Ditka’s former Chicago AFL franchise. As a former collegiate athlete and business sensed individual Tyler ventured to combine his passions to get into the business side of sports.

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Plato once said, “You can discover more about a person in an hour of play than in a year of conversation.”  Plato lived almost 2400 years ago.  Before social media, before the phone, before the fax, before e-mail and before the pony express.

In today’s value driven business climate I feel this getting to know the person, not the e-mail address or the @Plato, is where real connections and money are made.  Notice!  Connection comes first.

Technology has come a long way since Plato uttered these words, but the make-up of humans has not.  Trust, respect and likeability are still found to be the top reasons people and companies do business with each other.  Building rapport can come in many more ways these days, but I can’t argue with the logic in “you can discover more about a person in an hour of play than in a year of conversation.”

As the economy has shifted more times than a keyboard and budgets slashed more ways than Guns’n’Roses, people still remain at the core of business.  Building relationships based on trust doesn’t happen in 140 characters and it doesn’t happen through a month long chain of e-mails.  Real connections, real networks, real deals, take real investments in people.  By no means am I implying we ignore the enormous value of social media, as it is one of the greatest resources for new business opportunities at our finger tips.  The point I am trying to make is taking the online, offline, is where you will maximize the investment in the time you’ve spent networking online.

When Washington began re-shuffling the auto, financial and housing markets like a Vegas deck of cards, client entertainment budgets changed, but client entertainment did not.  The value only increased.  Markets shifted and with it, market share.  Those who take care of people, in turn ensure that business is taken care of.

Since the collapse of the sports ticket bubble about two  years ago, entertainment spending has been back on the rise.  In the third quarter of 2010, large businesses had increased entertainment spending by 9%.  Small businesses ended the quarter on the bench with a 5% increase.

In a published study by SEAT Magazine this past fall, an overall analysis of corporate/business Premium Seating Customers showed that 48% of these organizations have less than 20 employees.  The biggest group based on employee size was companies with less than five employees with 26% of the market.  Revenue wise, 51% of the premium ticket market generates less than $5 million in sales volume per year.  The largest groups of buyers at 28% are those companies with annual sales under $1 million.  So throw away the old illusion that it is only the big dogs that are buying.

By taking your client to the ballgame, you’ll learn more about that person, what’s important to them, what’s not and how you’ll even fit into the picture once the final horn sounds.  That wealth of the moment can’t be summed up in a status update or memo.  Real connections happen in real time with real people.  Applying additional effort into the relationship will increase your success on a current project, enhance your opportunity for future business and make work that much more enjoyable.  Companies that realize relationship management is constantly part of the job will create memories with their clientele and the clientele will help create business.

Bonding doing something your client or prospective client is passionate about is a great opportunity; it could be a game changer for your career with a small investment of your time.  However, be cautious about selling while entertaining as that shouldn’t be the main focus.  Continue to establish and reinforce rapport.  You can sell later, and it will be easier.

By getting out of the office and over to the arena, you gain access to their real lives, and they into yours.  When executed properly you’ll build a level of rapport that evolves far beyond the ‘guy who tries to sell me something I don’t need’.

People often forget that three of the most influential factors in doing business with someone are trust, respect and genuine likeability.   By entertaining you can easily lay the ground work for all three.  Think about the last sporting event you went to.  You might not recall all the sways of the game or even the score.  I do bet that you remember how you got your tickets, what you ate, or who invited you to come enjoy the game though.  These are memories you can create for your clients.

About Tyler Johnson

Tyler Johnson is an innovative thinker inspired by the likes of Bill Veeck, Jon Spoelstra, Pat Williams & Brooks Boyer. Currently working for Kroenke Sports & Entertainment as a Group Sales Account Executive for the Denver Nuggets. Prior he worked as the New Business Development Executive with the Chicago White Sox. Tyler has also worked directly with the inventor and creator of Arena football and also for Mike Ditka’s former Chicago AFL franchise. As a former collegiate athlete and business sensed individual Tyler ventured to combine his passions to get into the business side of sports.

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In 2002, two former LSU athletes were rehabbing their recent injuries with Jack Marucci back in Baton Rouge the topic of conversation turned towards Marucci’s recent hobby. This hobby eventually led Eduardo Perez of the St. Louis Cardinals to do something no one else had done yet in Major League Baseball.  By taking a different approach to the business and providing a higher quality product to the market, Marucci helped create a whole new ballgame.

Jack Marucci, the Head Athletic Trainer at Louisiana State University first started perfecting the craft of hand-made wooden baseball bats as a hobby, originally making them for his son. As the two former LSU athletes, Kurt Ainsworth and Joe Lawrence, rehabbed, they spoke of what to do after their professional MLB careers.  Marucci’s hand crafted bats became that future. By 2003, the focus on detail and quality craftsmanship to ensure every hand crafted bat was a ‘gamer’ brought them into ‘on deck’ circles and into the batter’s box.

Kurt Ainsworth was a former LSU All-American and 1st Round draft pick by the San Francisco Giants. He also played on the Gold Medal winning Olympic team in 2000. Joe Lawrence was a former USA Today high school All-American and played professionally for the Toronto Blue Jays. After 8 years in professional baseball Joe returned to LSU to play football.

In speaking with Kurt he recalled: “from my experiences in the big leagues, about half of the bats you’d order would not be what we call gamers,” ‘Gamers’ being a bat that is Major League ready and that the hitter is accustomed to. Kurt went on: “ the quality of service and in the bats just did not seem to be there.” As other bat companies operated their volume based business, Marucci bats intended on being a new alternative.

From Jim the master billet engineer, to Tobais the log cutting craftsman at the wood mill, to Brett Laxton (another former MLB player) the bat craftsman in Baton Rouge, the precision and quality of each product is stressed. “Before a bat reaches an MLB player, it’ll have gone through nearly a dozen hands,” Kurt exclaims, attesting to the quality control of Marucci. Conversely, it takes Louisville Slugger 47 seconds to make a bat.

In 2003 Eduardo Perez was the first MLB player to swing a Marucci and Barry Larkin was the first to score a hit in the big leagues with one. As the word of mouth spread between MLB players, so did the demand for Jack’s bats. After 2009 over 300 MLB players were swinging Marucci. The 2006 National League MVP Ryan Howard swung Marucci, as did Albert Pujols during his 2008 and 2009 MVP campaigns.

Quick Stats on Marucci:

• 2 Number of MVP’s won by Albert Pujols while swinging Marucci
• 3 Total Number of MVP’s won
• 5 Number of home runs belted by Chase Utley while swinging Marucci in the 2009 World Series.
• 18 Number of 2009 World Series hitters that swung Marucci.
• 19 Number of 2009 All-Stars that swung Marucci.
• 20 Number of Marucci Employee’s
• 30,000 Number of wooden bats produced per year

Perhaps the most remarkable statistic about Marucci’s growth was the number of paid endorsements: Zero.

Reed Dickens, CEO of Marucci Sports: “We’ve received twice as many orders from MLB players by the All-Star break this season.” As the number of MLB players who use Marucci increases, the credibility and dependability of Marucci has risen as well. With a Player Advisory board made up of current and former MLB sluggers, they’ve put themselves in position for a great partnership.

“We don’t see players as advertisements, [but] instead as experts. This provides direct contact and feedback, which translates into greater attention to detail and quality of our product,” Reed added. Many of these players are also financially invested in the Marucci brand. At Marucci they highly value the feedback, specifications, and the expereinces they are able to extract from their players/experts. The power and revolution of the hand crafted wooden bats combined with the sluggers providing an increased level of credibility led Marucci to launch their aluminum bat CAT5 at this year’s All-Star game in Anaheim, California.

The CAT5 aluminum bat features advanced, patented, anti-vibration technology, making it the most innovative bat currently on the market. Marucci has designed brand experiences that travel to youth tournaments around the country. Here consumers can see the technology on video screens, get connected through their Facebook page, touch the wooden bats of MLB Big Leaguers, and swing away in their CAT5 cages. From Marucci’s website, you can even design your own bat.

For now, Marucci Sports will continue to develop and grow their brand with the help of Outside Eyes, their brand strategizing agency, in which Reed Dickens is also the CEO. Marucci’s quality and service stands out as the leader amongst MLB players and as the players swinging Marucci continue to make history, other companies lagging in today’s environment just may be history. In reference to the future of Marucci, Reed added, “ we see Baton Rouge, Louisiana being to baseball what Louisville, Kentucky has been to baseball over the past 40 years.”

Special thanks to Ben Poritt of Outside Eyes, Kurt Ainsworth & Reed Dickens for their time.
You can also follow Marucci Sports on Twitter @MarucciSports

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About Tyler Johnson

Tyler Johnson is an innovative thinker inspired by the likes of Bill Veeck, Jon Spoelstra, Pat Williams & Brooks Boyer. Currently working for Kroenke Sports & Entertainment as a Group Sales Account Executive for the Denver Nuggets. Prior he worked as the New Business Development Executive with the Chicago White Sox. Tyler has also worked directly with the inventor and creator of Arena football and also for Mike Ditka’s former Chicago AFL franchise. As a former collegiate athlete and business sensed individual Tyler ventured to combine his passions to get into the business side of sports.

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Last February on a return flight home from Colorado I picked up the in flight magazine and flipped through it.  On page 54, I was introduced to Seat Geek with one lengthy teasing paragraph.

Earlier this month I was able to catch up with one of the co-founders Russ D’Souza  and speak with him about SeatGeek.com which recently was also featured in TechCrunch, FastCompany, cnet, Venture Beat & the LA Times.

SeatGeek.com launched in September of 2009 and functions a bit like some of the websites developed for the travel industry, but for your favorite sports teams.  Out of the frustration of being a Red Sox fan and always having to pay a premium for tickets, Russ & Jack Groetzinger came up with SeatGeek.com to rid them and other fans of that “I’ve been ripped off feeling.”

Pulling listings from other popular sites like StubHub and Ticketsnow, you can find anything from a Phish show to Cubs game.  Not only does SeatGeek.com show you the listings, they (as their website states) do the math to help you save money.  Using the data from millions of previous ticket transactions and algorithms developed by a team of several economists, they can accurately predict 83% of time whether the tickets you are after will go up or down in price.  If the price is predicted to drop, you can sign up for an e-mail alert and SeatGeek will let you know the best time to buy.

If you are a Season Ticket Holder with your favorite team(s), you can utilize their Ticket Portfolio to determine which of the tickets you possess will yield you a better profit and show you what your tickets are truly worth.  Their Ticket Portfolio is a great tool for those who hold multiple ticket plans and inevitably have extra tickets to sell.

“With SeatGeek.com we want to transform the way fans buy tickets, while helping them find the best deals,” Russ stated in reference to the mission of SeatGeek.  Check out their site and I’m sure you’ll quickly understand what Russ & Jack had in mind!  With new partnerships on the horizon, you haven’t begun to hear the last about SeatGeek.com.

You can also follow SeatGeek.com on Twitter @SeatGeek and on Facebook.

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About Tyler Johnson

Tyler Johnson is an innovative thinker inspired by the likes of Bill Veeck, Jon Spoelstra, Pat Williams & Brooks Boyer. Currently working for Kroenke Sports & Entertainment as a Group Sales Account Executive for the Denver Nuggets. Prior he worked as the New Business Development Executive with the Chicago White Sox. Tyler has also worked directly with the inventor and creator of Arena football and also for Mike Ditka’s former Chicago AFL franchise. As a former collegiate athlete and business sensed individual Tyler ventured to combine his passions to get into the business side of sports.

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Legends Hospitality Management

The name definitely encapsulates the partners’ reputations in their given leagues and by no stretch the status of their owners as well.  By the fall of 2008 the New York Yankees, Dallas Cowboys and Goldman Sachs had formed a food and retail company in Legends Hospitality Management LLC.  George Steinbrenner’s Yankees and Jerry Jones’ Cowboys will each own 34%, with the rest being owned by Goldman Sachs and CIC Partners LP.  Goldman Sachs and CIC will provide financing for the company.

The move was a change for both teams as Centerplate Inc. operated the Yanks Park for 40 years and the Cowboys had operated their concessions at Texas Stadium for the past 20 years.  Their entry into the industry was well timed.  With the Yankees unveiling their $1.3 billion coliseum and the Cowboys unveiling their $1.1 billion dollar playground in 2009, pair with the fact Legends identified a dozen professional sports venues with food service contracts expiring in 2009.  Former Pizza Hut President and managing partner at CIC Mike Rawlings was named the CEO.

Dallas’ new stadium has been hyped like no stadium before and Jones has been quite successful at acquiring numerous and highly lucrative events to his new castle.  The Yankees Randy Levine planned to have a “market-rate” rights agreement with Legends.  That money made under this “market-rate” agreement will be subject to Major League Baseball revenue sharing.  However, Legends’ company profits will not.  Thus, the more the Steinbrenner’s and Jerry can book up their venues the greater the revenues and profits Legends can generate, and the more money the Yankees will have in their Duck Tales like payroll pool.  Perhaps a future article will cover how this venture impacts the Cowboys in relation to its caps and revenue sharing.

Legends mission is to improve stadium dining by serving fresher food, faster, with Celebrity chefs and locally themed menus, as stated by Rawlings.  The deal is not the first of sorts for the Yankees, as in 1999 they merged operations with the NBA’s New Jersey Nets, creating YankeeNets LLC.  Also, in 2001 they signed a partnership with the world’s richest soccer club, Manchester United Plc and began airing taped games in 2003.

Sunburst Entertainment Group

By the fall of 2009 the Tampa Bay Rays launched their subsidiary unit, Sunburst Entertainment Group.  In the short term SEG plans to double the events held at Tropicana Field.  In a consulting role, much like FSG and Giant’s Enterprises, Sunburst Entertainment Group shines to be the go-to source (regionally at first) for sports and entertainment consulting, investment and event management.  SEG believes they are able to formally transfer their intellectual capital to become a leading sports and entertainment consulting company.

Part of this expansion strategy was taking a minority stake in the recently established Florida Tuskers, the  Orlando franchise of the developing United Football League.  Rays President Matt Silverman and executives are eager to draw more concerts, exhibitions, NCAA playoff games, Cirque du Soleil, charity events and eventually Tuskers games at the Trop as well.

Silver Chalice

Though work had already begun, officially Silver Chalice launched in the fall of 2009.  It is a digital-focused division working with clients to create, implement and monetize new media assets online and via mobile platforms.  In leveraging a combination of experience, skill sets, and senior-level relationships across various industries to create competitive advantages for clients seeking to grow their businesses in the intersecting worlds of new media and sports entertainment, Silver Chalice is full of potential.

The COO Jason Coyle, was formerly the President of Intersport’s digital media division.  In October of last year it announced the launch of BullsTV.  It was a logical client relationship with the Bulls and White Sox sharing the same Chairman.  Leveraging those teams’ assets should only enhance Silver Chalice’s possibilities.  Silver Chalice developed and implemented an integrated digital strategy for the Bulls to include interactive platforms and the aforementioned BullsTV, debuting via bulls.com. Also launched was a full package of mobile offerings for the Southeastern Conference’s SEC Digital Network.  With a relationship with XOS Digital in place, their iPhone application climbed as high as the number two paid sports application on iTunes.  Silver Chalice also has an office in Boulder, Colorado and a planned downtown Chicago location is in the works.

Notice anything different about Silver Chalice, than the other ventures?  After learning more about these ventures, most of them had one common dominator that jumped out at me.  Though many of these ventures made a great deal of sense and schematically work very well, the majority of their cash flows still seem related to the same issues of event based marketing and overhead costs.  These ventures strengthen their team’s brands and bottom line, there is little doubt there.  In relation to how effective they are in generating revenue that is not subject to MLB revenue sharing, some may have greater advantages than others.

The thing I like and find fascinating is the reach and scope potential for Silver Chalice.  With their digital platforms and wider distribution probabilities, profits can register quicker than costs.  Being less event based and with digital distribution; location, weather and lines are never an issue.  And while you can’t serve a Legends sampler platter to the fan watching on his couch, you can serve him fantasy updates, video highlights stats and other interactive content.   With other college conferences in the works and a plethora of other avenues to explore, Silver Chalice shall soon be as stated.  Giving the White Sox a new stream of cash in bulk up Kenny Williams’ lineup.

It will be interesting over the next few years to see how these how these companies develop and what other MLB or teams from other leagues will do to begin to find their ways of securing additional revenue streams.  Regionally these organizations that are more events based are spaced well geographically.  Time will tell how competition transpires and the economics of sport continues to evolve.

If anyone has any other resources or information on other MLB, NFL, NBA or NHL ventures, please DM me on Twitter @TylerDJohnson or post a comment!

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About Tyler Johnson

Tyler Johnson is an innovative thinker inspired by the likes of Bill Veeck, Jon Spoelstra, Pat Williams & Brooks Boyer. Currently working for Kroenke Sports & Entertainment as a Group Sales Account Executive for the Denver Nuggets. Prior he worked as the New Business Development Executive with the Chicago White Sox. Tyler has also worked directly with the inventor and creator of Arena football and also for Mike Ditka’s former Chicago AFL franchise. As a former collegiate athlete and business sensed individual Tyler ventured to combine his passions to get into the business side of sports.

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Economical shifts in baseball have been in motion since 1997 when MLB officially granted the commissioner the power to unequally distribute the revenues from the Central Fund.  Previously they were distributed equally.  It was the fall of 2006 when the players association and MLB reached the current five-year agreement in which each team contributes 34% of their local revenues*. These local revenues are consisted of local television & cable rights fees, gate receipts, concessions, parking, suite rentals, postseason revenues, advertising & public relations, and spring training.  Estimated that local revenues are 70% to 80% of teams’ total revenues, economic factors such as attendance, per capita income and other standard statistical census figures are largely responsible for the level of total revenue each team collects.   In 2007, over $300 million was transferred from high to low revenue teams.

AT&T Park: San Francisco

Created in 1999 Giants Enterprises, LLC was established to drive revenue to AT&T Park for non-baseball events and was created in conjunction with the opening of the new park.  Capitalizing on one the best rated ballparks in baseball and that the Giants only occupy the venue around 85 days per year, their mission was to become a key member of the hospitality and entertainment industry of Northern California.  They provide a wide variety of services including event management, catering, meeting planning, marketing and public relations services, graphic design, sponsorship and special event planning in relation to non-game days.

The motive in driving revenue to the park for events on non-game day, and though it is “local” revenue, does not count against the club as it pertains to the MLB revenue sharing agreement.  Another benefit I find that stems from this venture is how it can improve and better enhance the ballparks game day events with greater flexibility and acquired experience.  The additional events, though can incur a reasonable amount of overhead, can ease the tax burdens by better facilitating events at such a venue.

Since opening the park in 2000 Giants Enterprises has created and produced over 1,000 public and private events.  The man in charge, President Pat Gallagher, was also the co-founder of the Emerald Bowl held at AT&T Park.  Also in recent years, the panoramic facility has hosted concerts with the Rolling Stones, Dave Matthews Band, Green Day, Kenny Chesney, Bruce Springsteen, regular performances by Cirque de Soleil, Brian Boitano’s Ice Spectacular, Supercross, AVP Pro-Beach Volleyball and international soccer matches.  In 2004, the Giants created one of the largest public internet hot spots in the world by installing one hundred and twenty-two 802.11b  wireless access points.

Gallagher serves as the Chairman of the San Francisco Convention and Visitor’s Bureau and is on the board for the California Chamber of Commerce.  Prior to becoming the President of Giant’s Enterprises he served as the SVP for business operations for over 20 years.  In 2009 he was also named President of Giants Development Services, LLC.

One of the coolest things I think Pat and AT&T Park brought in was the ski/snowboard IcerAir event.  Having a ski/snowboard ramp extending from the centerfield scoreboard was an amazing set up.  It’s no wonder in the first year of their annual awards; Sports Business Journal named it the “Sports Facility of the Year.”

Fenway Sports Group

According to their LinkedIn Company Profile, Fenway Sports Group develops and executes sales and marketing programs for leading brands and sports properties.  They specialize in Sports Property Sales Representation and Strategic Consultation. Current properties represented by FSG include: Boston Red Sox, Fenway Park, NESN, Roush Fenway Racing, Yates Racing, Boston College Athletics, MLB.com, the PGA TOUR’s Deutsche Bank Championship, and Athletes’ Performance Institute.  You can also follow Fenway Enterprises on Twitter @FenwayEvents.

New England Sports Ventures (the holding company for the Boston Red Sox, New England Sports Network and Fenway Park) led by Larry Lucchino, Tom Werner and John Henry established Fenway Sports Group with the intent of expanding beyond Major League Baseball.  With the clients previously mentioned and one the America’s historical landmarks for a stadium gives FSG a broad hold and knowledge base of their industry.  Sources have estimated that FSG generates over $200 million per year.

One great move recently was when it partnered with the NHL for their annual Winter Classic.  In getting the rink set up three weeks prior to the New Year’s Day game and one week afterward allowed FSG to rent the ice for $10,000 an hour.  They also sold around 30,000 tickets for a celebrity game and sold out two college hockey games.  The NHL likened these events to the Super Bowl’s NFL Experience.  Liking and learning from all the generated publicity, and if held in an NFL stadium there is the potential of not having the ice time available due to the NFL playoffs makes MLB stadiums attractive for this now largely successful annual event.

In December of 2007 FSG purchased the single A Salem Avalanche of the Carolina League.  Next year the Salem franchise was renamed the Salem Red Sox and replaced their Lancaster Jethawks as their High A affiliate.  Also by 2008 FSG had announced the opening of a West Coast office in San Diego, California.  As of June in 2008, FSG operates as a subsidiary of Sinn Fein, L.P.   Most recently in October of 2009 FSG announced a partnership with Fulham F.C. of the English Premiership, with a shirt sponsorship to commence in 2011.

*Correction from previous post where 31% was noted

If anyone has any other resources or information on other MLB, NFL, NBA or NHL ventures, please DM me on Twitter @TylerDJohnson or post a comment.

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About Tyler Johnson

Tyler Johnson is an innovative thinker inspired by the likes of Bill Veeck, Jon Spoelstra, Pat Williams & Brooks Boyer. Currently working for Kroenke Sports & Entertainment as a Group Sales Account Executive for the Denver Nuggets. Prior he worked as the New Business Development Executive with the Chicago White Sox. Tyler has also worked directly with the inventor and creator of Arena football and also for Mike Ditka’s former Chicago AFL franchise. As a former collegiate athlete and business sensed individual Tyler ventured to combine his passions to get into the business side of sports.

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In reading Gail Sideman’s recent article about March Madness being the NCAA‘s best PR campagin, I began to think of the other PR benefits provided by this tournament. I grew accustomed to watching the Iowa Hawkeyes. Guys like Ricky Davis, Acie Earl, Reggie Evans, Russ Millard and BJ Armstrong (who I met again as he represented Derrick Rose and accompanied him to throw out the first pitch at a White Sox game the next day after being selected #1).  Later I began playing football for the Panthers of Northern Iowa, it was guys like Matt Schniederman, Ben Jacobsen (the player) and returning alum coach Greg McDermott that brought the rise of Panther basketball.  Ben Jacobsen brought it again to new heights.

It had been 20 years since the Northern Iowa basketball team had won an NCAA tourney game, on a similar shot to that of Maurice Newby’s until Ali Farokhmanesh beat UNLV this past Thursday evening with this shot.

Before that Northern Iowa was pretty much an unknown school in Cedar Falls, IA mostly recognized for a tradition rich FCS Football history. The University of Northern Iowa is one of only two schools in the history of college football to have both an Offensive and Defensive MVP in the NFL. Bryce Paup and Kurt Warner both are alumnus, as well at Entertainment Tonight Co-host Mark Steins who played wide receiver for the UNI Panthers.  Also this past year Browns wide receiver/defensive back Mike Furrey had been selected as one of three finalists for the 2009 Walter Payton NFL Man of the Year Award,

With force that is now Northern Iowa basketball, and it being the 8th time since 1994 that a Missouri Valley Team has joined the sweet 16, the PR our school in Cedar Falls, Iowa is getting is unparalleled. Here are just a few tweets and a handful from Darren Rovell of CNBC’s sports business.

@ESPN  UNI knocks out Kansas, advances to Sweet 16 – http://tinyurl.com/yhbfe3e

@Peter_R_Casey  That’s the sound of my bracket going through the shredder. UNI made it enjoyable.

@darrenrovell1 Kansas’ Bill Self ($3M) makes MORE THAN 10 TIMES the salary of UNI’s Ben Jacobson ($289,900).

@darrenrovell1 Best part of UNI Ben Jacobson’s contract? UNI had salary freeze so boosters agreed to pony up $130K/year.

@darrenrovell1 “Ali Farokhmanesh” has 75,800 google hits. Should surpass “Bryce Drew” at 103,000 by tomorrow night

@darrenrovell1 Adidas pays Kansas $3.33M/year. Wonder how much Nike pays Northern Iowa?

@darrenrovell1  In ’09, Northern Iowa spent $19,099 per player. Kansas? $97,449 per player.

Then there’s the real muscle of doing well in the NCAA tourney. The university logo will be on TV more during that week than it could ever imagine affording in its wildest basketball dreams.  The basketball budget alone for Kansas most likely exceeds Northern Iowa’s total athletic budget. The exposure that comes with upsetting a #1 ranked team is dandy, doing it in the NCAA tourney makes it a diaper of a dandy. The exposure that UNI gains over a week’s time will be enjoyed by fans and soaked in by the athletic department.

One reason I believe fans enjoy the basketball tournament over the BCS laden football championship is the stories like these it unveils and thrives on. Despite loosing to Michigan State, sweet 16 exposure still boosts a program on the rise and draws attention to a great University in the heart of Iowa. Thank you NCAA tourney.

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About Tyler Johnson

Tyler Johnson is an innovative thinker inspired by the likes of Bill Veeck, Jon Spoelstra, Pat Williams & Brooks Boyer. Currently working for Kroenke Sports & Entertainment as a Group Sales Account Executive for the Denver Nuggets. Prior he worked as the New Business Development Executive with the Chicago White Sox. Tyler has also worked directly with the inventor and creator of Arena football and also for Mike Ditka’s former Chicago AFL franchise. As a former collegiate athlete and business sensed individual Tyler ventured to combine his passions to get into the business side of sports.

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Some call it a sign of the times or the new “Revenue Era” in baseball.  All major sports teams are in search of revenue streams or new ways to maximize current ones.  Without a salary cap, Major League Baseball teams have been thriving with activity.

One piece to the new revenue is puzzle has been the obvious recent economic woes.  Some markets have been harder hit due to more significant local job loss and some due to their increased dependence on corporate revenue streams that soon became rougher waters.

No matter the team or the market everyone is in need of additional revenue.  In the last few years another large piece in new era revenue puzzle is current Collective Bargaining Agreement.

A brief explanation:  Each year all 30 teams pay 31% of their local revenues into a pool every year.  The sum of this pool is then distributed evenly among the teams. Thus teams from Chicago, LA & New York will add larger contributions than say Kansas City, DC or Tampa Bay.  There is also a Central Fund, which is derived from league wide television contracts.  Teams generating the lowest revenues receive the lion’s share of those cash flows.  Thirdly, the always “New Yorkly” discussed Luxury Tax, which is contributed upon by exceeding the pre-set salary regulation.  This money is absorbed by  the teams with lower payrolls across the league.

The question then soon became how can teams increase their cash flows without that new found money being subjective to revenue sharing?   Teams became to come up with their business solutions.

Back to 2004 when New England Sports Ventures established the Fenway Sports Group (which since June of 2008 has operated as a subsidiary of Sinn Fein, L.P.), to the San Francisco Giants Enterprises which began back in 2000. More recently in 2008, the Dallas Cowboys and New York Yankees teamed up with Goldman Sachs to launch Legends Hospitality Management LLC.  The Chicago White Sox launching Silver Chalice Ventures.  The Rays in Tampa have  the Sunburst Entertainment Group LLC.

In Part 2: I’ll take an in depth look at these entrepreneurial shifts in Major League Baseball and see how they stack up in the near future, or at least relevant to this new “revenue era”.

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About Tyler Johnson

Tyler Johnson is an innovative thinker inspired by the likes of Bill Veeck, Jon Spoelstra, Pat Williams & Brooks Boyer. Currently working for Kroenke Sports & Entertainment as a Group Sales Account Executive for the Denver Nuggets. Prior he worked as the New Business Development Executive with the Chicago White Sox. Tyler has also worked directly with the inventor and creator of Arena football and also for Mike Ditka’s former Chicago AFL franchise. As a former collegiate athlete and business sensed individual Tyler ventured to combine his passions to get into the business side of sports.

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It may sound cliché, but I think everyone in the New Year should set out to try a few new things.  Hopefully people haven’t already derailed their 2010 plans! One of my former colleagues sent me a tweet last week wanting to promote #ClicheWednesday on twitter that day.  It was random, but knowing his use of social media in his job, it was new to me and I thought, hey good for Brian (@GrouponBrianSA).

New Year resolutions are about as common as New Year ’s Day hangovers and football.  However, the essence of the motive is a great idea.  Typically it is the execution and follow through that turns these resolutions into clichés.

In preparing for a future in sports business I read a good deal of Jon Spoelstra works.  If you aren’t familiar, I definitely recommend “Ice to Eskimos and Marketing Outrageously” (forward by @mcuban).

After the 2008 Baseball season I was checking up on Jon’s happenings and came across another book of his.  At the time, our department was re-structuring and I was moving into a new role as New Business Development Executive. I found the book to set a good theme.  It was titled “Success Is Just One Wish Away : Make One Wish and Your Life Suddenly Changes. but Make Sure It’s the Right One”.

Spoelstra helps set a plan of action to accomplishing your goals.  He draws the focus to the short term in a way that makes achievement increasingly possible.  Recently on a call with Bill Guertin, the @800poundgorilla, he shared some great advice that paralleled Jon’s plan of action.   Bill told me that “whatever you do each and every day (good or bad) will lead you to the path you are on…”

In 2010 don’t have your goals or resolutions become a cliché.  Make a plan of execution, and do the little things each and every day needed to reach your objectives.  I still have my three goals I jotted down in the fall of 2008.  Those goals have now become daily or weekly habits in my routine.  As you move thorough 2010, find ways to improve your skill sets, daily activities and seek out success.  You’ll find if you work hard, the tasks you need to accomplish your goals will blend into your natural routine.  Once this happens, add new short term goals and you will find like Jon says, your Success can be just one wish away.

About Tyler Johnson

Tyler Johnson is an innovative thinker inspired by the likes of Bill Veeck, Jon Spoelstra, Pat Williams & Brooks Boyer. Currently working for Kroenke Sports & Entertainment as a Group Sales Account Executive for the Denver Nuggets. Prior he worked as the New Business Development Executive with the Chicago White Sox. Tyler has also worked directly with the inventor and creator of Arena football and also for Mike Ditka’s former Chicago AFL franchise. As a former collegiate athlete and business sensed individual Tyler ventured to combine his passions to get into the business side of sports.

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Last May I was kicking back with Lewis Howes at a Chicago Cubs game, not knowing in two weeks time I would be doing the same thing with another colleague, Jude LaRose.  Still digesting the LinkedIn knowledge Lewis dropped on me, Jude and I ended up not paying much attention to the play on the field and instead spent most of the time hatching a plan.

In working with LinkedIn, I have started to see the value in being a part of different groups and organizations that can benefit my career.  With a desire to become more actively involved, we decided to start a group in Chicago for sports professionals working in the area.

The following day we launched the Chicago Sports Business Professionals group on LinkedIn, inviting all local connections we had within the industry.  The group quickly began to grow, and we decided to supplement the online networking with live events.  The next step involved asking one of our good friends and colleagues (and networking guru), Lindsey Nealis, to help us with our new venture.

Since Lindsey’s arrival we have hosted three controlled events, each with around 40-60 guests.   With each event, the group has grown and word has spread further.  After six months and three events, the LinkedIn group has more than 300 members. The members all work in the Chicagoland sports industry – representing front office employees from every Chicagoland professional and minor league sports team, Northwestern University, various sports law firms, sponsorship agencies, and local media.

The connections and relationships formed have been great.   As Mr. Howes mentioned in his book, “It isn’t who you know, but who knows you.”  I would reason one could take it a step further and add, “How do they know you?”  I have found many great resources within our group and believe the others involved share in the sentiment.

“We are excited to provide a group for sports industry professionals to share ideas and best practices, trade resources, and form lasting relationships,” said Lindsey.

A former Chicago colleague Mark Washo, who now resides in Washington D.C. has recently kick started a similar spin-off group in D.C.  Follow Mark on Twitter @Breakintosports.  If you are in the area, reach out to him!

Lindsey, Jude and I look forward to an exciting 2010 as we continue to meet new people and build relationships with those in the town we call home – Chicago.

* Jude LaRose is currently a Senior Account Executive with the AHL’s Chicago Wolves.  Prior to working with the Wolves,  Jude was with the Chicago Rush of the AFL where he holds the record for most new season tickets sold in the franchise’s history, was a  three-time Discover Card Arena Football League Salesperson of the Month, and recognized as the number two account executive in the AFL in sales for the 2007-2008 season. You can follow Jude on Twitter @judelarose or Link Up on LinkedIN

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* Lindsey Nealis has been with the Chicago White Sox for 4 years, and is currently the Coordinator of Client Services and Group & Party Area Sales.  Prior to working with the Sox, Lindsey attended Indiana University Alum where she played Division I Field Hockey.  You can follow Lindsey on Twitter @lindseynealis or Link up on LinkedIN

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About Tyler Johnson

Tyler Johnson is an innovative thinker inspired by the likes of Bill Veeck, Jon Spoelstra, Pat Williams & Brooks Boyer. Currently working for Kroenke Sports & Entertainment as a Group Sales Account Executive for the Denver Nuggets. Prior he worked as the New Business Development Executive with the Chicago White Sox. Tyler has also worked directly with the inventor and creator of Arena football and also for Mike Ditka’s former Chicago AFL franchise. As a former collegiate athlete and business sensed individual Tyler ventured to combine his passions to get into the business side of sports.

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