Fortune 100 companies: insight into premium seating

ownership.
Fortune 100 Companies: Insight into Premium Seating Ownership
One of the main drivers of the sports-facility building boom that occurred between 1990 and 2010
was the ability of venues and sports organizations to significantly increase the number of luxury
suites and premium seats available in their ticket inventories. As new venues have been built,
approximately 25% of the new seats are in premium ticket categories (Luxe Living, 2008), resulting
in a 147% increase in luxury suite inventories among all four U.S. professional sports
leagues (Rhoda, Wrigley, & Habermas, 2010). For example, when it opened in 2010, MetLife
Stadium offered 218 luxury suites with prices ranging from $150,000 to $1 million (LaPointe, 2009;
McManus, 2010). It is estimated that some professional sports organizations generate 50% of all
ticket revenues from luxury suites and premium seating (Luxe Living, 2008). While it is evident that
the premium-seat market has become a lucrative revenue source, little has been written about the
motivation behind the purchase.
The increased availability of premium seating offers attractive revenue opportunities for venues and
teams, but there are several environmental and buyer behavioral issues that make the selling of
these premium seats extremely challenging. The high price for luxury suites ensures that the
majority of premium ticketing customers are corporations (Lawrence, Contorno, Kutz, Hendrickson,
& Dorsey, 2007). However, the recent economic downturn forced many firms to lay off employees
and seek other ways to cut costs.
While the use of sporting events to entertain clients and prospectshas been a staple of modern
business, it was estimated recently thatcorporations have reduced their spending on hospitality by
25%(Schoettle, 2009), and many corporations are averse to entering intolong-term luxury suite deals
(Trends and Challenges, 2010). In a surveyexamining overall marketing budgets of companies that
traditionallyinvest in sport-related marketing and advertising, 25% of respondentsindicated they
would be spending less in 2010 as compared to 2009(Seaver Marketing Group, 2010). With fewer
corporate dollars and morepremium inventory, the competition for remaining hospitality budgets
isrobust, and convincing firms to retain premium ticketing packages at atime when employees are
being laid off can be difficult. When combinedwith growing shareholder and public concern over the
appearance oflavish corporate spending on sports-related sponsorships and facilitynaming rights
(Belson, 2009), the premium seating sales environment hasnever been more demanding.
The selling and renewal process related to premium seating also is challenging because it
represents an atypical buying process for firms. The buying process involves a unique set of the
firm's employees, the benefits sought from the purchase are often unknown or poorly defined, and
the firm often relies upon employees of the venue or team to deliver a positive and meaningful
game-day experience even when a victory by the home team is not guaranteed (Lawrence &
Moberg, 2009). Because the benefits of premium seating ownership are typically intangible and
qualitative (e.g., improved customer relationships, increased brand strength), it also is difficult for
both the buyer and seller to develop a compelling case for positive Return on Investment (ROI) or
Return on Objectives (ROO) to support the investment.
When faced with these environmental conditions, it is critical that venues and franchises implement
strong sales and customer service processes to attract and retain premium seating customers. The
first step in improving current selling and customer relationship practices is to develop a better

understanding of the needs and wants of corporate prospects and customers. Unfortunately,
existing sports marketing literature does not offer much support in this area. Recent research
has developed a demographic profile of typical luxury suite and premium seating customers
(Lawrence, Kahler, & Contorno, 2009; Lawrence, Contorno, & Steffek, in press). Additionally, buyer
motives and the uses of premium tickets have been explored (Titlebaum & Lawrence, 2010), but
buyer preferences were developed based on the perceptions of luxury suite administrators and
venue employees instead of the corporate buyer. Research that asks premium-ticket buyers about
the motives for their purchase and the keys to a positive experience leading to renewals is
necessary. This information will provide sales teams with information that will help them navigate a
challenging environment, successfully sell premium inventory, and renew their premium clients.
This study focused specifically on Fortune 100 corporations in theUnited States that invest in
premium seating in professional sports asone aspect of their overall marketing strategy. To better
understand theinitial decision to purchase premium tickets and the keys to effectivelyrenew
corporate customers, buyers were asked several questions about thebuying process, the use of
tickets on game days, and the key criteriaand analysis used to evaluate premium seating
investments when making arenewal decision. This paper begins with a review of the
emergingresearch stream on premium ticketing in the sports marketing literatureand a description
of the method used to collect data from corporatebuyers. It continues with the themes that emerged
from the analysis ofthe results and ends with a discussion of the research implications forboth the
buyer and seller of premium inventory.
The Premium Seating Industry
The total size of the U.S. premium seating industry is difficult to pinpoint, ranging from a 2002
estimate of $600 million (Lee & Chun) to a 2011 estimate of $10 billion (Cohen, 2010). Recently,
researchers have focused on the value of premium seating for specific teams. Badenhausen (2008)
reported that 20% of NFL and 35% of NHL team revenues come from sponsorship and premium
seating while Forbes found that the typical NBA team generates $20 million from luxury suites and
club seating (Badenhausen, Ozanian, & Settimi, 2008). Additionally, up to 50% of all ticket revenue
(Luxe Living, 2008) and up to 25% of the total locally generated income (Connelly, 2011; Scibetti,
2011) for a franchise can come from premium seating. These percentages are expected to increase
as more facilities with larger premium seating inventories are opened. Table 1 demonstrates the
size of the luxury suite market broken down by the four major sports played in North America
in 2011-2012.
In professional sports, luxury suites generally are purchased by corporations because the high cost
is prohibitive for individual consumers. Research found 61% of teams and venues have over 90% of
their luxury suites owned by corporations, while another 23% of teams have between 75% and 90%
corporate ownership (Lawrence et al., 2007). Mason and Howard (2008) reported that the average
annual price of a luxury suite ranged from $59,000 to $231,000. For example, MetLife Stadium
has suites ranging from $150,000 to $1 million (LaPointe, 2009; McManus, 2010) and the Amway
Center has suites that range from $135,000 to $295,000 (Shanklin, 2010).
Pricing of premium products is another under-researched area in the sport industry but one that is
critical to the development of the literature. Shapiro, DeSchriver, and Rascher (2012) provided the
first examination of pricing determinants for luxury suites. They found that approximately 60% of
the pricing variability was explained through the examination of select variables (e.g., market
population, market per capita income, number of games in the venue, league, team
performance, and number of competing facilities) (Shapiro et al., 2012). These findings relate to the
current study in that teams and venues will need to analyze the motivations for purchases by

corporations and characteristics of corporate buyers against their pricing strategy to generate
price-points that maximize revenue yet do not out-price their key corporate accounts.
Titlebaum and Lawrence (2009, 2010) first interviewed and then surveyed premium seating sales
executives to discover the perceived motivations of suite buyers in the four major professional
sport leagues. The authors found that the most important motives for purchasing and retaining
luxury suites was to entertain new and existing clients, to create a feeling of exclusivity among their
guests, and to be associated with the brand of the team (Titlebaum & Lawrence, 2009, 2010).
Titlebaum and Lawrence (2010) also discovered that the common thread among all these motives
was related to relationship development and management. Premium seating was seen as an
effective tool to develop stronger relationships between the suite owner and important clients and
prospects, as well as a key to developing relationships between the firm and the team's players,
owners, and employees. The buyer's perceived importance of a stronger connection to the team is
an important discovery, because venues and teams can use this information to provide opportunities
for further development of this relationship (e.g., travel with the team, behind-the-scenes access at
a game). These efforts can increase the likelihood of customer retention and sponsorship activation
(Titlebaum & Lawrence, 2009, 2010).
In similar research, a prominent study by Lachowetz, McDonald, Sutton, and Henrick (2003)
focused on factors leading to high corporate-sponsorship retention. Premium seating was part of
the inventory considered in the corporate sponsorships under investigation. The authors found that
added value, relationship building, and customer education emerged as the three most important
themes needed to retain corporate clients in the NBA.
Lawrence and Moberg (2009) recommended that teams and venues use sales teams when selling
premium ticketing. Previous selling research had identified several factors considered conducive to
the use of sales teams, including an atypical buying process, the involvement of several people in
the purchase decision, post-sale service provided over a long period of time, and the existence of
intangible benefits that are hard to quantify (Jones, Dixon, Chonko, & Cannon, 2005). Because it
can be argued that these conditions are met in a typical premium ticketing buying process,
Lawrence and Moberg (2009) recommended using different cross-functional teams during the sales
and service delivery processes to ensure strong relationships and renewals.
Titlebaum and Lawrence (2011) provided evidence that the premium seating industry is in the midst
of a reinvention (e.g., economy, motivations for purchase, lack of accurate measurement related
to ROI/ROO, changing role of sponsorship activation, and the role of suite administrators) that will
require teams and venues to be more active in prospecting, selling, and serving clients. When these
market changes are coupled with the ongoing economic recession, professional sports
sales professionals must have a deeper understanding of their client needs to ensure future sales
and renewals of their suite inventory.
Methodology
With little existing research on premium ticketing buying processes, this project was conceived as
an exploratory study to collect qualitative information from existing premium seating customers
on several issues related to the purchase and use of premium tickets. Qualitative research is
appropriate when identifying critical variables and trying to establish possible relationships among
the variables in the early stages of theory development (Strauss & Corbin, 1998). The origin of the
work is based on the earlier findings of Titlebaum and Lawrence (2009, 2010, 2011). In previous
studies, the researchers sought the perspective of those who sold or serviced the suites. This study
is different in that it was based on the purchaser of the premium seating product. Participants were

recruited based on their willingness to be part of the process and engage in open dialog, to share
how and why they utilize premium seating. As described by Li, Pitts, and Quarterman (2008), "the
use of interviews is best when in-depth discussion and information are needed" (p. 70). The results
provide a deeper understanding of the industry, the first look into premium seating ownership from
the corporate client's perspective, the ability to compare actual buyer motivations to the results of
previous research focused on the perception of team executives (e.g., Titlebaum and Lawrence,
2010), and a strong foundation from which future research can be launched.
Interview questions initially were developed by the authors and submitted for review to a panel of
experts with extensive experience in the premium seating sales industry. The experts confirmed
that the interview questions covered the major components of the premium seating sales and
renewal process and that no leading questions were asked at the beginning of each new interview
section. The final set of interview questions can be found in Table 2, and a brief description of
each panelist's experience can be found in Table 3.
Semi-structured phone interviews were conducted over a two-month period in 2011. The
participants were chosen by convenience based on their participation in a Suite Holders' Focus
Group conducted at the Association of Luxury Suite Directors Conference in 2010 and
2011. Individual interviews were conducted with 15 high-level decision-makers from these Fortune
100 firms in the United States and represented a diverse geographical area. The sample was
comprised of companies from the following industries: financial services,
insurance, telecommunications, grocery retailing, information technology, energy, food and
beverage, media, and entertainment (see Table 3 for a brief description of each interview subject).
Those interviewed were screened to ensure each was directly involved in the decision-making
process for the purchase and use of premium tickets and that each firm was currently involved in
relationships with teams and venues. The firms in the respondent pool have been premium-ticket
customers from eight to 50 years, and all but two have luxury suites and premium tickets
at multiple venues. The interviews ranged from 20 to 30 minutes in length and were transcribed for
analysis. The research interview has long been an important method of data generation used by
researchers to elicit descriptions from participants concerning their experiences, perspectives,
beliefs, and opinions (Roulston, 2011).
Results
Each author reviewed the interview transcripts independently to identify the main themes that
emerged. Once this independent analysis was completed, the authors worked together to develop a
summary of the qualitative findings for each research question. Consensus was reached among the
authors about the main themes that emerged from each section of the interviews.
Characteristics of the Buying Process
When asked about the length of the decision process and people involved, the Fortune 100
respondents all stated that it depended on the type of purchase and whether the ticketing purchase
was included in a sponsorship or marketing deal. For purchases or renewals at one venue only, the
majority of Fortune 100 respondents reported that the process typically lasted from one to six
months and included employees from sales seeking to entertain clients or prospects. The process
was viewed as relatively straightforward, particularly if the local sales office or team was using its
own budget to make the purchase. Respondent F stated, "For an existing suite contract that we
decided we see value in already, it is fairly simple. Send us the dollars and how much it is to go
forward." Respondent M noted that, "the process is very simple. You either know what you want or
you don't. They are always going to try and push you to buy more--that is just sales. They come

to you with a renewal contract and ask you to sign it and you are done for the next season."
Respondents A, E, J, and K all noted they will review the usage of premium seating quickly to ensure
a reasonable usage percentage and that customers are the primary users of the seating before
making a decision on renewal.
However, a majority of the interviewees stated that the decision-making process for premium
seating often was included as part of a larger sponsorship or marketing deal for the firm. They
indicated that the buying process for sponsorship and marketing deals often was much more
complicated, took longer to complete (ranging from three to nine months), and involved more
people and business units than straightforward luxury suite or premium ticket purchases. In
fact, premium tickets often were viewed as a secondary issue during the negotiation of sponsorship
deals between firms and teams. Respondent L noted that, "sponsorships take months. The suite is a
benefit of the total deal. We have a very complicated organization. We have three business groups
and things have to be funded and leveraged by those groups. I would say if it is a relatively simple
deal, it would take six months. A complicated deal would take nine months." Respondent
M concurred that, "premium seats are looped into a much bigger sponsorship deal. You may have a
negotiation where you are trying to improve your suite location or add more seats. If you are talking
about tickets being part of the deal, it can be complex and long but tickets won't normally be your
priority issue to resolve." Still Respondent K noted, "marketing sponsorships are a long, drawnout process sometimes due to the fact that the team wants to receive more monies for what we're
looking to do for air time or for print ads. Within those sponsorships, we do get some type of
hospitality or ticketing."
Premium Seating Purchase Motivations
Recent research that used interviews and surveys with luxury suite directors for teams and venues,
but not the buyers, had identified prospect and client entertainment and the building of
stronger relationships with customers as the main reasons firms purchased premium seating
(Titlebaum & Lawrence, 2009, 2010). This finding was confirmed by the interviews in this study
with decision-makers at Fortune 100 firms. Respondent F stated, "Customer hospitality 100%. We
want to improve the relationships that we have with our customers. We feel that premium seating
adds to that value." Respondent J similarly stated, "Our main goal in purchasing the tickets is
for client entertainment and to broaden and deepen our business relationships with new companies
and current companies." Respondent G succinctly stated that the primary motive was "to host
potential and existing customers with the goal of improving relationships to drive more sales."
While the majority of interviewees mentioned customer entertainment and relationship development
as the primary reasons for purchasing premium seating, respondents A, B, D, G, and I mentioned
that another driver was the opportunity to use the signage and other promotional efforts that often
come with premium seating ownership to develop the corporate brand and build awareness. In fact,
some buyers stated that premium seating was a component of their sponsorship deal but was
not the primary reason for entering into a relationship with the team or venue. Respondent G noted
that "the primary reason we invest in sporting sponsorships is where we believe we can activate
the sponsorship from a marketing prospect and get in contact with our shoppers with a different
point of engagement. When we engage in activation, we are exposing our brand at a different state
of mind." Respondent I concurred: "Our agreement with the team is as a primary sponsorship. It is
really more about in-stadium signage and other things we do for a sponsorship. The seats are part
of the sponsorship package." Respondent D stated that, "we get tickets through our sponsorship
opportunities or through media sponsorship and use those tickets to entertain clients. There is not
a tremendous amount of spending that we have directly towards tickets." Respondent B did
mention that the purchase of premium seating and the sponsorship opportunities included helped

build their brand with two groups. Tickets were purchased "to drive business to strengthen the
brand or to strengthen the brand within the community."
The Game-Day Experience
Most of the buyers indicated that the planning team for upcoming events is typically different from
the team that negotiated and signed a premium ticketing or sponsorship deal. While members of the
purchasing department or senior leadership team often are involved in the initial purchase or
renewal decision, they typically are not involved in the allocation of tickets or the planning and
execution of a game-day event. According to respondent E, the hosts or users of the tickets
are typically from "sales or are account executives that utilize it for customers. They are not the
ones in the negotiation. I turn them over to the sales group and let them use them the best way they
see fit. We put a lot of trust in our account executives to use the tickets properly." Respondent N
concurred by stating that "usually it is the sales team who are hosting the clients in the end."
In addition to the salespeople or account executives who participate in the game-day planning and
allocation as hosts, most teams indicated that the firm's marketing department or a thirdparty agency is heavily involved in the use of premium seats through the activation of the account.
Respondent B stated that, "I would say that the only people that are still involved are the
sponsorship people. Once the purchase is done, that inventory goes into sponsorship or marketing."
Respondent D stated, "I work with agency partners, and they work with venues. I have a marketing
agency that works with vendors. They negotiate contracts and assets. I do not have direct contact
with a stadium until I get there." The use of agencies to help with activation appears to be related to
the size of the firm. One smaller firm stated that, "we have a small sales team here and we use
agencies to help activate the program. We have one or two people on our team that would do that,
but we have a few people at the agency to help with that."
One compelling finding from the interviews was the importance of activation in delivering a highquality and unique experience. One unexpected finding by Titlebaum and Lawrence (2010) was the
perception by luxury-suite directors that a primary buying motive of premium seating owners was
the ability to build relationships with the team and to feel closer to the athletes and coaches. While
this issue was not mentioned in this study as a primary motive for purchasing premium seating, it
was regularly mentioned by respondents as a critical component of delivering a meaningful
experience to customers and prospects and that effective activation played a key role in the
renewal of premium seating. In fact, the strongest consensus among the buyers was the importance
of activation if the firm wanted to generate more value from an investment in premium seating and
sponsorship deals. Although activation can take many forms--such as items at concessions stands or
higher levels of signage and promotion--the ability to create unique experiences or develop
relationships with the team were mentioned by several buyers.
Respondent A summarized the opinions of many others by stating, "activation is everything. You get
marketing value from the branding but you don't need a suite for that. If you are serious about
business and you do not activate, it is a very expensive form of advertising and the effect is not any
greater. I really thought a company got bang for their buck when they used the suite on game
days, but also for events they created where they brought a customer's clients and prospects in and
had presentations in the suite and had the opportunity to meet one of the team's players. This had
more of an impact than bringing them to a conference room." Respondent N stated that "having
good seats is one thing. Being able to walk into the locker room 30 minutes before the game to
shake hands with one of the assistant coaches and watch practice from those seats before
the game--you need those experiences. Insider access becomes the focus of our activation."

Determining the Value of a Premium Seating Investment

When firms were asked how they evaluated the quality of the game-day experience, only a few
indicated that they performed a formal review of the event or collected data. Respondent D reported
using "internal score cards to identify factors that are important to us. We have 40 events through
the year. Each one has an evaluation rolled up into a master scorecard for each sponsorship deal.
We look at brand exposure and relationships." Other data collection techniques appeared less
formal, as a few firms indicated they would send surveys with only a few questions to customers to
assess their enjoyment of an event. Respondent G noted that "they send out a post-event
survey. We tally the results every week." Respondent M stated that "we post a survey for folks who
used the tickets and ask an assortment of questions about their overall experience related to
specific elements such as parking, food, and gift bags." Respondents A, B, and D indicated that all
they did was track attendance at events to ensure that customers were using the tickets and that
the key decision-makers, and not their surrogates, attended events. Respondent A noted, "I think
you always look at attendance. Did the people you wanted to reach actually attend? If they didn't
attend, that is a problem. If the target people are sending substitutes, you have to evaluate why
they sent someone else." These responses are consistent with a January 2012 article in the
SportsBusiness Journal in which Erik Spanberg noted, "No matter who manages it, hospitality works
best when it's meaningful and makes a connection beyond receiving a free ticket" (para. 15).
While respondent D reported the use of a formal scoring system and respondents G, H, L, M, and O
used basic customer satisfaction surveys or attendance tracking for events, many firms did not
collect data or use formal processes to evaluate the quality or value of specific events. In fact, it
appears that many firms either see the events as a perk or reward for certain customers or just
accept that the tickets are part of a relationship-management process that is challenging
to measure. Data typically is not collected because the investment is small and the guest is not at a
high level, or because the firm wants to reward its highest-volume customers and develop
relationships with senior executives. Respondent C's comment captured the sentiment of others.
"We have tiered entertainment opportunities. Tier 3 means just giving the premium ticket to a
customer and host. In Tier 3, there is very little that I look at for success. It is more of a reward
thing. At Tier 2, dinner is provided for them, hotel options in case alcohol is served, and we have a
suite ticket that is available. The companies they represent must meet certain revenue levels for us
that make us want to entertain their upper level management. Tier 1 is our top level where
we entertain the 'C level.' This is the chief executive, financial, operations, technology, information,
or marketing officer. We do a flight, hotel suite, luxury suite ticket, and meet-and-greet. Just to
have the opportunity for them to accept our invite is a big win for us."
When asked specifically if their firm used ROI analysis for their premium ticketing purchases, most
firms indicated they did not. Respondent C reported that, "the answer is no. We look at the number
of customers that have been entertained and the frequency of those customers and review what
they bring in. The ROI is very difficult to put into a matrix. It is more ROO. We use it to retain,
reward, repair, and renew our relationships with customers." Another concurred, stating that "we
do not necessarily measure against ROI. We know what is important when closing deals and we
know that merchandising is the key factor here. We do more ROO."
Even for those firms that indicated the use of ROI, the analysis seemed to be more informal and
included the use of qualitative data. Executives stated that it was difficult to pinpoint the
specific percentage of credit that should be attributed to premium seating investments when deals
were closed and that they placed a certain level of trust on those sales executives and account
managers who expressed the importance of premium seating to developing and
maintaining relationships. Respondent G noted that "our top people know the value of it. I will get

an e-mail that will mention something about it assessing the return in terms of what deal they
struck because they brought a client to an event." Respondent K stated that ROI for giving a
specific client premium tickets is "hard to quantify but that we are hoping it does. We are showing
our appreciation by giving them a premium seat and hope that they continue to bring their
business to us, or give us referrals." Still respondent H stated that, "we track who goes in and we
have an internal system that allows us to track improvements in sales over a set period of time. The
problem is that the sales cycle is sometimes 12 months, so there is no way for us to say we were
instrumental in anything. It is a single data point in strengthening relationships but we do not do a
direct correlation between sitting in our suite and our business improving 10%. It is more ROO."
Implications
The results of this investigation into how Fortune 100 companies utilize premium seating as an
effective business practice/sales strategy will help professional sports sales executives overcome
common business-environment challenges and gain a better understanding of their clients.
According to the premium seating decision-makers interviewed, premium seating sales executives
need to focus on a broad array of variables related to customer needs and wants. Understanding
which variables deserve attention based on client needs and wants will ensure a successful
relationship between the client and team as well as enhance customer retention. The results of this
qualitative research provide some guidance for selling premium tickets and developing longterm relationships with customers.
Hosting Clients
Previous research (Titlebaum & Lawrence, 2010) indicates that a corporation's primary motivators
for purchasing suites include the opportunity to host current clients in the suite, the ability to
solicit and entertain new customers/potential clients in the suite, and the status of having an
association with the event and/or team with a presence in the venue/arena. This is no surprise,
considering that corporate hospitality is noted as a key component of creating new relationships
and fostering existing relationships (Titlebaum & Lawrence, 2010). The Fortune 100 executives
confirmed prior research in this area by emphasizing that hosting clients and prospective
clients was much more important to them than any other usage of luxury suites. Although corporate
meetings and employee rewards also were noted, it was clear that business development was a
more critical use of their premium seating inventory.
It might be possible that using tickets as employee rewards is also declining because the economic
climate is forcing companies to be more strategic in their ticket usage. Plus, in many companies,
these employee incentive programs are prohibited. Additionally, IRS regulations and internal audit
results and recommendations also can affect a corporation's ability to and interest in using tickets
as incentives. Respondents G, H, K, and M specifically mentioned that having to report gifts over
$100 resulted in employees not wanting the difference taken from their paychecks if they receive a
premium ticket. These barriers to other uses of tickets may actually help ensure that the suite is for
business purposes because the appropriate attendees (e.g., prospects, current clients, top decisionmakers) are being invited instead of employees.
The more clients and prospective clients who utilize the tickets, the greater ROI and ROO potential
exists if the company invests in premium purchases in an effort to generate revenue. Erik Spanberg
(2012) explains how "prime seats often count as major bargaining points when a company
negotiates a sports sponsorship. With investments typically starting at $100,000 just for a suite, not
to mention the much higher cost if VIP tickets come as part of the all-encompassing
sponsor package, companies, and teams can't afford to come up short" (para. 2). Such a large

investment makes utilization even more important to a company. The downside is that after the
recent economic depression, many organizations experienced budget cuts across the board.
Client hospitality was one of the main areas affected. Additionally, corporate downsizing has made
it inappropriate, and often against company policy, to spend excessive amounts of money on
hospitality and gifts.
Enhancements
Premium seating sales executives should focus on exceeding their client expectations by delivering
enhancements that extend beyond the language in the contract. Teams and venues need to provide
premium clients with much more than just a physical space to conduct business deals during games
(Titlebaum & Lawrence, 2010). During the interviews, participants emphasized the importance of
enhancements that range from once-in-a-lifetime experiences such as interaction with high-profile
athletes, to something as simple as corporate gifts provided during the game.
Account managers need to have an understanding of the type of enhancement that has value to
each corporation, as they may differ depending on the reasons the company made the purchase in
the first place. For example, enhancements related to special access to players and team
executives, exclusive premium ticket holder events that foster relationships, and special tailgates
and golf outings help to build a more personal relationship for the client, the account executive,
and the sports organization (Titlebaum & Lawrence, 2010). Providing a gift to each game attendee
in premium areas that is cobranded with the company and team solidifies the partnership and gives
attendees a souvenir from the experience to associate the company with the team. Hopefully, this
results in a positive brand association for the company client or prospective client. Although it may
seem like these enhancements go unnoticed by premium ticket holders, the majority of study
participants confirmed that during the renewal process, they are very important in decision
making.
Because attending luxury VIP hospitality events is frowned upon while companies are downsizing
and laying off employees, these circumstances lead many premium seating purchasers to create an
overall experience in order to entice their clients to attend. It is now much harder to get highprofile executives to attend sporting events unless there is a business purpose associated with the
outing (a meeting in the suite on game day), an exceptional experience (all-inclusive
experience featuring transportation, premium food and beverage, and an overnight stay at a
premier property), or if the event/game/match-up is a highly demanded ticket.
Inventory Management
As Fortune 100 companies continue to look for ways and methods to assign ROO and ROI values to
their sports and entertainment ticket investments, inventory management has been a major focus.
According to an executive with Ovations Management Solutions, creator of the first ticketmanagement software, "as much as 40% of corporate seats go unused" (Spanberg, 2012, para. 4).
The need for more effective inventory management has led to the introduction of several
other ticket-management programs, which allow organizations to determine how the majority of
their ticket investments are being used: for customer entertainment, internal/personal use, or
unused inventory. The most heavily used program among the Fortune 100 respondents was
Spotlight Ticket Management. Spotlight Ticket Management offers its users access to company
ticket inventory from any Web-enabled device, including computers, smartphones, and/or iPads. In
addition, it provides data to determine ROI, tax deductibility, usage rates, and more from
sponsorship assets, season tickets, luxury suites, hospitality, and events (Spotlight Ticket
Management, Inc., 2010).

As inventory management software and technology become more advanced, and as updates
continue to be made to existing programs, Fortune 100 respondents B, D, E, I, L, M, N, and O have
seen a shift toward utilizing software to manage their inventory. It is expected that this trend will
continue to increase as organizations are held more accountable for their ticket inventory and are
charged to measure more precise ROO and ROI on their ticket investments.
Evaluation
The lack of evaluative tools should be a concern to both premium seating clients and sports
organizations. It is a benefit to both parties to be able to measure the effectiveness of the
investment in premium seating. The limited marketing budget of a corporation means that sports
teams are competing with a variety of other entities for marketing dollars. Therefore, it is in teams'
best interest to help corporate clients evaluate their investment. This assistance should begin in the
prospecting phase of selling and continue throughout the contract to track and document these
benefits for renewal purposes (Titlebaum & Lawrence, 2010).
Most of the Fortune 100 companies indicated they were interested in the impact on revenue/sales
for their company as a result of their ticket usage at games. Although this was given as a primary
objective, account executives also should focus on creating additional forums for premium ticket
holders to generate business by creating unique business-to-business opportunities for them. This
would provide premium purchasers with an alternate means of soliciting new business in addition
to sporting events. Premium seating sales professionals also should offer clients guidance and best
practices in how to activate and maximize their inventory in order to provide outstanding service
to clients and prospective clients to ensure a mutually beneficial relationship. Many of the
respondents explained that they would appreciate any ideas to leverage their relationships and
maximize their investments. Ideally, personnel representing corporate premium clients could
attend educational forums in which new ideas are shared, and discussed. Some teams do take a
proactive approach by suggesting new programs, benefits, and areas of improvement to corporate
clients to continue to enhance and maximize their partnerships.
To ensure that premium seating sales professionals can provide measurable and valuable ROO to
their premium clients, in-venue and in-game marketing benefits should be utilized, monitored, and
measured as tangible and valuable assets. Along with offering the previously described
enhancements and successful strategies on how to activate their investments, Fortune 100
representatives suggested that their team account managers find opportunities for additional
signage and branding for premium purchasers, especially luxury suite holders. This would allow the
premium service staff to capture photos of attendees with the brand logo and can be included in
evaluation reports generated by either entity. For example, one commonly activated branding
opportunity is the luxury suiteholder's ability to decorate the interior of the suite with corporate
branding. This means each guest who enters the suite will be exposed to the suiteholder's branding
and mark(s). Additional opportunities for increased brand exposure for each individual suiteholder
include incorporating their corporate logo on each suite ticket; providing guests with branded
corporate gifts (ticket lanyards, promo items, autographed memorabilia); and providing
customized corporate-branded photos as takeaways for all their guests. Given the competitive
environment that most businesses operate in, these simple steps may set the company apart from
competitors in the client's mind.
Renewal and Retention
Many of the Fortune 100 representatives reported that they often will renegotiate their ticket
location at the time of renewal. Because the length of the contract period varies greatly based on

many variables (i.e., economic climate, food and beverage pricing, renewal pricing, and incentives),
sales executives should target attractive offers and exclusive package deals for key accounts who
agree to longer contract periods and earlier renewals (Titlebaum & Lawrence, 2010). For example,
certain sporting organizations and venues offer their clients a 10% discount on the cost of the suite
if they renew before a certain date. Another practice is to throw in free tickets to additional
events that they host at the venue in return for an early suite renewal or full-season commitment.
Many sports organizations provide renewal rewards for many of their premium clients. Food and
beverage catering credits are most common and serve as an attractive incentive for corporate
luxury suiteholders.
Limitations and Future Research
This study provides a basis for understanding the buyers of premium seating inventory and provides
a baseline from which future research can be developed, but there are some limitations in this
exploratory study. Those who make decisions related to premium seating purchases are high level
executives with a limited amount of time to engage in research, so gaining participation was
challenging. Relying on a convenience sample (participants in the Association of Luxury Suite
Directors Suite Holders' Focus Groups) might have limited the applicability of the results to a
larger population, as these individuals and companies have a demonstrated interest in
understanding the suite marketplace. A sample that extended to Fortune 500 companies or beyond
might reveal greater variation in results, additional insights, or differences between types of
business segments.
As more information becomes available, there will be opportunities to focus future research in a
variety of areas. First, the results will allow future quantitative research to be developed from
these qualitative results. Second, this study can be expanded to include more, and varying types, of
corporations. These results can then be compared with the results from the Fortune 100 companies.
Third, while the majority of premium seat purchases are from a business entity, it would be helpful
to understand the motivations of an individual consumer. Fourth, the intercollegiate athletics
market has yet to be investigated related to the premium seating sales, service, and retention
for business or individual consumers. Finally, there is no academic information on an international
level related to the premium seating industry.
Conclusion
Over the last few years, revenues from premium seating have faced many changes due to economic
turbulence and rampant corporate downsizing. Service representatives have the opportunity to turn
the challenges of the last decade into an additional stream of revenue for the sporting
organization/venue. The areas of concern and strategies examined in this study will help all
premium sales and service representatives achieve greater results and increase sales. Bill Crocket,
the national director of sports architecture for AECOM Ellerbe Becket has been quoted as saying:
It's clear even to the most hesitant of facility operators that suites will require daily handling from
here on out, if only because the recession has managed to send everyone, high rollers included, in
search of value. (Cohen, 2011, para. 11)
Premium seating sales executives who understand their current and future clients and are willing to
meet their wants/objectives will set their organizations apart from others and solidify profitable
and long-term mutually beneficial relationships with their most valuable clients (Titlebaum &
Lawrence, 2010).

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Peter Titlebaum, EdD, is a professor of sport management at the University of Dayton. His research
interests include luxury suites sales and sponsorship activation.
Heather Lawrence, PhD, is an associate professor of sport management at Ohio University. Her
research interests include intercollegiate athletics, luxury suite sales, and gender equity.
Chris Moberg, DBA, is a professor and chair of the marketing department at Ohio University. His
research interests include supply chain management, logistics performance, services marketing,
sales effectiveness, sport marketing, and ethics. Christina Ramos is the marketing and promotions
manager at the Orange Bowl Committee. She is a 2012 graduate of the Professional Master of
Sports Administration program at Ohio University.
Table 1 Total Number of Luxury Suites and Seats within Suites, 2011-12 Suites Seats Average
Total Number Low High Number of Suites Number Number League of Suites by Team of Suites of
Suites MLB 2,298 76.60 19 195 NBA 2,737 91.23 24 192 NHL 2,752 91.73 30 167 NFL 4,875
152.34 80 360 Total 12,662 103.78 Low High Number Number Number League of Seats of
Seats of Teams MLB 10 300 30 NBA 4 300 30 NHL 4 150 30 NFL 6 100 32 Total 122 Source:
Association of Luxury Suite Directors 2010-2011 Reference Manual Table 2 Premium Seats
Interview Questions Background 1. How long has your corporation used premium seating? 2.
What is the total number of venues/teams for which your firm has purchased premium
seating? Characteristics of buying process 1. When your firm goes through a typical buying
process (or re-buying negotiation) with a venue or professional team, what is the process like? 2.
How long does it typically last? 3. How many people, and who, from your firm are involved? How
many people, and who, from the venue or team are typically involved? Criteria used by the firm
during the buying process 1. Why does your firm invest in premium seating? 2. Of the reasons
mentioned, what is the primary reason your company invested in premium seating? Planning and
execution of the game-day experience 1. When you are preparing for an upcoming event, how
many people from your firm work with the venue or team? Are they the same people who were
involved in the buying process? 2. How important is activation relative to premium
seating? Value of premium seating investment 1. What criteria do you use to evaluate how well a
game or event went when your firm uses its premium seating? 2. Does your company use Return
on Investment when determining the value of your premium seating? If yes, how do you
measure these results, and has the ROI been strong? 3. If no ROI is calculated, how do you
measure the value of investing in premium seating? Table 3 Description of Expert Panelists and
Interview Respondents Panel of Experts: Employment Information 1. The Executive Director at a
sport-related trade association responsible for planning and executing the annual conference
and tradeshow held each year in a premier city with the newest and most newly renovated sports

venues within the past 5 years. 2. The Sales Director at a sports marketing and sponsorship
firm that led one of the largest sponsorship marketing departments in the financial services
industry for 7 years and ranked by Bloomberg Businessweek as one of the Top 100 most influential
members of the sport industry. 3. The Director of Ticket Sales for a Major League Baseball
team for 20 years with responsibility for 60 suites. Interview Respondents: Characteristics A.
President of Global Corporate Payments & Business Travel; Financial Services; Texas B. President
of Marketing; Grocery Retailing; West Coast C. Chief Revenue Officer and President of Commercial
Operations; Media & Entertainment; New York D. Vice President, Global Sponsorship, Access &
Experiential Marketing; Financial Services; New York E. Vice President, Program Planning and
Development; Insurance; Midwest F. Director of Marketing and Strategy; Food & Beverage;
Midwest G. Director of Sponsorship Marketing; Information Technology; California H.
Relationship Manager, Corporate Marketing; Financial Services; Midwest I. Senior Manager,
Sports Sponsorships and Customer Events; Communications; New York J. Alliance Partner
Manager; Energy; Texas K. Manager Corporate Sponsorships; Communications; Midwest L.
Industry Events Manager; Grocery Retailing; South M. Head of Sports & Entertainment Marketing;
Media & Entertainment; New York N. Procurement Strategist Marketing Services; Financial
Services; Midwest O. Executive Assistant Senior Vice President & Chief Administrative E-officer;
Insurance; East Coast