Quote:
Originally Posted by Azure
The seats above the press boxes cost what? $35 a seat? If you have 18,000 'prime' seats, and 3,000 more 'press box seats'....you're adding approximately. $100,000 per game in ticket revenue, plus concession revenue.
Over 48 games, that is $5 million in additional revenue, and over a 30 year lifespan for the arena, it equals over $150 million in ticket revenue alone. I would imagine concession revenue is also quite a bit per game, as fans up there tend to be rowdy and drink a lot.
Still not worth it? Considering it gives middle/lower class people the ability to buy tickets, I would absolutely say it is worth it. Not everyone can afford to pay $100/game for a single ticket, and if they go with the AVERAGE family of 4, the cost of going to a game can be up to $400. If you buy Sportchek Zone tickets or upper level seating, the cost is around $200/game.
But it all depends on demand. If there is a 10,000 person waiting list for season tickets, and a waiting list for suites....plus good demand for game packs and single game tickets...it is worth it. But obviously if there isn't much demand for more than 19,289 tickets, there isn't much point in adding the additional 2,000 seats.
|
That's assuming you can sell all of the seats, and again, remember, those seats you are adding are the furthest away seats, and may not give a good game experience. You get more revenue from those seats, but you also have to pay more cleaners, consession workers, ushers, etc, to work the extra seats. The seats you add bring in less revenue, but the cost of servicing them is the same as any other seat.
The big reason why those extra seats cost so much to build, is that the roof spans are bigger, the whole building becomes taller. More stairs are required to get people up higher, and the stairs have to be wider, because they must handle more people. More people wanting concessions and bathrooms means that more of those are going to be required, meaning more space down below is required to handle those things. More entry doors, more ticket checkers, etc.
Your calcuations say $150 million in ticket revenue alone, but it might cost an additional $100 million or more just to build those seats.