How to Make $ on Athletic Events 2016 Compliance Seminar

1. How to Make $ on Athletic Events2016 Compliance Seminar Linda D. Robertson Associate Executive Director for Business

2. Turning a Profit Basic Business Maximizing Income Minimizing Expense Taking Control Florida High School Athletic Association

3. 3 Basic Business Tenants • Have something to sell • Have customers willing to pay • Sell for more than it costs to produce Florida High School Athletic Association

4. To have ongoing success: ……PLEASE THE CUSTOMER! Florida High School Athletic Association

5. A satisfied customer is a repeat customer Ever gone to a free event and felt cheated? Florida High School Athletic Association

6. How do you apply business to HS Athletics? Florida High School Athletic Association

7. Let’s Hear From Audience: • Why do you think people pay to attend high school events? Florida High School Athletic Association

8. Support their child • Support their school • Support their community • Love the sport • Entertainment – something to do • Pride by association – be a part of something Florida High School Athletic Association

9. Let’s Hear From Audience: • Who are your customers? Florida High School Athletic Association

10. Students • Parents/family of students • School staff/county staff • Community • Sports fans in general Florida High School Athletic Association

11. Breaking Down the Business Components #1 - Maximizing Income • Building fan experience • Ticketing • Merchandizing • Concessions/parking • Media • Sponsors Florida High School Athletic Association

12. Maximizing income Improving Fan Experience • Start with students – focus groups – opinion surveys – what would make them go to the event? • Create atmosphere of FUN • Band/Music • PA system • Dress the field/stadium/gym • You are selling the “sizzle” Florida High School Athletic Association

13. Maximizing income Branding • No school spirit? No tradition? Worn out, or weak traditions? • Think about re-branding • Varsity brands project – Gibbs HS & Anclote HS Florida High School Athletic Association

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18. Sunshine State Spirit Showdown • https://www.youtube.com/watch?v=RhGueaycDbQ&index=7&list=PLZjuFVQzKj_tOlNrwHBs9R1Eg9av2zjlv • River Ridge High School Florida High School Athletic Association

19. Building a Fan Base Audience participation--- • Can anyone share a successful idea on how to build fan base, attract students or simply create excitement for your event? Florida High School Athletic Association

20. Maximizing income Customer Service– • Use good judgement & empower staff/volunteers • Recognize the crowd is your CUSTOMER • Example: no exit & return policy (elderly man leaves to get umbrella) • Make sure staff know the reason behind rules & follow intent of the rule, but use discretion when warranted Florida High School Athletic Association

21. Customer Service– • Avoid: • Long lines waiting to pay for anything • Grumpy or rude volunteers/workers Florida High School Athletic Association

22. Customer Service– • Consider accepting credit cards • Consider e-ticketing BOTH of these are untapped areas of potential increased sales and customer service Florida High School Athletic Association

23. Maximizing income Promote your event • Take advantage of free public service announcements • Newspaper • Radio • TV – PBS • School billboard Florida High School Athletic Association

24. Maximizing income Admission Prices • Offer discounts to attract students & retirees • Compare to surrounding schools prices – keep up • Reduce/control use of “complimentary” tickets • Are you accepting coaches passes? Are you asking for ID? • Your first job is to create a fan base! May need to let in free or charge very little to “grow” a following and make events exciting and “worth” the price of admission Florida High School Athletic Association

25. Maximizing income • Charge entry fees for tournaments • Research what others are doing • If sanction fee required (Classics) build it into the ticket price Florida High School Athletic Association

26. Maximizing income Merchandizing • T-shirts & souvenirs should yield 20 to 25% royalty Florida High School Athletic Association

27. Maximizing income Merchandizing • Start a tradition linked to merchandise (shakers, cow bells, unique hats) Florida High School Athletic Association

28. Maximizing income Merchandizing • Other Ideas: • Offer free admission to students wearing SPORT or even specific T-shirt • Offer special seating (roped off area) for those wearing T-shirt • = Florida High School Athletic Association

29. Maximizing income Media Rights – once you have established a following, don’t give media away for free! • Live streaming (NFHS Network) • Local radio • Local TV • National TV (seek help from FHSAA) Florida High School Athletic Association

30. Maximizing income Parking & Concessions • Bring awareness and demand efficiency – THIS AREA CAN SURPASS TICKET SALES - and discuss fairness of profits to be split – without the event, no customers Florida High School Athletic Association

31. Maximizing income Parking • Typical for some schools to “give” away to clubs, other • Know how much it is worth – discuss the big picture with school leaders – all funds raised are due to the event – make sure the split is fair • Even open fields can pull this off (Orlando Citrus Bowl) • $5 is common (figure 4 per car to estimate value) Potential value is $2.50 per person Florida High School Athletic Association

32. Concessions • Important experience for customer – so even if athletics doesn’t get $, push for efficiency in that area as part of fan experience • Do you know how much they make? • PA advertise for them? Florida High School Athletic Association

33. Maximizing income Concessions – good business practices • Get donated items or purchase in bulk • Use Soda machines vs cans • Souvenir cups & free refill • Always have efficient and ample volunteers so people don’t have to wait to pay! • Tap into community service groups to work or rotate among other sports and student groups for big events Average profit AFTER cost is $1.50 per customer Florida High School Athletic Association

34. Maximizing income Concessions & Parking – the BIG picture - $$$ FHSAA Region Cheer events: For each $6 ticket sold in 2016 Average customer spent $10.25 $2.00 for food concessions $2.50 for parking $5.75 for souvenirs Florida High School Athletic Association

35. Think about it… • Ticket sales on average are only 40% of event income • Do you only get the ticket revenue and pay 100% of the event cost? Florida High School Athletic Association

36. Maximizing income Sponsors • Think about who else benefits from the crowd at your event • Restaurants • Hotels • Corner convenience store • Sell ticket back sponsorship • Offering discounts if they visit their business • Step beyond typical banners, program advertisements • Big event? Make it a special sponsorship Florida High School Athletic Association

37. Breaking Down the Business Components #2 – Minimizing Expense Audience input – What are your largest event expenses? Florida High School Athletic Association

38. Breaking Down the Business Components #2 – Minimizing Expense • Personnel costs • Professional services costs • Mandatory vs optional costs • Volunteers & Donated goods Florida High School Athletic Association

39. Don’t overpay for services • Key to reducing costs is to understand what you are currently spending and why • Compare what you pay for services to what others pay • Don’t be shy about replacing a paid job with a skilled volunteer Florida High School Athletic Association

40. Minimizing Expense Don’t overpay for services • Event managers • How many ticket sellers/takers do you need? • Do you really have to pay for score keeper, PA – or can you get a “quality” volunteer Florida High School Athletic Association

41. Minimizing Expense Don’t splurge on non-essential items • Hospitality • Excessive signage • Excessive uniformed security • Elaborate trophies/awards for tournaments • Paying for services that volunteers can handle Florida High School Athletic Association

42. Do you have to rent facility? • Talk about the rate with school leadership (if your school) • Talk about the rate with off campus sites – consider options – use a public school (rates may be lower) • Share the facility cost with everyone that is benefiting from sales at the event (concessions, parking) Florida High School Athletic Association

43. Minimizing Expense Security costs eating you up? • Reassess the amount needed • Talk about the rate with school leadership • Seek parent volunteers that are in security/police careers • Share the security cost with everyone that is benefiting from sales at the event (concessions, parking) Florida High School Athletic Association

44. Minimizing Expense Share costs with concessions/parking groups: • Any mandatory event cost that can’t be reduced • PA announcer – who helps advertise the concessions • Any event advertising costs • Keep thinking…many event costs help all groups that are making money at the event – not just athletics Florida High School Athletic Association

45. Minimizing Expense Volunteers are KEY • Must have a coordinator of volunteers (booster) • Use parents talents (police officers, nurses, handyman, retail clerks, CPA, etc.) • Don’t overlook student clubs and community service organizations Florida High School Athletic Association

46. Breaking Down the Business Components #3 – Take Control • Inventory & Cash • Entry points & passes • Atmosphere of control Florida High School Athletic Association

47. Proper Controls Inventory & Cash • ALWAYS 2+ people • Inventory before and after and count cash • Get sales reports for EVERYTHING – not just tickets – ask for copies of concessions and parking reports –transparency– everyone involved should know how much $ is being made or not being made • Put uniformed officer or security by cash sales Florida High School Athletic Association

48. Proper Controls Ticketing • Tickets = CASH • Pre-numbered tickets or bands • Inventory before and after • Put uniformed officer or security by cash sales • Atmosphere of control! Florida High School Athletic Association

49. Proper Controls Entry Points • No freebies • Control the passes & credentials – check IDs, or sign in • Create and show atmosphere of control Florida High School Athletic Association

50. Comparable Events – • Same sport/similar attendance – one makes money, the other doesn’t – real events (case studies) Florida High School Athletic Association