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Home » Sports

Tuesday, January 13, 2009

Finding new pitches

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As the recession deepens, the extravagance of season tickets has become a tough sell. In response, clubs are getting more creative, doing whatever it takes to fill their ballparks.

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With their new stadium and $423 million spent on three free agents, the Yankees don't seem to be feeling the economic crunch.

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By Ben Goessling

Tom McDonald's job isn't usually this stressful. For the past decade, the San Francisco Giants' senior vice president of consumer marketing could sell pennant races, Barry Bonds and one of America's most widely praised ballparks to one of its most affluent markets.

Since AT&T Park opened in 2000, the Giants had drawn more than 3 million fans every season. Until last year, that is. With no Bonds and a fourth-place team whose best attraction (National League Cy Young winner Tim Lincecum) is only on display every five days, attendance sagged to 2.86 million - nearly 360,000 fewer fans than packed the ballpark to watch Bonds chase Hank Aaron's home run record in 2007.

Now McDonald is trying to line up season tickets while Californians are saddled with the third-highest unemployment rate in the nation. Around Christmas, that got the Giants into the discount retailer business.

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They rolled out a $49 gift card at warehouse club giant Costco, good for four reserved tickets to a 2009 game. They slashed prices on 28 percent of their season tickets, held another 55 percent at the same price as last year and gave fans six months to make season-ticket payments.

On top of all that, they will become the first MLB team to use dynamic ticket pricing, moving prices up or down on 2,000 upper-deck seats until the morning of a game based on a computer model that projects demand.

"It's probably more difficult than any year since we've moved into this ballpark," said McDonald, who said the Giants are four points off their goal of retaining 88 percent of their season-ticket holders. "It's difficult for us to project revenue with some sense of certainty. We'll plan for the worst and work for the best."

He isn't alone. In baseball, which might be the most market-driven of all the major sports, the economy is leading teams into territory most haven't seen since well before the stadium boom started with the opening of Camden Yards in 1992. Even though 2008 attendance was the second highest in MLB history, it represented a year-over-year drop for the first time in five years. In October - just after the start of the financial-services meltdown - commissioner Bud Selig warned teams not to "get too cocky" with ticket prices for 2009.

In the final weeks before pitchers and catchers report, the prevailing sales strategy is to try anything and everything to get fans to the ballpark. Twenty-three of 30 teams have cut or frozen ticket prices or introduced new discount options for the upcoming season. While the Giants are working with Costco, other teams are offering season tickets with the kind of discounts usually found there.

The Indians have a buy-one-get-one-free deal on some full-season packages. In Seattle, it's buy two, get two free - potentially dropping the price of four full-season packages by $6,300.

"It's fair to say a lot of people are very concerned. We're accepting [that] they're being very cautious," Mariners public information director Rebecca Hale said. "If someone calls and says they want to stay with us, we'll see what we can do to try and make it possible."

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