WORLD $ERIE$ #110: IT’$ ALWAYS ABOUT DOLLAR$ & $EN$E!

The BIBLICAL STORY of David (The KC Royals) and Goliath (SF Giants) has some modern day adaptations to the 110th World Series. These 2 forces (armies of baseball players) will do “battle” starting Tues Night. In every way possible, David is over matched by the Giants. It is only by the Royals baseball guile it’s pitching slingshot approach and its timely “direct hits” against opponents that it has succeeded. By virtue of being THE underdog during MLB’s playoffs KC has captured the interest of sports fans. While the SFG may not come from Philistine, they surely are cast in the roll being Villianstines. We shall see how “David’s” rocks are slung this coming week.

DAVID & GOLIATH

If there ever was a David and Goliath World Series, it is the story of these 2 Wildcard teams with each other in the WILD battlegrounds of Kaufman Stadium and AT&T Park. King David (played by the Royals) slew the giant with a slingshot flung rock to the head of his enemy. Let’s see how these 2 WS adversaries compare w/o the biblical overtones

  1. KC is VALUED at less than ½ the value of SF. A World Series win could increase the KCR value by as much as $100M leaving it more than 200M shy of MLB’s avg team value. The likely impact for SF would be $10M to $25M at most. (T-1)
  2. KC’s REVENUE was 56% that of (T-1)
  3. KC’s OPERATING INCOME was negative in 2013 and the 6th lowest in MLB while the SFG have the 3rd (T-1)
  4. KC’s TEAM SALARY was 60% of SF’s and it was the 6th lowest of MLB (T-1)
  5. KC’s HOME ATTD was 60% of SF’s and its ROAD ATTD was the lowest in the MLB. (T-2)
  6. KC’s AVG TIX PRICE was 78% of SF’s but surprisingly had the greatest increase over the 2013 season. What this means is that KC will have a VERY DIFFICULT time with aggressive Tix Price increase.(T-2), again.
  7. KC’s FAN COST INDEX (including tix, parking pass, beer, hot dogs, program, etc.) was 80% of SF’s but in 2015 KC had the 3rd biggest increase since 2013. (T-2)
  8. As we compare the 2 cities by size and income per capita, we again find David vs. The Giant
    1. KC’s POPULATION is about ½ of SF (T-3)
    2. It’s INCOME PER CAPITA is less than 60% of (T-3)
  9. Finally, we have a KC “winner” (so to speak) , its FAMILIES IN POVERTY% is 4 ½ % greater than in SF and its VIOLENT & PROPERTY CRIMES are both above those of OUCH,OUCH and OUCH (T-3)

 

AD RATES & AUDIENCES

 

There are 2 things that make the world of sports go round, MONEY and MONEY. Having run the gambit on biblical stories as applied to the World Series, let’s switch to Greek Mythology and chat a bit about King Midas. What we know is that he had the “Golden Touch”. By viewing T-4 we see the relationships b/t ad prices for major sports events and their audience sizes. While all sporting events want to have that Golden Touch, T-4 shows that there is great variation in that so called “Golden Touch”. The reality is that WEEKLY Sun Night Ftball’s ad prices are greater than that of the upcoming World Series, that’s right GREATER! While the WS’s pricing power has increased by 23% from 2013 to ‘14 we shall see if the audience size will justify such a hike. More importantly we shall see if David and Goliath sell on TUBESTREET USA. We shall see; we shall see!!!!

Speaking of “Golden Touches” what is the value of a Playoff Game, of a League Championship Series Games, a World Series Game. We’re sure that the folks in KC are more anxious about this than are the Villianstines. After viewing a # of reports (gobankrates.com/World Series host cities barely break even by Paul Sisalak; Royals win teams Big Bucks for KC Bizes by Katie Banks (10/11/14) and others), it is safe to say that KC enjoys a likely $5M per game impact while SF’s prospects range from 1 ½ – 2  times that. This is w/o acknowledging the security, clean up, and other related costs involved in being a HOST CITY. The real value for KC  belongs in its future.  An enjoyable, prosperous, and family friendly looking KC means FUTURE BIZ for conventions, meetings, concerts, etc. “Kansas City Here We Come?!?!?”

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About bernacmd

For over 24 years, University of Detroit Mercy Marketing Professor Michael Bernacchi, Ph.D., J.D, has produced "uNDER tHE mIKE-rOSCOPE", a newsletter discussing current "marketing and advertising¹s bends, trends & ends." A well-know fixture in Detroit and national media, UDM's marketing guru has made several appearances on CNN's "Talk Back Live," the Voice of America worldwide radio network (VOA), ABC, CBS, NBC, MSNBC and on the pages of Sports Illustrated, Time, TV Guide, the New York Times, USA Today, the Wall Street Journal and the Washington Post, to name a few. At University of Detroit Mercy, he has taught courses in Marketing Management, Consumer Behavior, Marketing Communications, Research and Corporate Social Responsibility and Sports and Entertainment Marketing. Michael Bernacchi can be reached at 313-993-1116 or bernacmd@udmercy.edu. Please appropriately attribute the following for their work on uNDER tHE mIKE-rOSCOPE: Yen Ju Lee Robert Rouse Vidhyasagar Natarajan Eric Baumgardner & Ian Young
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