Analysis

The Incremental Value of a Fan

The Incremental Value of a Fan

The 2011 Pittsburgh Pirates are starting to stir up long-dormant feelings amongst the populace of the Pittsburgh metropolitan area.  When you walk around town, you see more people wearing Pirate hats and shirts.  People are actually talking about the Pirates in positive terms in mid-June for the first time in a long while.  The play of the Pirates, especially Andrew McCutchen, Joel Hanrahan, and the starting pitchers are starting to captivate the imaginations of people who may have become disinterested in the team during their 18 year-long odyssey through the desert.

These people are showing their approval with their paychecks, as attendance is up an average of 2,710 people in 2011 versus 2010 at the same point through 33 home dates (20,788 to 18,078).  But how much of a revenue increase is that for the Pirates based on a typical fan?

Let’s say a fan orders ahead and get a nice mid-range priced seat – the outfield reserved section 140 for $17 (the average weighted ticket price at...

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