Springfield Cardinals Case

The Springfield Nor’easters:

Maximizing Revenues in the Minor Leagues

T01704225艾 可 Anouk Arends工管三 B99701112 駱柏蓁

B99701141羅文吟 B99701150 李韻坊 B99701156張宇婷

Summary

The Nor’easters, a minor league baseball team, just opened their office in Springfield. Although Larry Buckingham has plenty of experiences in marketing various entertainment services, this is his first time dealing with sports industry. He has to figure out the profitable price for season tickets before the mid-June 2008.

The City of Springfield

What Buckingham knows about Springfield is that it used to be a manufacturing center, however, in 2008 only a few manufacturers remained. Therefore, Springfield lost a great proportion of higher-wage-earnings resident. Also, nearly 25%of the families lived below the poverty line. A large proportion of the households comprised families with children under 18 years old. Aside from the bad news, there was some good news. Emerging small businesses due to low-cost housing and plentiful labor offer the hope of future employment opportunities for the city’s youth population. Something strange about Springfield is that residents here were rarely exposed to professional sporting events and if they want to attend a professional sporting event, they have to drive elsewhere in order to do so.

Minor League Baseball

Minor league baseball is very popular and generally well attended because fans enjoy seeing young players eager to show off their potential and played hard during the game. Major league baseball often sends young players for development to minor league baseball for training. The major league teams provided funding for the players’ salaries and bat and bell expenses while the minor league teams were responsible for all operating expenses ($1961379). Therefore, club owners ran their business as viable business so does the Nor’easter’s owner expect. He expected to at least break even in the first year. There are some donations and offsets for the team,...