18 | THE MARLINS & THE ECONOMY SOUTH FLORIDA BUSINESS JOURNAL | APRIL 8-14, 2011 Value of Marlins rises – before new ballpark opens BY JEFF ZBAR More than a year before the Florida Mar- lins are set to open their new ballpark, the team is showing growth in its market value. This comes as it is about to reap the fi- nancial rewards from season ticket and suite sales, advertising and sponsorship rev- enues, and the avoid paying rent to the Mi- ami Dolphins. A crowd of The Marlins’ increase in market value was fans does the noted as Forbes released its annual report on wave at the the value of all 30 Major League Baseball fran- groundbreak- chises. While the New York Yankees led the ing for the new way at $1.7 billion, the Marlins ranked 24th – Florida Marlins and rising. Their market value, according to ballpark. Forbes: $360 million, up 13 percent from 2009. PHOTOS BY MARK FREERKS Not bad for a franchise publicly repri- manding last season for pocketing too much of the $400 million in profit sharing proceeds successful teams sent to low-revenue teams like the Pittsburgh Pirates, Kansas City Roy- als and Marlins. SELLING THE EXPERIENCE Once the Marlins move into their new home, their tidings could change even more Marlins ramp up ticket sales, term, large-scale sponsorship agreements. land has a Fan Cave for individual suite sales, dramatically. New stadiums always have a Such deals are held off until the naming with a pool table and old-style videogames. transformative effect on team values, said plan for sponsorships rights – and associated display advertis- Muret believes the Marlins will have Eric Fisher, baseball writer with Street & ing opportunities – are sold, he said. An among the fewest suites in the major Smith’s SportsBusiness Journal. Values are a BY JEFF ZBAR announcement should come in April, he leagues. In a business that’s suffering lower function of team revenue times an industry said. What’s available conceptually are four suite sales and a prevalence of “remnant” multiplier, he said. For a team that frequently complained quadrants – red, blue, yellow and green – suites remaining unsold, fewer – and small- “So, if you increase revenue, which, of about how being a tenant in a stadium re- taken from the palette of Spanish artist Joan er – suites should help sales approach sell- course, radically changes in a new ballpark, sulted in paltry financials, the Florida Mar- Miró. Each will likely be sold to a different out. While prices haven’t dropped, making you boost value,” Fisher said. “Straight math.” lins should be quite at home when their sponsor, he said. suites more desirable, individual buyers are The best, most recent example was the new ballpark opens in one year. more inclined to purchase tickets, he said. Minnesota Twins. The team added nearly 1 From ticket and suite packages to adver- SUITE SALES PICKING UP “When you’re stuck with unsold inven- million people in attendance in Target Field tising opportunities and sales, the Marlins Seating sales have been robust. All 379 Dia- tory, that’s a big problem for these teams,” last year, compared to normal attendance at controlled little at Sun Life Stadium. Suites mond Club season ticket seats behind home Muret said. their former home, the Metrodome. At the at the football stadium made for challeng- plate have are sold. The terms: $200 to $400 Compared to suites at Pro Player Stadium same time, the team significantly boosted its ing viewing – and sales. Almost all advertis- a seat per game (depending on the row) on – a slip Samson made several times – the sponsorship business. ing belonged to the stadium’s owners. The one- to four-year contracts, Samson said. new ballpark will shine, he said. As a result, the team has reinvested the rev- Marlins were even hamstrung in what ad- The ballpark’s suites – at Founders, Leg- “The whole Sun Life Stadium experience enue into increased payrolls, Fisher said. This, vertisers they could bring in. ends, MVP and Championship levels – are for our fans is not a real baseball experi- in turn, has helped boost franchise value. “Our hands were completely tied,” Presi- all selling well, Samson said. One year from ence,” Samson said. “When they come and “In short, it’s all about revenue generation, dent David Samson said. opening day 2012, the Marlins have 15 luxu- see what a real ballpark can offer, that’s and that, more than anything, is what a new No longer. With a ballpark all their own, ry suites remaining to be sold, Samson said. when I know we have de- ballpark aids,” he said. Marlins executives are creating ticket, suites Buyers have locked into three-, five-, sev- livered on our Bring on a new stadium with all the ame- and sponsorship packages decidedly differ- en- or 10-year commitments; the staggered promise.” nities and profit streams and the Marlins’ ent – and definitely their own. terms prevent all suites from turning over tidings should only improve – boosting the “They’re have more platforms and vehi- the same year. All suite sales are full year; team and its sponsor partners, said cles to work with: the scoreboard, message none were single games or fractionals, Sam- Scott Becher, president of Sports & boards, ribbon boards, rolling signage, the son said. Sponsorships, a Boca Raton-based Internet. It’s all going to be the Marlins’ The only exceptions are the two Cham- sports marketing consultancy. money,” said Jim Riordan, director pionship Suites. Patrons can buy a single “The truth is the Marlins have a strong fan of Florida Atlantic University’s game ticket in the suite, which features base and their TV ratings are fine. Fans fol- M.B.A. in Sport Manage- food, beverages, parking and seating, for low the team, they just don’t like showing ment Program in Fort $150 a game. up to games,” he said. “If the Marlins were a Lauderdale. “How they In fact, the Championship Suite concept sponsorship stock, it would get a ‘buy’ rat- present their inventory is ideally suited to South Florida, Sam- ing – fairly priced this year, with great makes it more attractive to son said. This market is home to upside.” sponsors to know that fans can few deep-pocketed Fortune 500 view a nice presentation of their prod- or 1000 companies, but hosts Players include Os- uct being advertised.” numerous, very successful small valdo Martinez, near At Sun Life Stadium, the Marlins con- and medium-size businesses, he right, and Hanley trolled very little advertising inventory. Sta- said. Those companies have the Ramirez, far right dium management controlled that. budget to buy Championship Suite with Humberto For a team that complained about low seating, he said. Quintero of the profitability – to the point that Major League Houston Baseball publicly reprimanded executives for TAPPING LEAGUE TRENDS Astros. not spending enough of the proceeds it re- The Championship Suite concept is ceived from league revenue sharing – the gaining favor around the league, said Marlins stand to reap a windfall from Don Muret, staff writer for facilities newfound resources. for Street & Smith’s SportsBusiness Samson still has yet to sell any long- Journal. Progressive Field in Cleve- SOUTH FLORIDA BUSINESS JOURNAL | APRIL 8-14, 2011 THE MARLINS & THE ECONOMY | 19 Will a new ballpark build a bustling community in Little Havana? BY JEFF ZBAR Estate Advisors, a real estate consultancy in Coral Gables. Werley once focused his con- The 1999 arrival of the Staples Center in sulting on sporting venues and convention Los Angeles came with a promise of develop- centers. While he hasn’t studied the new ball- ment in the surrounding neighborhood. Six park, Werley believes economic impact will years later, the first phase of L.A. Live – a ro- be minimal, and “the weight of the evidence is bust entertainment, dining and residential against” any promise of return on investment community contiguous to the Lakers’ home on the tax dollars invested. arena – began to take shape. “It’s not sustaining activity because you Today, it’s a $2.5 billion complex. tend to go in, go to the event, then go to your For many, any comparison between the favorite places that may be closer to home,” Lakers’ home and the ballpark the Florida he said. “It’s not game-changing in that area, Marlins are building ends with the sports nor will it improve real estate values in any centerpiece. significant degree. The biggest impact of this From changing landscapes to triumph on facility will be tapped out upon completion the field, much will drive success for the sur- of the construction process.” rounding Little Havana community. Some Many locals and longtime residents recall remain bullish. free enterprise that blossomed each game The arrival of the ballpark day around the Orange Bowl. Parking spots and the traffic it will bring could be had for $10 to $20, with the prom- could spill over into nearby ise of “no blockie,” or getting blocked by oth- retail and restaurant devel- MARK FREERKS er vehicles. Marlins President David Sam- opment, said Monette Klein The traffic the ballpark brings could spill over into development, Monette Klein O’Grady says. son believes the prospect of 81 home games O’Grady, partner with Prime – and playoff games, if the team performs – Sites. The Miami leasing to come down town.” the area, he said. as well as other events on the calendar, will firm is working to secure The city may drive some of that develop- “That will be a good to drive revitalization feed area businesses.