The Best Investments Often Have Nothing to Do With
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20090615-NEWS--11-NAT-CCI-CL_-- 6/11/2009 4:04 PM Page 1 JUNE 15-21, 2009 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 Indians: Team sees affiliates as positive to fan base continued from PAGE 1 Crushers), you’re looking at our future manager. “We’re placing a huge The decline contrasts sharply with a stars, and that’s helpful to us.” emphasis on the value we’ve always solid attendance increase at the new While the Indians have slashed offered.” Huntington Park in Columbus, home some prices and continually develop Said Crushers general manager to the Clippers, now the Indians’ Class promotions, their counterparts always Ryan Gates: “We said on our speaking AAA affiliate. The Clippers lead the can go lower: A June weeknight ticket tours that we’re not looking to steal International League in attendance, at at Progressive Field averages $32.81; at Indians fans; we don’t expect anyone 8,981 per game for 24 home dates, up Huntington Park, it’s $9.33, and at to not be Indians fans. We can carve 13.2% from an average of 7,795 in 69 Classic Park in Eastlake, it’s $9. out a niche and offer a value, because home dates in 2008. The Captains have all-you-can-eat that’s what people are looking for.” The Lake County Captains, too, nights for $15, while Indians’ seats are But the shift still may be happening, are seeing an increase, of 4.9%, to $32; the Crushers’ family four pack is said Avon Mayor Jim Smith. 3,125 per date through 27 games this $44 and the Aeros is $48, while the “People that love major league season compared with 2,973 through Indians’ offerings start at $51 and go baseball still love major league base- the same number last year. The up, based on seat selection. ball, and I don’t think they’ll stop Crushers, in their first season at All “Like any business, we’re trying to going (to Progressive Field),” he said. Pro Freight Stadium, are averaging hold our line on what you charge your “But in these economic times, it’s dif- 2,896 fans through their first six games, customers, and we’re pleased with the ficult to take two or three kids to an In- and the Akron Aeros are averaging attendance,” said Brad Seymour, the dians game. … This gives people the 4,394 fans through 28 games at Canal Captains’ vice president and general ability to go to more games.” ■ Park, though that number is down about 7% from last season. So, is the major-league experience diminishing in value? Are cost- conscious fans more willing to stay closer to home? Or will the fans come back with a hoped-for summer rise in the standings? “There’s never been evidence of minor-league teams affecting major- league teams,” said Mark Rosentraub, a former Cleveland State University professor and the new endowed chair of sports business at the University of Michigan. “If people want major league baseball, they’ll go see it. The economy is certainly a crushing, more harmful blow.” Mr. Rosentraub cites as examples Detroit and Phoenix, cities where the economic downturn has had a larger HE BEST INVESTMENTS impact: The Tigers, despite being in T first place, are down 26% through 28 games, to 28,418 from 38,504, while the Arizona Diamondbacks are down OFTEN HAVE NOTHING 7.2%, to 26,742 from 28,801. But Allan Sanderson, an economics lecturer and sports business expert from the University of Chicago, said TO DO WITH MONEY the economy may not be the only . factor in the case of Northeast Ohio and the Indians. “My sense is that fans and families are trading down in general, (such tock indeexes and asset allloco ations are one thing. But inn the end, what really matters as) Walmart and Target instead of more upscale department stores,” are the innvestments we make in the lives of those arroound us. At the Prrivate Client Mr. Sanderson said in an e-mail. “But it’s also true that anytime there Group, we help you manage, grow and preserve youur wealth, so you cann provide for is an attractive, less expensive option, customers — or in this case, those you care about most. We offer straategies and solutions for persoonnal trusts, estate fans — will also gravitate to those.” administration andd charitable giving to ensure you leave your legacy and reach your Speaking of prices … The Indians greatly ratcheted up personal goals – onees that enrich and enhance your life and the lives of those around you. their promotion efforts in anticipa- tion of a tough summer because of the lousy economy: They introduced Now that we’re part of PNC, you can rely on our reputation as one of America’s best- all-you-can-eat seats and kept their * existing dollar-dog nights, family performing large banks. With an A rating from Standard and Poor’s and approximately nights and other promotions, such ** as Big Mac Mondays, when fans with $96 billion in assets under management, let our strength and stability be the basis for yours. a Big Mac lid can get a ticket free when they buy a ticket. Trust is something we earn. The team also unveiled its value pricing model, which drastically To experience the Private Client Group in Cleveland, reduced ticket prices for less desirable games. For example: a field box call Barry Robinson, Market Executive, at 216.222.7272. ticket was $25 on weeknights in April and May, but will be $60 for this week’s series against the Milwaukee Brewers. Dennis Lehman, the Indians’ exec- WEALTH PLANNING | Investments | Private Banking | Trust & Estate Services utive vice president of business oper- NATIONALCITY.COM/PRIVATECLIENTGROUP ations, said the team’s poor start has hurt and that fans are far less commit- ted — and thus more influenced by The PNC Financial Services Group, Inc. (“PNC”) provides investment and wealth management, fi duciary services, FDIC-insured banking poor weather at 5 p.m. on game day, products and services and lending and borrowing of funds through its subsidiaries, PNC Bank, National Association, PNC Bank, Delaware for instance — than in the past. But and National City Bank, which are Members FDIC. PNC does not provide legal, tax or accounting advice. he said the team views the region’s minor-league teams, especially the Investment products are: Indians’ affiliates, as positives. “We were concerned about it initially, but not anymore,” Mr. Lehman said. *As of January 19, 2009. **As of March 31, 2009. “If you are an entertainment seeker, minor-league baseball is a great, ©2009 The PNC Financial Services Group, Inc. All rights reserved. value-driven activity. Except for (the 65949_70145_CCLEVB_TBIR2.indd 1 5/27/09 4:31:28 PM 20090615-NEWS--12-NAT-CCI-CL_-- 6/11/2009 2:14 PM Page 1 12 CRAIN’S CLEVELAND BUSINESS JUNE 15-21, 2009 EVENT PLANNING Med mart plan lacks lodging element Some think adjoining hotel should be part of agenda By STAN BULLARD [email protected] big piece is missing from the plan to make a success of the new convention center and medical mart in downtownA Cleveland, according to some experts: an attached conven- tion center hotel of as many as 800 rooms with a development cost of about $160 million. However, Cuyahoga County officials are leaving that project to a JASON MILLER The Cleveland Zoological Society held its ZippityZooDoo fundraiser June 5 at the Cleveland Metroparks Zoo. The nonprofit, like many of its counterparts, private developer, if not for now, for scaled back some event costs to maximize its profit margin. after the $425 million mart and convention center opens in 2012 and establishes itself in the meeting marketplace. It’s an approach that suits most local hoteliers because of the dire effect the recession has had on the hotel market. PLANNING AHEAD But the failure to put a big new convention center hotel on the Nonprofits compensate for economic challenges by minimizing agenda puzzles David Sangree, president of Lakewood-based Hotel event costs, developing creative fundraising strategies & Leisure Advisors LLC. By SHANNON MORTLAND nonprofit was trying to keep costs “We absolutely, positively, [email protected] for ZippityZooDoo on June 5 down should have a hotel that is connected to the center.” from previous years by enacting he Cleveland Zoological – Bruce Harris Society expected to raise a such measures as buying less costly retired president, Conferon Global little less money at one of gifts for attendees and not renting Services, now Experient Inc. its major fundraising extra portable toilets, she said. Tevents this year, but the nonprofit In the end, the society raised “With all this talk about the $218,000 from the event this year, convention center and the medical group didn’t allow its feathers to get mart, there’s been almost none ruffled. down 15% from the $255,000 raised about the convention center hotel and where people will stay,” Mr. It instead decreased its costs to last year, she said. Despite the decrease in donations, the society Sangree said. “A connected conven- host the event in an effort to widen tion center hotel should go in at the its profit margin, said Tara Turner, held costs for the event to 50 cents same time. The conventions will per dollar raised. want the medical mart and conven- director of external relations for the tion center connected to a hotel. Cleveland Zoological Society. The See COSTS Page 17 Some people will walk. Some meeting planners will not consider you if you do not have a connected hotel.” Mr.