LOCATION, LOCATION, LOCATION

Being in the right place is key to any business venture success!

Learning Targets

• I can evaluate and select a location for my VBS football franchise.

• I can utilize market research and observation to make informed decisions.

VBS – Lesson Key Terms

• Franchise

• Fan Loyalty

• Seating Capacity

• Infrastructure

Franchise

• Permission (contract) to a group or single entity to sell company’s good or services within a certain region at a specific price with specific rules.

Who franchises in professional sports….

Note – in the VBS you will own and operate a franchise within the PFL.

Fan Loyalty

What drives fan loyalty?

• Location (where you were born/live)

• Tradition (root for the same team as your parents, big brother/sister)

• Winning

Note – the sport or teams loyalty plays a key factor regarding the price fans are willing to pay for a ticket and how many games they will attend.

There are two major factors in the decision process:

1. Demographics

2. Infrastructure

Demographics

•Total population of the city

•Number of people enthusiastic about the sport

•Population’s ability to afford tickets

How do we get our info/data????

• Census Bureau

• Survey’s

• Data Mining

Infrastructure

•Available venue (stadium, arena, field)

•Seating/Viewing capacity

•Parking capacity

•Possible incentives offered by the local government (tax breaks)

How can your city’s demographics and/or infrastructure change?

• Loss of jobs (factories or business close or move out of town)

• Losing becomes a trend….fans no longer interested.

• Venue needs too many updates.

• Local government changes…thus, policy changes.

Can franchises be moved?

Yes – difficult task that will require rebuilding of;1.Awareness / Interest2.Loyalty 3.Facilities4.Staff

Where has this happened before?

• L.A. Rams

• St. Louis Cardinals• New Orleans Jazz• Baltimore Colts• Houston Oilers• Brooklyn Dodgers• Milwaukee Braves• Minnesota Lakers

• Charlotte Hornets

• Montreal Expos

• Oakland Raiders

• Seattle Supersonics

• New Jersey Nets

• St. Louis Rams

• Arizona Cardinals

• Utah Jazz

• Indianapolis Colts

• Tennessee Titans

• L.A. Dodgers

• Atlanta Braves

• L.A. Lakers

• New Orleans Hornets

• Washington Nationals

• LA Raiders

• OKC Thunder

• Brooklyn Nets

Original City New City Cleveland Browns Baltimore Ravens