The Cost of a Single Game: How a Loss in August Impacted the Dodgers‘ World Series Revenue
A single baseball game can have ripple effects far beyond the final score. Recently, scrutiny has been placed on the financial implications of the Toronto Blue Jays hosting additional playoff games, but a similar story unfolded for the Los Angeles Dodgers this past season. A loss in August ultimately cost the team a significant amount of potential revenue – nearly $23 million – stemming from the inability to host two additional World Series games.
Let’s break down exactly how that number is reached, and why even for a financially powerful franchise like the Dodgers, these losses are noteworthy.
The lost Revenue Streams: A Detailed Look
The Dodgers’ potential revenue loss isn’t just about ticket sales. It’s a complex calculation encompassing multiple income streams tied directly to fan attendance. Here’s a complete breakdown:
* Ticket Revenue: The Dodgers average over 52,460 fans per game at Dodger stadium, the largest ballpark in Major League Baseball.
* Comped Tickets: Like most teams, the Dodgers “comp” approximately 5% of their tickets for VIPs and other obligations.
* Lost Attendance: This means roughly 50,000 fewer paying customers attended games due to the lost World Series hosting opportunities.
* Average Ticket Price: With average ticket prices around $400, this translates to a loss of almost $20 million in ticket revenue alone.
But the impact doesn’t stop there. You also have to consider the ancillary spending of those fans.
* concessions: Fans spend an average of $40 per person on concessions.
* Concession Revenue Loss: This equates to nearly $2 million in lost concession sales.
* Total Ticket & Concession Loss: Combined, the lost ticket and concession revenue totals nearly $22 million.
Beyond the Stadium: Parking and Ownership Nuances
The financial impact extends beyond the stadium gates, specifically to parking revenue.
* Dodger Stadium Parking: The Dodgers have nearly 20,000 parking spaces available for playoff games.
* Parking Costs: Parking prices soared on the secondary market, averaging between $70 and $90 per vehicle, or roughly $80.
* Potential Parking Revenue: Assuming 90% capacity of paying customers,this could have generated $1.44 million.
* Frank McCourt‘s Stake: However, former Dodgers owner Frank McCourt retains a 50% interest in the parking lots.
* net Parking Revenue Loss: This cuts the potential parking revenue in half, resulting in a loss of approximately $720,000.
The Bigger Picture: A Loss, Though Not a Crisis
Ultimately, the Dodgers lost nearly $23 million in potential revenue because of that single game in August. While this is a considerable sum, it’s important to put it into outlook. The Dodgers boast a $350 million payroll, have recently secured back-to-back World Series titles, and are valued at $6.9 billion by Forbes.
Thus, this loss won’t cause financial hardship. Though, it serves as a compelling illustration of how crucial every game is, and how even seemingly small outcomes can have significant financial consequences for major league franchises. It highlights the intricate economic ecosystem surrounding professional sports and the substantial revenue generated by postseason play.
This situation underscores the importance of every regular season contest, not just for playoff contention, but for maximizing revenue potential and solidifying a team’s financial standing.
