Tuesday, March 13, 2012
What is Peyton Manning worth to a team?
By Paul Kuharsky
What’s Peyton Manning worth?
Not contract-wise, but to a team. He’d create an immense buzz in Nashville and Tennessee, and the Titans might max out in popularity. Certainly that is of great value.
But for a team that sells all its tickets, what kind of dollars will it translate to? The people will actually be in all those seats from kick to horn, and that will improve game-day parking, concessions, etc.
A lot of fans are talking about how the Titans would rake it in on jersey sales. But they only get a full share of the profits from jerseys sold at their team-run pro shop and through their website. Every jersey sold elsewhere gets put into the big pool that gets split up around the league.
Kristi Dosh, who covers sports business for ESPN.com, said there is a split opinion among those who monitor such things as to what sort of financial influence a superstar can bring a team.
“The experts I’ve spoken with have had a mixed reaction,” she said. “Some have said while it adds buzz and can re-energize the fan base, there aren’t tangible financial rewards if he goes to a team who already sells out its stadium. Basically, he helps maintain the status quo in those cities. While important, that doesn’t necessarily increase revenue.
“However, Lou Imbriano, former chief marketing officer of the New England Patriots, tells me a team who markets Peyton correctly could see as much as an eight-figure bump. Adding a player like Peyton would increase demand, making tickets more valuable even if they’re already sold out. Ticket prices could be increased or more expensive packages could be created for the upper echelon of fans. It could also cause an increase in the season-ticket waiting list. Imbriano says when he was at the Patriots the waiting list was 60,000 and each had paid a $100 deposit. Not only do you increase demand, but that demand allows you to market the team to sponsors differently and can increase revenue from those sources. In addition, you can market to those on the waiting list for non-game events.”
The Titans' waiting list spots don’t cost money, so there isn’t money to be made there.
If Manning came to Nashville, the Titans would be expecting to make several charges into the playoffs and win at least one Super Bowl. Winning a Super Bowl makes a team more valuable.
I don’t know what that number would be, but it's not a small one.