The Use of Simulation Technology in Sport Finance Courses: The Case of the Oakland A’s Baseball Business Simulator

Teaching a graduate level sport finance class can be quite complex. With a variety of concepts, such as pricing, budgeting, and public funding, to convey in a limited amount of time, new forms of pedagogy are necessary to assist instructors as this technologically-advanced generation enters into academia. Subsequently, technology has been created to apply basic concepts related to finance to the complexity of a professional sports organization. One such program is the Oakland A’s Baseball Business Simulator. Through interviews and “emotional recall” (Ellis, 2004), this evaluative case study seeks to determine the effectiveness of this technology within this environment.Business simulation; sports business; sport finance; web-based simulations; business of baseball; case study.

Simulation in Sport Finance

Simulations have long been used in business schools to give students experience making real-world decisions in a relatively low-risk environment. The OAKLAND A’S BASEBALL BUSINESS SIMULATOR takes a traditional business simulation and applies it to the sport industry where sales of tangible products are replaced by sales of an experience provided to fans. The simulator asks students to make decisions about prices for concessions, parking, and merchandise, player payroll expenses, funding for a new stadium, and more. Based on these inputs, the program provides detailed information about the state of the franchise after each simulated year, including attendance, winning percentage, revenues vs. expenses, revenue sharing, and stadium financing. The use of simulations such as this one enhances students’ organizational skills and students’ ability to think critically and imaginatively about the data while applying relevant knowledge and an appropriate strategy to achieve the best possible results. This is particularly important in the field of sport management where few, if any, other simulators exist that are specific to the field.baseball business; computer-based learning; simulation/gaming; stadium/facility financing; sport finance; sport management

Dynamic Ticket Pricing in Sport: An Agenda for Research and Practice

For decades, the airline and hotel industries have regularly changed prices to keep pace with fluctuating levels of consumer demand. This demand-based approach to pricing is referred to as revenue management. Meanwhile, the sport industry has traditionally underpriced tickets using a cost-based approach in order to maximize attendance and promote fan satisfaction. However, as operating costs have grown, sport organizations are now forced to reconsider these conservative pricing practices. Subsequently, in 2009, the San Francisco Giants were the first team to utilize dynamic pricing, which is a strategy that mirrors the revenue management approach. While data supporting or refuting the reported benefits of this approach in sport remains sparse, the current paper utilizes the research on revenue management to develop an agenda of considerations regarding the use of demand-based ticket pricing strategies in sport. The paper is designed to guide researchers as they begin to explore the strategy\u27s myriad of critical (and yet unexplored) issues. Additionally, practical implications of adopting this pricing strategy in sport are considered

Proceed to Checkout? The Impact of Time in Advanced Ticket Purchase Decisions

When purchasing tickets in advance, sports consumers are often faced with uncertainty. Most notably, in today\u27s real-time environment, it can be challenging for consumers to determine how ticket prices and seat availability will change over time. Guided by the generic advanced-booking decision model, the current study investigated the role of time, ticket source (primary or secondary market), and team identification in advanced ticket purchasing by exploring a consumer\u27s perceptions of ticket availability and finding a lower price. The results suggest the perceived likelihood of ticket availability and finding a lower priced ticket increased as the date of the game drew closer. Ticket source and team identification were also found to be statistically significant main effects factors, while ticket source significantly moderated consumer perceptions of finding a lower price over time. These outcomes both confirm and contradict various findings in the leisure literature and provide a strong foundation for future sport-related examinations

Developing a Pricing Strategy for the Los Angeles Dodgers

In 2011, the Los Angeles Dodgers Stadium averaged 36,236 fans per game, dropping from 43,979 in 2010 and 46,440 in 2009, an overall loss of about 10,000 fans per game in just two years. In 2011, The Dodgers\u27 attendance ranking fell from first to eleventh in Major League Baseball (MLB), which amounted to a loss of over 800,000 tickets sold per year, as well as the resulting revenue from concessions and parking. Despite the Dodgers\u27 long and storied history, ticket demand had been negatively influenced by inconsistent performance, mounting bad publicity surrounding owner Frank McCourt\u27s divorce, the beating of a San Francisco Giants fan on opening day at Dodger Stadium, and the threat of suspension or termination of the Dodgers by MLB commissioner Bud Selig if McCourt did not agree to sell the team. In 2009, the San Francisco Giants were the first MLB team to adopt dynamic ticket pricing, which adjusts prices in real time to match fluctuations in consumer demand

The Use of Simulation Technology in Sport Finance Courses: The Case of the Oakland A’s Baseball Business Simulator

Teaching a graduate level sport finance class can be quite complex. With a variety of concepts, such as pricing, budgeting, and public funding, to convey in a limited amount of time, new forms of pedagogy are necessary to assist instructors as this technologically-advanced generation enters into academia. Subsequently, technology has been created to apply basic concepts related to finance to the complexity of a professional sports organization. One such program is the Oakland A’s Baseball Business Simulator. Through interviews and “emotional recall” (Ellis, 2004), this evaluative case study seeks to determine the effectiveness of this technology within this environment

The Use of Simulation Technology in Sport Finance Courses: The Case of the Oakland A’s Baseball Business Simulator

Teaching a graduate level sport finance class can be quite complex. With a variety of concepts, such as pricing, budgeting, and public funding, to convey in a limited amount of time, new forms of pedagogy are necessary to assist instructors as this technologically-advanced generation enters into academia. Subsequently, technology has been created to apply basic concepts related to finance to the complexity of a professional sports organization. One such program is the Oakland A’s Baseball Business Simulator. Through interviews and “emotional recall” (Ellis, 2004), this evaluative case study seeks to determine the effectiveness of this technology within this environment

Simulation in Sport Finance

Simulations have long been used in business schools to give students experience making real-world decisions in a relatively low-risk environment. The OAKLAND A’S BASEBALL BUSINESS SIMULATOR takes a traditional business simulation and applies it to the sport industry where sales of tangible products are replaced by sales of an experience provided to fans. The simulator asks students to make decisions about prices for concessions, parking, and merchandise, player payroll expenses, funding for a new stadium, and more. Based on these inputs, the program provides detailed information about the state of the franchise after each simulated year, including attendance, winning percentage, revenues vs. expenses, revenue sharing, and stadium financing. The use of simulations such as this one enhances students’ organizational skills and students’ ability to think critically and imaginatively about the data while applying relevant knowledge and an appropriate strategy to achieve the best possible results. This is particularly important in the field of sport management where few, if any, other simulators exist that are specific to the field