The business of sports
Posted on January 23, 2008
Filed Under Uncategorized
Sports is going to get preeeety expensive to the fans who come to watch the game very very soon!
How! Imagine shelling out a hefty five bucks per hot dog? Buying peanuts and cracker jacks at the local vendor will cost you as much as going to the restaurant for dinner. Sounds funny right!But check out the business of sports and sports concessions.
Professional baseball players have always complained that the food and drink inside the stadium has been at a premium.And the prices are going to increase!
The major stadium food concession expert, Aramark successfully negotiated a 10-year partnership with the Pittsburgh Penguins, who have a new stadium opening in 2010. Aramark has also secured a 30-year contract with the New York Mets last June for Citifield, which opens in April 2009. Aramark now controls over 40 professional sports clients. But is that making the stadium food any cheaper ?
Capital investment burdens, product and labor costs, tax and commissions,the weather, opponents, team strength, crowd size, time and length of game can all cut into the concessions profits forcing them to hike prices to make a decent profit.
And with stadium maintenance charges, parking fees, as well as players fees increasing exponentially , you could see a drastic jump in the price of your hot dog!
