The Untold Math Behind $1 Pretzels and $5 Beers
Sports teams are dropping concession prices by 50%. But team owners aren't just doing this to enhance the fan experience. The math also makes financial sense.
At the average NFL stadium, $10 might get you a beer. At Mercedes-Benz Stadium in Atlanta, you can get five hot dogs for the same price. Or maybe you want nachos, a pretzel, and a beer. It doesn’t matter if you’re attending an NFL regular-season game, the CFP National Championship, or the Super Bowl — prices always remain the same.
This was all part of Arthur Blank’s vision when he opened the Falcons’ new $2 billion stadium in 2017. Two hours east of Atlanta, Augusta National Golf Club had become famous for its cheap concession prices at the Masters. But rather than writing that strategy off as an anomaly in the sports world, Blank dared to be different. Now, nearly a dozen other sports owners have copied the same model they once laughed at.
The Atlanta Hawks, Utah Jazz, Phoenix Suns, Baltimore Orioles, Baltimore Ravens, and San Antonio Spurs have all introduced fan-friendly concession menus featuring items priced from $1 to $5. Coastal Carolina University even took it a step further, offering fans an unlimited number of free concession items at home games this year.
But the truth is, many owners initially thought Blank was crazy for introducing this “fan first” pricing menu. Teams make the majority of their revenue from media rights and ticket sales. However, concessions still generate approximately $2 million per game for an NFL team. But that’s the magic behind this phenomenon. Arthur Blank created a system that improved the fan experience and also the team’s balance sheet.