NFL, Ticketmaster Renew Partnership for at Least $200M

NFL, Ticketmaster Renew Partnership for at Least $200M

Below is a news summary by Hollie Brower, an Entertainment Management student at Missouri State University.

(from Sports Business Journal, April 2, 2012) The NFL has confirmed the renewal with Ticketmaster, their secondary ticketing sponsorship. The logistics on their new contract has not yet been established, except it will be for another five years and around 200 million dollars. A unanimous vote was reached last weekend in Palm Beach, Florida, at their annual meeting. Neil Glat, NFL Senior Vice President stated, “We are very happy with the growth or the business.” NFL officials believe the percentage held by Ticketmaster’s ticketing service has quadrupled since their contract first started in 2008. Ticketmaster is now at 20 percent of the market for NFL secondary tickets with StubHub in the lead. Glat continues, “All of our clubs are also on Ticketmaster for their primary tickets, so the ability to integrate primary and secondary we can just continue to build on.”

A new feature of this deal includes rivals no longer having the ability to advertise on NFL’s digital products, unless it is for specific non-football events. They previously were allowed to advertise NFL game tickets through NFL digital outlets. Fans who wish to buy tickets can go to Ticketmaster’s website or an individual club website. The new deal has allowed Ticketmaster to grow in the secondary NFL ticketing business, and it is working for the company as well.

TicketExchange still stands as the official secondary ticketing service, but fans have the ability to buy and sell tickets on any secondary site. The league and Ticketmaster will continue to promote through digital advertising and opportunities that arise within each stadium. When the contract initially started in 2008, nearly a dozen teams were not on board with TicketExchange. The new contract will now have all 32 teams with no hesitation. Teams originally received one million dollars per participating club, but now teams will begin to receive a bit more. Each team has the opportunity to earn more money by generating high volumes of business. If growth continues, a revenue-sharing system will activate between the league and Ticketmaster.