Long before deciding on concessions, building the team store, or sodding the infield grass, teams constructing new stadiums have an important decision to make: how many fans should the stadium hold?On the one hand, team executives want as many fans filling their ballpark and buying their concessions as possible. At the same time, there’s something to be said for scarcity and demand (and the horror of thousands of empty seats on TV) during the never-ending 162-game season.
How do teams reconcile the two?
CNBC’s Darren Rovell posed that very question to Larry Baer, COO of the San Francisco Giants. Baer said he thinks the number lies somewhere in the low 40,000s.
Not coincidentally, AT&T Park holds 41,915 people. It also uses dynamic pricing – which alters the cost of seats based on demand – to facilitate sales.
Check out the short video below for a good explanation of both principles.
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