November 4, 2010

Even though the Texas Rangers were unable to win the 2010 World Series, they were able to benefit from their deep playoff run.

According to Arlington Mayor, Robert Cluck, each sellout playoff game held at the Rangers Ballpark in Arlington brought $1.25 million in overall economic benefit to the city of Arlington.  Those six games totaled $7.5 million in total economic impact for the city.

The Rangers did not enjoy the same measure of success during the regular season.  Rangers Ballpark at Arlington holds 52,419 (including standing room).  The Rangers averaged under 31,000 during the regular season, ranking them 14th out of 30 teams in 2010 attendance.

$7.5 million for the city in economic benefit means that the Rangers themselves must have ranked in the money during the post season, right?

Not necessarily.

“Because ticket pricing is much greater than during regular season, I’m sure the public perception is that it’s got to be huge profits for the club…And it’s just not.”
— Kellie Fischer, Texas Rangers CFO

Citing shared revenue with players and umpires, and higher post season costs — increased security, decorations and hospitality giveaways, among others — the increased revenue is not always enough to balance or even exceed the expenses.

“It’s possible we don’t even make money potentially,” she said (via Dallas News)

So, where does the revenue come from, if anywhere?  According to Fischer and Mayor Cluck, the real benefit comes in the next baseball season.

“Everywhere I went, people have been pumped up … this was the first time in history the Texas Rangers were in the series,” Cluck said.

The pent-up demand for front-row seats will spill into next year’s season, he said, adding, “The feeling in town will not go away quickly.” (via Phoenix Biz Journal)

The Texas Rangers will begin their America League champion defense in the spring of 2011.

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