Red Claws report strong sales for first year
Photo/Robert M. Cook
William Ryan Jr., left, and Jon Jennings, two of the Red Claws' 15 owners
The Boston Celtics may have come up short in their quest for an 18th NBA championship, but the Maine Red Claws, the Celtics' NBA Development League affiliate, had a banner first year.
Jon Jennings, president and general manager of the Red Claws, and Chairman William Ryan Jr., two of the Red Claws' 15-member ownership group, say the team excelled in nearly every aspect of its business model, including selling out all 24 home games, which attracted more than 73,000 fans to the Portland Expo.
The team also finished the year with a winning record of 27-23.
"We wanted to create great demand and limited supply for our product," says Jennings, a former assistant coach with the Celtics during the Larry Bird era in the 1980s. "If you don't sell tickets, you won't sell sponsorships."
Sold-out games at the 3,000-seat expo allow the Red Claws to attract more sponsors and advertisers, says Ryan, who owns the Oxford Plains Speedway. The team attracted more than 70 sponsors during its first season and 1,500 season-ticket holders.
The decision to lease the expo from the city of Portland on a per-game basis during its first season and for the next four years was deliberate, says Jennings. The team has no plans to relocate to another facility like the Cumberland County Civic Center anytime soon.
Like the Portland Sea Dogs and the Portland Pirates, Jennings says the Red Claws offer a affordable way for people to watch professional sports when compared to the more expensive ticket prices charged by teams like the Boston Red Sox and the Celtics.
"A family of four could come to one of our games for $20. You can't park in Boston for that," Jennings says. "We're not raising ticket prices for the coming season," hoping to increase the number of season-ticket holders.
Jennings says the team put a premium on creating as much brand recognition as it could to increase ticket sales and sponsorship. The team's signature logo, its mascot, Crusher, and the link to Maine lobster have generated a lot of out-of-state merchandise sales. The team has also participated in several community fundraisers, recently spearheading a partnership with The Portland Press Herald, Quirk Chevrolet and Wright Express to raise money for the city's Fourth of July fireworks celebration after it was eliminated from the municipal budget.
Ryan says that he, his father, William Ryan Sr., a retired TD Bank president, and several other members of the ownership group invested more than $2 million to launch the franchise before the Red Claws' inaugural 2009/2010 season. He says the team invested more than $400,000 in the expo, improvements that benefit the city's high school teams and others who use the space. One of the most noticeable is the Red Claws sign on Park Avenue used to promote events year-round. The team employs five full-time staff in its Congress Street offices near city hall and more than 50 part-time people on game nights.
Like other first-year businesses, Ryan hoped the team would break even. "We did much better than we could have imagined," he says.
Neither Ryan nor Jennings would disclose the Red Claws' total ticket revenue, concession and merchandise sales, but both maintain the team exceeded projections and set some NBA Development League records for a first-year franchise.
Ryan pointed out this is no small feat when one considers the costs of running a basketball team that plays in a national league. He says transportation costs, which include flying the team to cities around the United States for away games, is one of the highest expenses. The D-league pays the players' salaries and the Red Claws' payroll compensates everyone else.
Jennings says the Red Claws can continue to grow its business if it pushes ticket sales and attracts more sponsors. "This is a small business where we happen to be in the business of basketball," he says.
Most Recent
Most Recent
Comments