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Good Business Practice of the Day?, AFL edition

November 5, 2007

This is either genius or incredibly stupid; I don’t know enough about the AFL to decide:

How confident are the Arizona Rattlers that they’ll make the playoffs in 2008? They are offering a money-back guarantee to their season-ticket holders: A trip to the playoffs or a full refund, no strings attached.

The article says they were not very good last year (4-12) but they have a new coaching staff that they believe will turn things around for the team.

I wonder how many people have seasons tickets and what this will cost them? They are getting some good publicity out of it, and will probably get a lot of the people who were considering seasons tickets to buy them. But will that translate into more wins? It almost creates an incentive for their fans to root against them, which is never a good thing.

My guess is more people buying seasons tickets means more fans in the stadium who are going to pay for parking, beer, food, and souvenirs. Increased attendance also means they can charge higher rates for in-stadium advertising. The Rattlers front office is probably betting these costs will offset the expected value of any ticket reimbursements.

I wonder if there is an insurance company that will insure them against a massive payment like that?

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