Rich Gotham, the president of the Boston Celtics, joins CJ to discuss the business side of one of the world’s best basketball teams and most recognizable sports brands. He explains the evolution of the Celtics' business model over the last decade, how the team diversifies its revenue streams to mitigate its dependence on in-game income, how they grow the team’s revenue given the finite number of seats at each game, and the role that digital technology and sponsorships play in this. He talks about how the team's performance affects the revenue they generate and he sheds light on how the use of ticket sale data, dynamic pricing, and building a membership model contribute to the team’s financial success. He also clears up, once and for all, what really happened with Paul Pearson in the 2008 NBA finals!
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TIMESTAMPS:
(00:00) Preview and Intro
(01:45) Sponsor - NetSuite | Maxio
(04:37) The Evolution of the Boston Celtics’ Business Model
(06:31) Diversifying Revenue Streams
(10:08) Growing Revenue With a Finite Product
(12:31) The Impact of the Team's Performance on Revenue
(14:52) Adding a Jersey Logo and the Role of Sponsorship
(17:50) Sponsor - Leapfin | Mercury
(19:49) How Making the Playoffs Effects the Revenue Model
(23:03) Dynamic Pricing and How Ticket Prices Are Set
(25:14) The Role of Data in Ticket Sales
(28:57) Rich’s Epiphany About the Fans’ Values
(30:32) How This Functions as a Membership Model
(33:02) The Estimated Lifetime Value of a Fan
(36:24) Sports Teams That Rich Tries to Emulate
(40:39) Long-ass Lightning Round: Career Advice and Insights
(48:54) The Truth About Paul Pierce and the 2008 Final
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