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Baseball and Business

Spring Training Blends Tourism,
Business for Merchants Across Town

Reprinted From:
Inside Tucson Business
March 10, 2005
By David Woodburn

Michael Malo, Jonathan Walker and Michael Bolchalk may or may not know each other, but they each can see the value of the annual professional baseball migration to Arizona that is spring training.

It is the opportunity for tourists to visit the various cities that host spring training baseball—and the assorted attractions as part of a vacation—but it can also be an opportunity for some business to be consummated.

Malo, Arizona Diamondbacks' senior director of marketing, said that spring training can be a great way to secure some business relationships that last beyond the board room. "I know that Verizon Wireless, one of our corporate partners, uses spring training tickets as part of an acquisition program and it brings clients to games pretty regularly," he said. "Our partners just buy spring training tickets as a sports-marketing tool. And we (Diamondbacks) are bringing a busload of our partners to a game on the 10th (March). We see it as an opportunity to get our partners excited about baseball."

While there is much discussion about the impact of spring training on the local economy directly (an estimated $20 million this year), the impact can be felt in the business community in other ways as well.

"I think it's a great way to spend a day," said Roger Yohem, vice president of the Southern Arizona Home Builders Association. "It's a very informal atmosphere to do business. I know of people who bring clients to games and they use those games as key tools to establishing good professional relationships."

Walker, president and chief executive officer of the Metropolitan Tucson Convention and Visitors Bureau, agrees. "(Spring training) is a monthlong event that creates many opportunities for one-on-one relationships and that's very important."

Bolchalk, of Michael Bolchalk Marketing, is a big proponent of spring training as a business tool. He said he tries to get to about 10 games each spring, and treats about half of them as business opportunities. "I often take clients to spring training games," he said. "I see it as a great opportunity to mix socialization, business relationships and baseball. There's nothing better. It puts things on a more personal, social level, and I think it's an excellent opportunity to get to know somebody on a more personal level. And I think that's always good for business."

Malo concurs. "(Baseball is) a social atmosphere, and anytime you're in a social setting it's about establishing a relationship," he said. "Business is about relationships, so these kinds of events only help in the long run."

An economic home run?

A 2003 study about spring training stated that the three teams in Tucson—the Diamondbacks, the Chicago White Sox and Colorado Rockies—which account for 25 percent of all the spring training teams in Arizona, marked an estimated economic impact of about $17.8 million, or about 9 percent of the total impact on the state ($201.7 million). Seven of the top eight teams in terms of attendance in 2003 are located in Phoenix. Of the Tucson-based teams, only the Diamondbacks (101,768 fans, third-most) were among the leaders. The White Sox and Rockies had two of the four lowest attendance figures (72,863 and 65,310 respectively), with only the Milwaukee Brewers (60,571) and Kansas City Royals (50,070) drawing fewer fans. In 2004, the 12 teams averaged 100,000 fans after averaging about 83,000 a year earlier. Fans were spending an average of $210 per day while in the state.

"Spring training drew 1.2 million fans last year and resulted in about $200 million in economic impact to the state," said Tom Moulton of the Pima County Department of Economic Development and Tourism. "The trend has been shorter vacations since Sept. 11 but we're looking to keep people here longer so they can spend more money. But we do see a lot of renewed excitement surrounding spring training this year. We're really reaching out to those who come for spring training and trying to sell them on other things they can see and do while they're here to enhance our economic impact."

In the 2003 study by FMR Associates, 76 percent of visitors to Arizona during March 2003 claimed spring training as their primary or major reason for visiting the state. "A great deal of our advertising happens during this time of year, showing people the appeal of coming here for spring training and for our wonderful weather," said Jacki Mieler of the Arizona Office of Tourism. "Some places in the country have had very bad winters, so we think this is a great opportunity for us to reach out to them who want a place to get away for a few days.

"We think we have a great advantage having spring training in Arizona," Mieler said. "All of our stadiums are close together, so a fan can follow his or her team all over the state and not have a very long drive —maybe a couple hours at the most. Our office helps as much as we can on Cactus League marketing but we also do a great deal of advertising to several target cities that have teams here, like Chicago, Denver and Seattle."

David Woodburn may be contacted at dwoodburn@azbiz.com or (520) 295-4239.

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