Finances Study

CASE STUDY USING THE NEW YORK ISLANDERS

The New York Islanders Stadium Capacity is 16,297

When the Islanders sell out the stadium, they receive total revenues of
$888,187

They have seat prices of $46, $34 and $179

So, the question was, how do you know how much more revenue you can get by
raising prices
by $1 in each seat category to $47, $35 and $180?

The math problem is as follows:

Seat A = 50%
Seat B = 40%
Box Seats = 10%

or
50% x total stadium capacity of 16,297 = 8,148.50
40% x total stadium capacity of 16,297 = 6,518.80
10% x total stadium capacity of 16,297 = 1,629.70

8,148.50 x $46 = 374,831.00
6,518.80 x $34 = 221,639.20
1,629.70 x 179 = 291,716.30
Total = $888,186.50 or rounded up $888,187

To answer our question:

then multiply the seats per section by the price per seat category

8,148.50 x $47 = 382,979.50
6,518.80 x $35 = 228,158.00
1,629.70 x 180 = 293,346.00
Total = 904,483.50, or 16,296.50 per game for a $1 increase per seat
category

Although is sounds simple adding 1$ per seat, the question is, how much
revenue would you get if you raised only SEAT A by 1$. This is where the
example helps you understand the stadium capacity split.-

Submitted by Frank Autunnale