The Big Idea

Going Bananas

The Savannah Bananas are social media darlings for their uniquely entertaining style of baseball. But behind that happy-go-lucky public persona lies a set of core business principles that all sports teams can learn from.

The Savannah Bananas have a waitlist for season tickets, are expanding the number of teams in their franchise, and have added youth camps to their range of events. They’ve been compared to the Harlem Globetrotters, WWE, and the Barnum & Bailey Circus. They’re all these things and none of them. They have no celebrity stars, and the outcomes of the games are not predetermined. They have devised a unique formula that combines nostalgia for the great American pastime with the attention span of the digital age. There are lessons to be learned from their success for every team. Three characteristics stand out:

Fan-First Mentality

Founder Jesse Cole’s guiding mantra is captured in their company name: Fan First Entertainment. This philosophy plays out on two levels. On the first level, it means they’re constantly trying to improve the fan experience. The famous rules around “Banana Ball” are meant to make attending a game more fun. Events and entertainment are designed to engage fans from two hours before game time until the last out.

On a deeper level, their primary business objective is to create more fans. They believe that if they put fan growth first, the revenues will follow. They look at everything from their viral social media presence to their in-game attractions through the lens of fan creation. It’s interesting to contrast the Bananas’ in-game experience to an MLB game, where the fans seem to serve mostly as a backdrop to the TV coverage, offering food and mildly entertaining distractions to fill the numerous commercial breaks.

Business Innovation

The Banana Ball rules show innovation on the field, but the Bananas are business innovators as well. They are constantly pushing for new ideas. They start with small tests and expand on what works. They hit a plateau in their initial success after they began selling out every home game. They figured the only way to elevate to the next level was to tap into fans outside Savannah. So, they tested the idea of hosting their games at other venues. In 2021, they started with the “One City World Tour” in Mobile to see if they could attract fans outside their hometown. By 2025, they plan to host Banana games in 40 cities across the US.

They’ve also innovated around pricing. Most teams see food concessions as a major stand-alone revenue stream. The Bananas have adopted an all-inclusive ticket that includes admission and all-you-can-eat food. Alcohol and specialty items can be purchased separately, but hamburgers, hot dogs, and soft drinks are included in the ticket price. They found that by creating an affordable, family-friendly price, they increased merchandise sales.

Operational Rigor

It may seem like their culture is just a celebration of fun-loving irreverence. However, the organization operates its business with rigorous precision. CFO Tim Naddy helps fund the all-inclusive tickets and other offerings through careful cost containment. They manage their merchandise supply chain and on-the-road logistics with a close eye on driving efficiencies. The litmus test they apply to evaluating the constant flow of new ideas is to measure its effect on average fan spending per game (per cap). In their view, a happy fan is one who wants to wear their team shirt, have a player sign a team ball cap, or take home something to remember their experience by.

Conclusion

Many college and pro teams assume their fan base is entirely dependent on their team's record. The Savannah Bananas show there are more ways to win fans than to win more games.

Nerding Out

The Economics of Stadium Ownership: Private, Public, and Mixed Models

Stadiums are more than just venues for sports and entertainment; they are significant economic engines that shape the financial landscape of cities and regions. The ownership and funding models of stadiums, whether private, public, or mixed, play a crucial role in determining their economic impact, operational efficiency, and long-term sustainability. Despite advancements in construction, the average stadium lasts only about 30 years, and by 2030, more than 55 major stadiums across North America will surpass that mark.

Private Stadiums

Notable Example: Sofi Stadium, Inglewood, California

Privately owned stadiums are funded and operated by individuals, corporations, or sports teams without taxpayer support. This model is often praised for its efficiency and alignment with market demands. However, only 15 of the 124 Big 4 North American sports teams have refrained from using public funds in their initial construction or renovation, with most of these being recent builds.

Advantages
Private stadiums ensure financial responsibility, as owners bear the full cost of construction, maintenance, and operations. This prevents public funds from being diverted from essential services like education or infrastructure. These stadiums often feature cutting-edge technology and amenities, such as luxury suites and premium seating, to attract fans. Private owners also explore diverse revenue streams, including sponsorships, naming rights, and non-sporting events like concerts.

Challenges
The financial burden of building and maintaining a stadium can be overwhelming, especially for smaller teams. Additionally, the focus on profit may prioritize high-income fans over broader community access, limiting public benefit.

Public Stadiums

Notable Example: Lambeau Field, Green Bay, Wisconsin 

Publicly owned stadiums are funded primarily through taxpayer dollars and managed by government entities. They are designed to serve the broader community and stimulate local economies.

Advantages
Public stadiums are often more affordable for local residents, making them accessible to a wider demographic. Unlike private stadiums, which prioritize quick returns through high ticket prices, public stadiums lack the same urgency to maximize profits. They can also drive economic development by attracting businesses, tourists, and new residents.

Challenges
If the stadium fails to generate the expected revenue, taxpayers may be left covering substantial debts. Publicly managed stadiums can suffer from inefficiencies due to political interference and bureaucracy. Additionally, funds used for stadium construction could be diverted from critical services like schools or hospitals.

Mixed Stadiums

Notable Example: Mercedes-Benz Stadium, Atlanta, Georgia

Mixed-ownership stadiums combine private and public funding and management. This increasingly popular hybrid approach balances the efficiency of private enterprise with the public benefits of community investment.

Advantages
By splitting costs, the financial burden is reduced for both parties. This model balances profitability and community access, ensuring broader benefits. Creative financing solutions, like public-private partnerships (PPPs), attract additional investment and expertise.

Challenges
Coordinating between private and public entities can lead to lengthy negotiations. Accountability issues may arise, and if not managed carefully, benefits may disproportionately favor private stakeholders.

The Shift from Publicly Funded Stadiums to Mixed and Private Models

In recent years, there has been a noticeable shift away from publicly funded stadiums toward mixed and private ownership models. This trend reflects growing skepticism about the use of taxpayer money for stadium projects, as well as the desire for greater efficiency and innovation in stadium operations.

Why the Shift?

1. Taxpayer Resistance: Many communities have grown wary of using public funds for stadiums, especially when promised economic benefits—such as job creation and increased tourism—fail to materialize.

2. Private Investment: Wealthy team owners and corporations are increasingly willing to fund stadiums themselves, particularly when they can secure lucrative revenue streams like naming rights and sponsorships.

3. Hybrid Solutions: Mixed-ownership models, such as public-private partnerships (PPPs), have emerged as a compromise, allowing cities to share costs and risks while ensuring public benefits.

Implications of the Shift
While the move toward private and mixed models can reduce the financial burden on taxpayers, it also raises concerns. Private stadiums may prioritize profit over public access, potentially excluding lower-income fans. Mixed models, while promising, require careful oversight to ensure that public benefits are not overshadowed by private interests.

Conclusion: Finding the Right Balance

The choice between private, public, and mixed stadium ownership models depends on the specific goals and circumstances of the community and stakeholders. Private stadiums offer efficiency and innovation but may lack public access. Public stadiums prioritize community benefits but carry financial risks for taxpayers. Mixed models aim to strike a balance but require careful planning.

As cities and teams continue to invest in stadiums, the key to success lies in aligning ownership structures with the needs and priorities of the communities they serve. By doing so, stadiums can become more than just venues—they can be engines of growth, unity, and shared prosperity.

By The Numbers

Numbers That Jumped Off the Page

38%- Apple and Major League Soccer have announced encouraging viewership growth for the second season of their streaming partnership, with subscriptions up 38% year-over-year. Is it improved interest and production value or just the Lionel Messi effect?

63%- The NCAA Women's Basketball Tournament has seen sponsorship revenue jump 63% year-over-year, with brands rushing to capitalize on the surging popularity of women's college basketball. Viewership expectations are at an all-time high following Caitlin Clark's record-breaking season.

$1.3 Billion- March Madness is poised to break advertising records this year with projected revenue of $1.3 billion across CBS, TBS, TNT, and truTV. Advertisers are paying upwards of $2.5 million for 30-second spots during the Final Four, with digital streaming options commanding premium rates as viewership shifts to multiple platforms.

$126 Billion- The NFL has finalized its new 11-year media rights agreements worth a staggering $126 billion, representing a 75% increase over previous contracts. Amazon Prime Video, ESPN/ABC, NBC, CBS, and Fox will all maintain broadcast rights, with streaming platforms gaining more prominence. One industry analyst called it "the mother of all sports media deals."

Pulse Check

Last week, we asked Beyond the Sideline readers, “Which of the Big 4 North American leagues does the worst job in their promotions?” Here’s what they thought.

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