Cashing In On Sports
Penthouse Survival
By Guy Junker

I can hear him say it as if it were yesterday. 'We didn't come here to eat.' That was my father at Forbes Field. He wasn't mean, just a guy raising a family on a tight budget. I wonder what he would think today about sitting in a luxury box that costs well into six figures to lease? Where wine is served alongside carving stations for roast beef. Welcome to the amenities available for 21st century sports fans.

The luxury suites incorporated into all modern sports facilities are more than a means for businesses to entertain and impress clients at a ballgame. Those suites, in fact, are necessary for the survival of nearly all teams. 'They are a must,' says Tony Quatrini, Steelers' Director of Marketing.

Don't forget that when the Steelers and Pirates waged their campaigns to get new stadiums built, both pointed to the need for more and better luxury boxes, and the revenue that goes along with them, as a necessary part of staying competitive. It's a big part of the reason why the Penguins need a new building.

The Steelers have used the increased revenue to spend a record amount on salaries and bonuses. They haven't lost a significant free agent since they moved into Heinz Field.

The Pirates also spent a team record on salaries two years ago, but they haven't reaped the benefits in the standings. But without the increase in cash, they might be the ones moving to Washington, D.C., instead of the Expos.

The Penguins built luxury boxes years ago and they were much nicer than the ones at Three Rivers Stadium. But they had to be added to an existing structure, near the roof, and now pale in comparison with the new ones at PNC and Heinz.

Patty Paytas, Vice President of Communications for the Pirates, likes how the ones at PNC Park fit in architecturally. 'They are tucked in under the upper level and blend in nicely.'

And they are 40 feet closer to the action, and twice as big as the ones at Three Rivers. Something similar is on the Penguins wish list if and when they get a new building of their own. If they don't, they probably can't survive.

Professional teams aren't the only ones relying on the money from luxury boxes. The 127 at Heinz Field are leased to Pitt and the Steelers together as a package. According to Mike Pratapas, Pitt's Associate Senior Athletic Director, a portion of the Heinz Field suite money goes to the Panther Club Athletic Scholarship Fund. 'We've already raised over 10 percent more than we did last year,' Pratapas says.

The new Petersen Events Center has the very unique courtside suites. Some of that revenue goes against the bottom line of running the athletic department. Pratapas emphasizes that different schools use the revenue in different ways.

What fans get in return for these suites is a chance to watch a game in surroundings as comfortable as their own living room. Luxury boxes come complete with televisions, sinks, and closets. Many have their own bathrooms. At PNC Park, you get complimentary scorecards and On Deck magazines. At Heinz Field, you can have wine or liquor not available in the rest of the stadium. At Beaver Stadium, you can control the audio in each box to listen to the radio broadcast, the TV broadcast, or just the crowd noise. Food ranges from the simple, such as nachos and hotdogs, to roast beef and shrimp. And there is the famous dessert cart at PNC Park. It all depends on how much you want to spend.

How popular are these luxury suites? There is a waiting list to lease most all of them. At PNC Park they were sold out by the spring of 1999, a full two years before the place even opened. The ones at Heinz Field are all sold. Same for Beaver Stadium, where the leases run five, seven, or ten years. The Penguins are the only ones to rent some of their luxury boxes on a per-game or game-package basis. They do what they have to do to compete, considering the age of Mellon Arena.

The luxury suites make up such a small percentage of the total seats available in any given building, but such a large part of the revenue needed by teams to exist. It appears as if they are here to stay. Sorry Dad, nowadays fans often do come to eat.

Guy Junker covers sports business for Pittsburgh Sports Report.