Luxury Box - Commercial Aspects

Commercial Aspects

Luxury boxes are a significant source of revenue for most professional sports teams and stadium owners. Particularly in some North American professional sports leagues, luxury suite reveue does not have to be shared unlike gate receipts which are split with visiting teams, leading to teams demanding new stadiums that contain more luxury boxes. Many new additions to college football stadiums in the United States are built with luxury boxes, producing additional income for the schools.

Most luxury boxes are leased by contract on a yearly basis, though some are bought in a manner similar to that for a condominium. These methods usually grant access to the box by the leaseholder or owner for every event held at the venue. A few stadiums rent them on a per-event basis. Prices vary from US$5,000 up to the millions of dollars depending on the venue and events held there.

Luxury boxes that are rented on a single event basis can range from US$250 for low-key events to up to at least US$250,000 for high-end events such as sporting final matches. Also, the location of the box and how many people the box can hold usually makes up the price. Standing room tickets may also be purchased at an additional fee but are usually less money than an actual suite ticket. If a normal box ticket with a seat costs US$500 per ticket then standing room tickets might be around US$250–US$300 per ticket. These tickets will allow more people in a box, but they won't have seats and will have to stand in the box or sit in the lounge area.