Indians score hefty profits

December 15, 2008
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indiansIn good times and bad, the Indianapolis Indians continue to be a hit with local sports fans. The Indians scored a $1.23 million profit this year on $8.7 million in revenue, according to the publicly traded company’s most recent financial disclosure. That compares to a profit of $1.27 million on revenue of $8.22 million in 2007.

Revenue gains were offset by slight increases in expenses, with the most notable a $320,000 bump in advertising and promotion to $1.7 million. Grounds operation expenses were up slightly to $3.52 million and general and administrative expenses bumped up to $1.35 million.

As a result, Indians stockholders will get a dividend of $350 per share. That’s the same as last year, but up from $200 per share in 2006. The team is offering to buy back shares of stock currently for $21,328 per share. The stock, which is listed in the Pink Sheets, has traded for as high as $25,000 in the past year. Some stockholders believe the thinly traded stock is worth more than $30,000 per share. If you want to get in on the action, you might be a little hard pressed. There are only 774 shares outstanding. At $25,000 per share, that would value the team at $19.4 million.

There’s a reason why Indians stock is so valuable. It’s one of a dwindling number of sports properties that makes any money in Indianapolis. And it’s easily the most consistent.

Even in a year when the economy was less than stellar, the Indians saw increases in ticket revenue, concession sales and advertising income. Signboard advertising increased almost $100,000 from 2007, hitting $592,850. Promotional advertising revenue was up more than $130,000 to $858,827 and advertising in the team’s game-day souvenir program also was up. This shows that corporate Indiana understands the value of reaching this predictably solid audience.

This year the Indians drew 606,155, the team’s highest attendance mark since 2000. That put the team’s average attendance at 8,538 per game. If the economy continues to stagger, sports marketers think sports fans looking for relatively inexpensive entertainment options, could push the Indians attendance higher next season.
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  • This is great news for the average sports fan that can't afford to spend $100-$200 per game for a family outing to a sporting event. A spot on the lawn with the kids and a picnic basket is still the best value in town. I agree that the Indians will likely see another year of record crowds. People won't stop spending money, just spending it more wisely. And an Indians game is a bargain in my book!
  • I echo Boomer's sentiments. For a family of four on a budget there are few better ways to spend an evening in the summer than on the law at the Vic.

    As Harry Carray used to say You can't beat fun at the old ballpark.
  • Who does the Indians marketing? It's nice to see they convinced the Tribe to pony up some money for marketing - it definitely paid off this season.
  • It's my understanding that locally based Hirons & Co. handles advertising/marketing for the Indians.
  • As an HR Manager I convinced our president to purchase season tickets last year and it was a big hit among employees and clients. Even though the economy has somewhat impacted us, we have already renewed for 2009 since their prices are so low. We are proud to back the Indians.
  • Here's a web address that should appear hyperlinked in the blog: http://www.ibj.com, and here's www.ibj.com

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  1. The deductible is entirely paid by the POWER account. No one ever has to contribute more than $25/month into the POWER account and it is often less. The only cost not paid out of the POWER account is the ER copay ($8-25) for non-emergent use of the ER. And under HIP 2.0, if a member calls the toll-free, 24 hour nurse line, and the nurse tells them to go to the ER, the copay is waived. It's also waived if the member is admitted to the hospital. Honestly, although it is certainly not "free" - I think Indiana has created a decent plan for the currently uninsured. Also consider that if a member obtains preventive care, she can lower her monthly contribution for the next year. Non-profits may pay up to 75% of the contribution on behalf of the member, and the member's employer may pay up to 50% of the contribution.

  2. I wonder if the governor could multi-task and talk to CMS about helping Indiana get our state based exchange going so Hoosiers don't lose subsidy if the court decision holds. One option I've seen is for states to contract with healthcare.gov. Or maybe Indiana isn't really interested in healthcare insurance coverage for Hoosiers.

  3. So, how much did either of YOU contribute? HGH Thank you Mr. Ozdemir for your investments in this city and your contribution to the arts.

  4. So heres brilliant planning for you...build a $30 M sports complex with tax dollars, yet send all the hotel tax revenue to Carmel and Fishers. Westfield will unlikely never see a payback but the hotel "centers" of Carmel and Fishers will get rich. Lousy strategy Andy Cook!

  5. AlanB, this is how it works...A corporate welfare queen makes a tiny contribution to the arts and gets tons of positive media from outlets like the IBJ. In turn, they are more easily to get their 10s of millions of dollars of corporate welfare (ironically from the same people who are against welfare for humans).

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