The Reinvention of the Luxury Suite in North America

The rationale of a suite owner has transitioned from feeling it was professionally strategic to invest in a suite to needing to justify the extravagance of the purchase. The sports industry must adjust to this change in mindset so that luxury suites remain viable in today's ever-changing and challenging economic landscape. Luxury suites are often thought to be a stand-alone market segment, but they also overlap other segments of the sports industry (eg sponsorships, marketing, sales and facility management). Total revenue from professional sports contributes a sizable piece of the US sports marketplace and annual gross revenues from suites represent an important revenue stream for professional teams.Contemporary literature predicts the current recession will impact sports more heavily than in previous times of economic hardship. Previously, corporate suite purchasers were wiling to sign long-term deals, pay a premium and expected little quantifiable return on investment. Today, some corporate suite owners do not event want their name on their suite door for fear that suite ownership will be misconstrued by clients as irresponsible fiscal management. Given this change, suite sales professionals could be left with unsold suites and difficulty in renewing existing contracts if they do not adapt and reinvent their strategies. This paper will expand the body of knowledge related to luxury suite sales and management and introduce new ways in which professional teams and buyers of suites can take a proactive approach towards leveraging suite ownership. Luxury suite ownership is no longer a passive investment. Therefore, teams and suite owners should work together to ensure the value of the suite is maximized and ownership goals are realized