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June 30, 2023

Editor Note: Adam Grossman takes the controls on Friday mornings. You will find his latest Revenue Above Replacement column is below.We're going to take a long weekend. See you back here on Wednesday. Stay safe and enjoy the fireworks.

MLB’s Prior Investments in Tech Enabling Clubs to Capitalize on Rule Changes

Major League Baseball (MLB) reported that last

games were the league’s most well-attended Saturday slate in eight years. The games had an average attendance of 37,995, and eight matchups drew more than 40,000 fans.

The new high water mark is reflective of the league’s improvement at the gate this season. MLB is

projecting

a 6-8% increase in overall annual attendance, and 22 of the league’s 30 teams have reported a year-over-year increase to date.

Many baseball observers are attributing the rising attendance figures to league-level rule changes, including the implementation of a pitch clock that has substantially reduced game lengths.

The rule changes have almost certainly been a tailwind. But it would be shortsighted to view them as the only catalyst for MLB's growth at the gate.

It would be difficult for the MLB to predict a season-long increase if the uptick were based solely on rule changes. The novelty of them might wear off as the season drags on.

And if fans were not otherwise enjoying themselves at the stadium, many would not return–even with shorter games.

MLB is confident the attendance patterns are here to stay because its teams have made substantial investments in technologies designed to improve the fan experience in recent years. Those solutions have put the league in a position to capitalize on the renewed excitement surrounding the sport.

“Watching a game at an MLB ballpark is the flagship experience for any baseball fan,” Chris Marinak (chief operations and strategy officer, Major League Baseball) said. “Technology adds to that experience by reducing friction points and creating a stronger understanding of what our fans want when they come.” 

Satisfi Labs is among the tech providers the clubs have embraced. MLB initiated a partnership with the conversational AI platform in 2016 and led its

investment round

in 2019. 

The league originally envisioned Satisfi chatbots being helpful with standard fan inquiries (think: digital ticketing support, team and game information). It has evolved into so much more than that. Fans now use the Satisfi platform for in-chat ticket purchasing, real-time statistics, and its dynamic food and beverage finders.

"MLB has been integral in helping us develop our conversational AI platform and [to] revolutionize the fan experience," Don White (CEO, Satisfi Labs) said. "With the evolution of AI, fans expect more through chat, so we continue to push the boundaries of chat experiences and ultimately enhance how fans engage with the game they love."

MLB clubs have been quick to implement emerging technologies they are not invested in too.

Check-out free locations have become commonplace inside league venues. At least seven teams now offer them.

Companies like Amazon’s Just Walk Out and

Zippin

enable fans to purchase concessions without interacting with a cashier. Customers scan their credit card before entering, the merchandise selected for purchase is tracked by the companies’ proprietary technologies, and the fan leaves the check-out free zone without human interaction while their items are seamlessly charged to the card.

The less time fans are forced to wait in line, the more likely they are to buy products. But reducing wait times also enables fans to spend more time watching the game, which enhances their in-stadium experience.

Teams have also begun implementing augmented reality (AR) into game-day presentation.

Several clubs, including the Minnesota Twins and Kansas City Royals, are working with ARound, a Stagwell subsidiary, to deliver shared AR experiences at games. The Twins started using ARound's AR app during the 2022 season, empowering young fans to participate in interactive mobile games during breaks in action at Target Field.

MLB teams have been at the forefront of more “traditional” fan-tech trends too. The Tampa Bay Rays went cashless in 2019. By the start of the ‘21 season, all but four of the league’s clubs had followed.

Speed benefits aside, cashless transactions provide teams valuable information on consumer spending habits. Clubs are increasingly using these interactions to understand consumer buying habits and to send targeted promotions to fans (think: free coupon for a favorite food item).

Understanding what the fans wanted drove MLB to implement the rule changes that led to shortened game times in the first place. However, the league and its teams recognize the investments made in technology along the way were, and remain, critical to the growth strategy.

“[With] tools like the highly rated Ballpark App and our new partnership with SeatGeek, over 90% of our fans are now using digital products to attend games,” Marinak said. “This creates a foundation for our clubs to deliver an exceptional experience to fans, particularly as we continue to see increased fan interest from the new rule changes and the balanced schedule.”

About the Author: Adam Grossman is the Vice President of Business Insights & Analytics at Excel Sports Management. He works with companies, sports properties, media rights holders, athletes, agencies, and events to determine the value of their most important assets. Grossman is also a professor at Northwestern University Master’s In Sports Administration program and the co-author of The Sports Strategist: Developing Leaders for a High-Performance Industry. You can find him at [email protected].