--- title: Why sports teams are selling subscriptions - The Hustle description: Franchises are turning to monthly subscriptions to generate revenue. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/861835378-HS-News-Brief_2022-09-21T215843.384Z.webp --- # Why sports teams are selling subscriptions ![Samir Javer](https://53.fs1.hubspotusercontent-na1.net/hubfs/53/assets/hubspot.com/web-team/WBZ/HubSpot%20Media/Blog%202021/Images/Nav/Optimized/TheHustle_Icon_Dark.svg) [Samir Javer](https://hs-sbup.thehustle.co/author/samir-javer) [Samir Javer Twitter profile ](https://twitter.com/samir_javer) Published: September 22, 2022 Updated: October 11, 2023 VCs salivate when they hear “monthly recurring revenue,” but it no longer applies to just tech companies. ![Why sports teams are selling subscriptions](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/861835378-HS-News-Brief_2022-09-21T215843.384Z.webp?width=595&height=400&name=861835378-HS-News-Brief_2022-09-21T215843.384Z.webp) Sports teams, too, are now offering ticket subscriptions to generate predictable revenue. #### **How it works** Fans pay a monthly fee for a certain number of games, with seat location dependent on availability (so nosebleeds *are* a possibility). - The NHL’s Philadelphia Flyers’ $99 [Flyers Pass](https://twitter.com/NHLFlyers/status/1564704661277446152) gets fans tickets to four games per month. - The NBA’s Cleveland Cavaliers’ [unlimited passes](https://www.cleveland.com/entertainment/2019/10/cavs-introduce-ticket-subscription-plan-offering-unlimited-games-for-one-monthly-price.html) are $49 and $89/mo., depending on seat locations. The model targets casual or budget-conscious fans who don’t want to shell out thousands for season tickets. #### **Cash is king** A ~$25 Flyers Pass game sure is cheaper than the average standalone ticket, but the upfront revenue boosts cash flow — and cash flow can drive a franchise’s valuation. Plus, like movie theaters, sports teams make wild margins from concessions, merchandise, and parking. - For example, drinks have [90%+](https://www.sports-management-degrees.com/stadium/) margins, while popcorn brings home ~80%. By subsidizing tickets, teams could entice fans to splurge on [$8.50 nachos](https://thehustle.co/the-family-that-built-a-ballpark-nachos-monopoly/). 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