What do professional sports teams and Taylor Swift have in common aside from ties to Kansas City Chiefs tight end Travis Kelce? The financial impact of The Eras Tour. This past weekend Taylor Swift wrapped her 18-month, 152-show Eras Tour which brought in over $2 billion in gross revenue, making it the highest grossing concert […]
What do professional sports teams and Taylor Swift have in common aside from ties to Kansas City Chiefs tight end Travis Kelce? The financial impact of The Eras Tour. This past weekend Taylor Swift wrapped her 18-month, 152-show Eras Tour which brought in over $2 billion in gross revenue, making it the highest grossing concert tour in history. Not only is the billionaire pop star benefitting from these earnings, but some sports teams are also profiting from it as well.
On this week’s episode of Yahoo Finance Sports Report, host Joe Pompliano talks about Taylor Swift’s Eras Tour and how stadiums were financially impacted by these concerts.
There are currently a dozen stadiums owned by sports teams that hosted the Eras Tour. These stadiums include Hard Rock Stadium in Miami, MetLife Stadium in New York, Gillette Stadium in Foxborough, Mass. to name a few. “The reason for [their financial benefit] is simple,” Pompliano says. “If you look at [Swift’s] average concert, it produces about $10 million in ticket sales. She has a bunch of expenses though and the biggest [expense] is actually renting out the venue itself. That costs about $2-3 million per show, which the stadium venue gets to keep. Then these venues get to keep an additional million or so in other things like concessions, merchandise, parking, et cetera.”
Some of these stadiums hosted multiple nights of the concert too, so their revenue multiplied.
“This is why owning your own venue as a professional sports team is so important,” Pompliano says. “You can fill that venue on nights when you don’t have games with things like concerts… This is a huge financial benefit for some of these teams, and it’s why some of these professional organizations now look less like sports teams and more like real estate companies.”
To hear more, check out this week’s episode of Yahoo Finance Sports report here.
Yahoo Finance Sports Report with Joe Pompliano, a vodcast brought to you by Yahoo Finance and Yahoo Sports, looks beyond the latest sports business headlines, analyzes all the need-to-know news – the teams, trades, and billion dollar deals – so you and your portfolio will win BIG.
Yahoo Finance Sports Report is developed and produced by Lauren Pokedoff.
