Groupon has been chosen by the Phillies to help them sell tickets at half price, as a part of the strategy to bring in more spectators. The tickets, which cost just $8.50 each, are available for three of the team’s games scheduled in May.
Poor turnout of Phillies supporters
Just a few years after the team’s most successful run in Major League Baseball (MLB), the Phillies have found themselves struggling both on and off the field. They currently stand at 3-4 on the 2015 season, and have become just the eighth team in history to suffer a shutout in their first home and road game. Moreover, in light of their poor performance last season, and similar predictions for the ongoing one, the Phillies are witnessing a disappointing turnout of spectators for their games.
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For their game against Washington Nationals on Friday, the Phillies saw a record-low attendance of a meager 19,047. This is the lowest turnout ever for the Phillies. Before this, a turnout of 19,182 people for a game against Colorado Rockies in April of 2006 was reported to be the worst turnout for the team. However, the numbers of people showing up to watch Phillies increased for the games played on the weekend. On Saturday, 23,970 people turned up to watch the game, while on Sunday, the number increased to 30,094.
Considering the recent increase in attendance and the strategy concerning giving away tickets at half price on Groupon, the number of spectators that would like to watch the Fightin Phils battle in upcoming games is likely to rise.
Separately, Piper Jaffray analyst Gene Munster feels that Groupon in undervalued by at least $1 billion. The analyst believe that Groupon holds many significantly undervalued assets, which it could spin-off in the coming years.
“What is safe to say is that Groupon has several stealth assets that are generally under-appreciated by investors as far as overall value,” Munster told Bloomberg.
According to Munster, Groupon could free significant cash by selling South Korea-based Ticket Monster, its Breadcrumb division and Ideel, which the company acquired in 2014 for $43 million.