Fan Lifetime Value

The relationship between teams’ brands and fans is an economically valuable relationship. Fans engage in behaviors like buying tickets, purchasing team-branded apparel, watching games on television, following teams on social media, and other activities that directly and indirectly add to team revenues. Fan relationships should be monitored and managed from the perspective that fans are assets whose long-term value should be optimized. This chapter discusses the concept of fan valuation using the concepts of customer lifetime value (CLV) and customer equity. We refer to the long-term value of fans as Fan Lifetime Value.