As professional sports teams are looking for ways to hang on to season ticket dollars despite the lack of in-person events, the Detroit Pistons have turned to incentivizing their fans.
Through a promotion called “Pistons IPO: Initial Pistons Offering,” the team is offering a way to earn money back on 2020-21 season ticket deposits. In a partnership with Flagstar Bank, when fans deposit the full amount for season tickets, it will get transferred to an account that offers a 5% annual percentage yield.
For example, for a $990 deposit — the cheapest full-season ticket package available — a fan would earn about $17 in interest.
Once a fan selects a ticket package, the bank will contact them to create a certificate of deposit account — purchases must be worth a minimum of $500 for a ten-game, half-season or season-long package and be made between Sept. 2 and Oct. 31 to be eligible for the account.
Funds will accrue interest through Dec. 31, 2020. If fans are allowed to attend games next season, the Pistons will withdraw the deposit and the buyer keeps any accrued interest.
Flagstar Bank was already the team’s banking and mortgage partner and its jersey patch sponsor since 2017.
In an interview with CNBC, Chief Business Officer Mike Zavodsky said consumers are looking for “additional utility and value” in their entertainment purchases.
“That was the driver of this IPO,” Zavodsky said. “How do we provide additional value for our fans and ticket holders? In this instance, they can earn additional money or accrue additional funds that can be used later.”
Zavodsky added that the promotion would still be a positive deal for fans if when the 2020-21 season comes around they are still not allowed into arenas. If that happens, ticket holders will have a “variety” of options, including holding the funds in the account using it towards future tickets.