[ggsimmonds]

Quote: Originally Posted by aholbert32

I would actually go where there are none. Lets go with your analogy: Lets say you own the biggest steakhouse in DC. Everyone likes your steakhouse . People in DC know that you have the best chefs and wait staff. They know you get the best cuts of beef. Why would I want to open up a rival steakhouse in DC with worse chefs, staff and food? All consumers will do is compare us to your steakhouse and complain about it not being as good. Add on top of that, there are 3-4 other restaurants (NBA, NHL and MLB) that offer great food when your steakhouse isnt open. I'd rather go to cities that dont have access to your steakhouse and its quality. Seems like a better business plan to me.

Aside from KG mentioning that his steakhouse would be closed, we know there is a market for steakhouses there. You would be providing a cheaper alternative. Yes, his steakhouse is better, but you gotta pay $100 for a steak. You are offering steak for $40.

I think the smart move is play in big cities, but have smaller town expectations. Want a team in NY for the media market? Cool, but keep operating costs at the same level as if you were playing in Birmingham. Don't say "well we're in NY so we should expect 50,000+ in attendance."

Edit: Just read that the DC team will be playing at Audi Field, home of MLS DC United with a capacity of 20,000. That is perfect.
The NY team is set to play at MetLife stadium. Not at all smart lol. Operating costs for that will be ridiculous