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Commissions and pricing
Seven area vendors pay Aramark for
space in Ravens Walk.The Baltimore Ravens and Aramark teamed up in 2007 to create a new business model for the tailgating area the NFL team controls between M&T Bank Stadium and Orioles Park at Camden Yards.
Aramark invested $400,000 up front, with no money from the Ravens, to develop the pregame party zone, doing two-year deals with local restaurants and bars to sell their products, promote their brands and drive business back to their regular establishments.
The Ravens get a small portion of the $10,000 to $25,000 annual fees the seven vendors pay Aramark to operate in that space, and in year three, the team collects 100 percent of that income. At that time, the contract shifts to a more traditional deal between the team and concessionaire, where the Ravens and Aramark share equally in the percentage of gross sales revenue tied to the vendors’ agreements.
The Ravens also generate sponsorship revenue by partnering with Ravens Walk’s beer and spirits suppliers. The benefit for Ravens fans is they pay lower prices, such as $5 for a 24-ounce can of domestic beer and $3 for a slice of pizza, compared with $7 each for a 16-ounce bottle and six-inch personal pizza inside the stadium. They also get access to local foods exclusive to the tailgate zone.
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