Miami Heat cost one bar owner $30,000

[mikejet]

http://www.cnbc.com/id/40415733

For the Miami Heat season opener against the Boston Celtics, John Todora and his business partner Bob Hartley had an idea that would likely increase business at their bar.

They'd promise to pay the bar tab if the Heat lost.

The rules?

Fans much come into the bar, Whiskey Tango in Hollywood, Fla., located about 20 miles from Miami, and sign up on a list at least 30 minutes before tipoff. If the Heat lost the game, that fan would earn a $25 credit towards his or her alcohol bill.

The Heat lost the game, played on Oct. 27, 80-88. And although the bar lost $4,000 in lost beer and liquor sales, Todora and Hartley decided to extend the offer for the rest of the season.

"We figured, why not make our bar a home for Miami Heat games," Todora told CNBC. "As a fan, you can't lose. If they win, you go home happy. If you lose, we've at least compensated you in some way."

But Todora couldn't have foreseen that he'd be paying out so many bar bills. The Heat, stacked with LeBron James, Chris Bosh and Dwyane Wade, were predicted by some to give the 1995-96 Bulls a run for their record 72-game win season. But through the first 17 games, the Heat have collapsed. A loss against the Mavericks on Saturday, made their record 9-8.

So how have eight losses hurt Whiskey Tango?

"We've refunded about $30,000 worth of drinks," Todora said.

Does he regret that he promised to do this for the season? Did he take any sort of insurance?

The answers are no and no.

"We're pretty much unprotected from an insurance standpoint, so we're kind of at the mercy of the Heat," Todora said. "But we're happy we did this. It has given us so much publicity."

Todora said that people have come from miles away, passing plenty of sports bars to come to Whiskey Tango. Some Clevelanders visiting Miami even decided to watch a game at the bar.

"I asked where they found out about us and they told me that they read about our losses in the Cleveland Plain Dealer," Todora said.

So how are the losses "worth it?" Well, first consider that while the bar has paid off $30,000 in bills, Whiskey Tango paid less than $10,000 for the alcohol itself — the rest is the standard markup.

In exchange, Whiskey Tango has been talked about on networks from ESPN to CNN and Todora says he has done more than 60 radio interviews.

"I couldn't buy that for $10,000," Todora said.

Todora said $25 typically covers all a person can drink in the three hours it takes to watch the game, including getting there 30 minutes before. Beers average about $3 each and there are bucket deals. Fans must stay until the end of the game to receive their $25 rebate, which only comes off the alcohol bill and is given in the form of a gift card.

While Todora is happy about all the publicity, he says as a converted Heat fan, he'd rather not see the team lose. He's actually worried that even with the promotion, people will stop coming into the bar if the team loses too many games.

Said Todora: "In New York, they'll keep watching the games so they could boo you and get angry, it's not that way here. People will jump off the bandwagon as quickly as they jumped on it."

hahahahaha

[MaCruz]

That's what happens when you hype a team up like the Miami Heat who have yet to prove anything (minus Wade).

The more I watch this team, the more I want them to fail just like the 2004 Lakers. Then the bar will go bankrupt.

I'm not sure why he made bets on opening night!!?? NBA has 82 games, and it's a very long boring season until after All-Star break so losing 40 games you're still a #8 seed in the East.

[perdition]

I'm sure they are making plenty of cash in other sales just by getting the people to come in.

[fatediesel]

Originally Posted by perdition

I'm sure they are making plenty of cash in other sales just by getting the people to come in.

Yeah, the Heat are 9-8, so if the bar owner lost $10,000 during Heat losses it means he made over $20,000 during Heat wins. In addition, few people would go to the bar for the entire game and not eat anything, so he's making plenty of money there.

[brettallica]

This is pure marketing genius, I'll tell you that much. Think of all the business this bar is now getting.

On the note of the Heat as a basketball team, they're still sitting pretty healthy in the grand scheme of things. They've got a dynamite trio, they're still getting used to playing together, and in all of that they're still 9-8 and can really only get better. They are 7-3 at home and 2-5 on the road, so yeah they've got some work to do, but the pieces of the puzzle will start falling into place.

[DonRSD]

Lets go heat!!!

[chefazn]

Genius marketing. The 10k he pays is a steal for this publicity and traffic.

[Batman1980]

Originally Posted by chefazn

Genius marketing. The 10k he pays is a steal for this publicity and traffic.

Yup, it's a lot like the doorbusters stores do to get people to buy stuff at killer prices, well done bar owner.

[CandyZone]

Yeah seriously smart guy to get his bar so well known with that little trick. Probably should have taken out some kind of insurance before hand but not sure if there's coverage offered for "giving away loads of free drinks depending on a basketball game score!" Haha oh well. Could probably find something at least on http://www.businessinsurance.org but hopefully the Heat will just keep gettin hotter!