Wednesday, January 25, 2006

Interesting Facts About Super Bowl Tickets

A report in The Seattle Times relates this tidbit about how much people are willing to pay for a luxury suite to the Super Bowl:
TicketsNow.com, which connects ticket buyers and sellers, advertised Monday a 40-person luxury suite on the 40-yard-line for — are you sitting? — $261,000. Another Web site priced a box at $315,000. The median home price in the Detroit area last year was about $169,000.
I mean, that sum of money is just a drop in the bucket for a reeediculously wealthy teacher like me, but I thought it might amaze you guys...

Also, later in the article, they explain that only 1% of Super Bowl tickets are sold to the public. I knew the percentage was small, but I did not know it was that small.

(Source: Marginal Revolution)

8 comments:

Daniel Hanison said...

Why not just buy a very very nice tv and a ferrari? It says in the article that the corporations that rent out the boxes want to impress very influential clients. If the client is going bring in more than $261,000 than its worth it. Otherwise they should just sit back and watch on a big screen and give the money to somebody who needs it (like me).

Hagar the Horrible said...

What do you guys think of this? Do you think sports teams could (or shold) have some purpose other than making money for their owner?

Similarly, do you think that the price in this case efficiently allocates the good (the box)? Remember that the price allocates goods and services efficiently because it makes sure the people who want the good most (stand the most to gain from it) get it. Do you think this is true in this case? What implications does your answer have for the allocation of other good and services?

Jeff Bloom said...

I must agree with Daniel. A company could purchase the box for a game that will last a few hours. For the same price, they could purchase a ridiculously, ridiculously, ridiculously nice tv (including surround sound, and lets throw in some TiVO just for kicks). Also, they could get a well catered meal, and possibly some alternate entertainment (lets say someone small like John Mayer!).
But for some nuts, the benefits outweigh the costs here. Some people are so crazy about being in the stadium with the surroundings is extremly important. The problem with the $261,000 tab....You don't get to see the commercials!

Thats the way the cookie crumbles...Jeff

Anonymous said...

I don't see why sports teams should have any other purpose than making money for their owner. Think about it, the owners of sports teams are doing the same thing that any businessman tries to do: sell their product. Just in this case the product is a team (or the service they provide to the fans). So logically the owners whose products are most successful (win super bowls, are the most exciting to watch, etc.) will make the most money. Although most of us just like to watch sports, they are truely complex businesses and very profitable ones at that. As far as boxes being allocatively effiecient, I would say they are not. I'm sure die-hard Steelers fans want to see this years game from a fancy box alot more than the clients of major cooperations who will be the ones sitting there. I'm sure half the people in those boxes will be foreign clients who don't even like American football. So unfortunitaly most of the people who want super bowl tickets the most will be at home watching the game on their TV because tickets are way to expensive for them.
Brian Berkowitz

Anonymous said...

I understand that the price fits the supply and demand, and that the boxes will make the franchise more if the boxes are sold to wealthy companies. However, I tend to agree with berk. It IS a sad thing to see the people who enter the boxes caring less for the game than I do for figure skating. I guess that I am just bitter that I wont be seeing this year's game in person. From an economic standpoint, the allocation of the good is done well. This is taking into mind that some of these same companies will pay $2.5 million for 30 seconds of advertisement the same night (SI fact). Now that I think about it, they may be able to charge more. Why not? Well whoever is in charge of selling the boxes is doing a good job because the next week they will be the ones that will be hiring John Mayer to play at their catered party while they all watch the superbowl tivo'd on their rediculously rediculously nice tv.

Anonymous said...

oh by david hale

Anonymous said...

so in one sense I agree with the fact that it would probably be more logical to simply watch the game on a big screen tv and buy something more durable with the money you would have spent on super bowl tickets... but the thing is to a lot of people it's not JUST a game... especially if it is their team in the superbowl and they are hardcore fans. its such a different experience being at the games rather than just watching it... sure you may be able to have a better angle actually viewing all of the plays... and it may cost a lot less... but going to the games is an amazing experience and so much more fun. Especially for something as huge as the superbowl if your team is in it and everyone around you is either a friendly fan or an enemy it becomes an exciting fun time and leaves memories and feelings that a tv simply cannot provide you with. I agree though that it is sad to think about the fact that only 1% of tickets sold to the superbowl are to regular fans. Businesses need to find other ways to impress their coworkers and let the people that are truly fans and wish to attend the game for their own personal reasons get the tickets.

-Maria Guilbault

Anonymous said...

the word 'ridiculous' has been used 6 (now 7) times in this one thread...