Tuesday, January 27, 2009

Luxury 50 Yardline Suite Superbowl Tickets: $150k

Luxury Suite on the 50 yard line offered by owner of suite-- 8 tickets, 3 parking passes, 6 flat screen TVs, private restroom, private bar & lounge area, & full catering. Tickets may be purchased in pairs for $37,500.00 per pair - or best offer.

"Buy it Now" price on Ebay: $150,000

See more Superbowl 2009 listings here on Ebay.

14 Comments:

At 1/27/2009 1:08 PM, Anonymous poor boomer said...

I see a lot of posts here about how things have gotten a lot more affordable.

Looks like here we have something going in the other direction.

 
At 1/27/2009 1:23 PM, Blogger 1 said...

"Looks like here we have something going in the other direction"...

Yeah poor boomer its called 'market forces'...

 
At 1/27/2009 1:51 PM, Anonymous poor boomer said...

Ah, but if demand increases, shouldn't producers increase supply? Isn't that how the market is supposed to work?

 
At 1/27/2009 2:00 PM, Anonymous Anonymous said...

Stubhub says: “We’re going to see close to face-value prices”.

 
At 1/27/2009 2:02 PM, Blogger Ryan said...

The supply of seats at a stadium is relatively fixed. The Largest stadium in the NFL holds a little over 60K people. Now these tickets are for a luxury box, there are even fewer of these. Now as you increase the number of boxes you decrease the number of regular seats. Each stadium based on the known fan base installs the number of luxury boxes that will generate the most profit. So supply in this case is fixed in the short run. While in the long run the number can be increased the number of luxury boxes still is small compared to the number of general seats.

 
At 1/27/2009 2:04 PM, Blogger 1 said...

"Ah, but if demand increases, shouldn't producers increase supply?"...

Why should the producers increase supply in this particular case?

There's nothing in it for them...

"Isn't that how the market is supposed to work?"...

No since the seating is already a fixed amount...

 
At 1/27/2009 2:38 PM, Blogger misterjosh said...

I've always wondered why the NFL didn't set prices higher from the git-go. Seems like they're missing out on a terrific amount of money.

poor boomer - one way producers could increase supply would be to go to a system similar to the european soccer/futbol system. There would be different classifications: Professional, Semi-Pro, Amateur, whatever. Each of these classifications would have its own championship - more championships = greater supply.

One thing I think is neat about the soccer system is that really good teams can "graduate" to the next higher classification, while really bad teams can be "held back" to the next lower class. e.g. Detroit Lions.

Given the semi-monopolistic way pro sports are done in the US however, I doubt this will ever happen.

 
At 1/27/2009 4:31 PM, Anonymous poor boomer said...

I've been surprised for years that free marketeers don't write more about sports.

Obviously you can't cram more mid-field seats into an existing stadium. I'm sure Dr Perry is proud of the 100K crowds that Michigan Stadium packs in - why haven't more been built? Are NFL teams not able to fill 50K seats?

And what about league practices like luxury tax and salary caps? Oh the socialism! Imagine the outrage if it came from Washington.

 
At 1/27/2009 4:32 PM, Blogger NoWhining said...

"Ah, but if demand increases, shouldn't producers increase supply? Isn't that how the market is supposed to work?"

Also have to consider elasticities for demand and the costs of expanding capacity. Maybe fewer seats sold at these margins make it less attractive to increase supply.

Also, the Superbowl is played in a different stadium each year so that adds a little more complexity. It might be feasible for any one venue to expand if they can reasonably expect to realize the returns to expansion year after year. To incur the cost to significantly increase capacity for a one-time event makes the prospect a lot less feasible.

 
At 1/27/2009 4:40 PM, Anonymous poor boomer said...

p.s. I just noticed that increased incidence of obesity is apparently affecting stadium capacity: (do I see a future post here?)

Seats in the new Yankee Stadium are on average approx 5 percent wider (19-24 in.) than seats in the old stadium (18-22 in.)

Capacity in the new stadium (52,325 including standing room) is lower than in the old stadium (56,866) wlthough the new seating area is probably larger than the old seating area.

 
At 1/27/2009 4:48 PM, Anonymous poor boomer said...

Didn't the Orange Bowl host a disproportionate number of early Super Bowls?

Maybe the NFL could have a single velue on alternating years, with the Super Bowl awarded to other venues as they are now.

If yuo knew the event would be held in one location every other year, a Super Stadium would be feasible.

Imagine building a dome and holding it in Ann Arbor?

Obviously the NFL marketing gurus have crunched the numbers - they are very good at what they do - but as a poor person I seethe at being sacrificed at the altar of the almighty dollar. You KNOW I'm never going to be able to attend a Super Bowl.

 
At 1/27/2009 4:52 PM, Anonymous poor boomer said...

p.p.s. re: increased obesity affecting stadium capacity...maybe, maybe not.

could be that the capacity was downsized due to decreasing attendance, and the larger seats are just a happy byproduct of that decision.

 
At 1/28/2009 9:18 AM, Anonymous Anonymous said...

“The Super Bowl is a cultural ritual akin to Christmas or Thanksgiving dinner and it always has tremendous appeal,” Zimbalist said. “Secondary sales is where you see what is happening in the broader economy.”

Cheapest nominal Super Bowl tickets since 2004. And the $150K price tag has been reduced to $95K.

Bet you a $2000 ticket that charlesandbonnie don't get $50K.

 
At 1/28/2009 5:25 PM, Anonymous Anonymous said...

The offer has been cut to $70K as of 5:20 EST, the Playboy Bunnies will not make an appearance in your suite and Sports Illustrated cancelled their bash.

Real time economics in action.

 

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