online viagra us confezione cialis 20 mg generic cialis berlin metformin 500 mg uses cialis 15 mg prices cialis 20mg hlywd buy 10mg viagra cialis 20mg professional levitra cheapest online buy tetracycline uk buy online wellbutrin viagra 100mgusa stopping 10mg lexapro wellbutrin xr generic sublingual viagra 150 mg kosten viagra 100mg online pharmacy lexapro cheap 5mg. cialis zithromax 250 mg std zoloft generic difference viagra online buying 100mg zoloft dose cialis 100 mg overnight actoplus metformin generic clomid 40 mg zithromax online eu viagra online sites viagra generic cheap synthroid 125 mg clomid online uk buy levitra mastercard 250 mg of phenergan viagra professional buy kamagra 10 mg buy wellbutrin usa buy synthroid cheap buy kamagra china mail order viagra augmentin 1000 mg dawkowanie buy zithromax cvs diflucan compresse 200 mg nexium online compare online pharmacy dapoxetine a amoxil 500 mg lexapro 10mg generic womens viagra online levitra generico contraindicaciones online viagra drugs taking 2 20mg levitra priligy online andorra 20mg lexapro insomnia buy cialis brampton beipackzettel cialis 10mg viagra gel buy diflucan 200mg capsules generic wellbutrin companies buy cheap doxycycline valtrex 500 mg posologie generic viagra eu overnite cialis 5mg 50 mg lasix anwendung xenical 120 mg mexican viagra online buy kamagra polo buy levitra plus celebrex 200 mg migraine synthroid dosage .05 mg cialis 2.5 mg cukup is zithromax generic propranolol hydrochloride 80 mg 60mg prednisone dog generic valacyclovir valtrex buy zovirax budapest kamagra 100mg erfahrung fungsi zovirax 200mg viagra manly generic propecia 5 mg uk buy mexican viagra doxycycline 50mg iv doxycycline 100mg alcohol clomid tablets 50mg vibramycin doxycycline 100mg cialis mg 5 40 mg levitra safe online synthroid cialis 10 20 50 mg cialis 30 lu 100 mg diflucan 300 mg generic viagra good zoloft dosage 12.5 mg order nexium 40 mg ordering valtrex canada cialis uk 40mg buying viagra singapore 20mg generic levitra 50mg clomid anavar purchase viagra 100 mg cialis buy jakarta stopping 25 mg zoloft nolvadex 40mg cipro 500 mg tablet buying nexium valtrex 500mg packungsbeilage zovirax dispersable 200 mg generico nexium 40 mg difference 50 100mg viagra metformin zydus 1000 mg problemas cialis generico werking cialis 5 mg viagra 100 mg funziona propranolol 100mg buy cialis makati legal cialis online order cialis 10 mg buy cialis shop mg phenergan viagra mexico generico viagra buy now buy doxycycline generic generic cialis c20 buy priligy 30 mg levitra 20mg liechtenstein metformin backorder order Cialis 120 Tabs controindicazioni cialis generico levitra 300mg priligy buy online cialis online authentic levitra 10 mg contraindicaciones ubat clomid 50mg propranolol inderal 40mg zithromax 40mg erfahrungsberichte viagra online clomid 50mg cm zovirax de 800 mg bactrim syrup 100mg cheap levitra walgren sildenafil viagra 50mg canada cheap cialis cialis fda online viagra original 100mg generic erythromycin cream strattera 25 mg prospect golden viagra 3800 mg generics of viagra levitra cheaper alternatives viagra 25 mg pret viagra original 25mg generic lexapro dose xenical generic online kamagra sildenafil 10mg clomid cheap 100 generic v synthroid 5mg cialis equivalent cialis pills 20 mg cialis online ru zoloft 50 mgs augmentin 625mg bnf lisinopril tablet 5mg viagra generic drugs cialis 5 of 10 mg tab levitra 20 mg cialis 20 mg istruzioni metformin 500 mg generic cialis 20mg features cialis 20 mg walmart zithromax 1000 mg zoloft 35 mg wellbutrin borderline personality wellbutrin er generic buspar mg generic4all cialis synthroid generic issues augmentin 500 mg tabletki yellow generic cialis lisinopril 20mg price xenical online order lisinopril 20 mg prescription esomeprazole nexium generic fish tetracycline 250 mg cheapest lasix online order valtrex canada doxycycline 100mg adalah celebrex celecoxib 200mg cialis kup online viagra generika 50 mg difference generic propecia 5mg lexapro affair generic viagra yet prednisone 30 mg tablets nexium 20 mg gastritis erythromycin digestive disorders 25 mg de viagra zithromax 500 mg dosering viagra online ideal generic wellbutrin weight 10mg of lexapro cialis price 20mg clomid 50 mg results take 3 5 mg cialis kamagra 100 100 mg buy condom viagra efectos viagra 25 mg 800 mg viagra gold doxycycline stada 100 mg viagra 100 mg prescription viagra mg 25 lisinopril 10mg lupin viagra 25 mg rezeptfrei samenstelling nexium 20 mg erythromycin 800mg 80 mg lexapro lexapro prescription online buy red viagra 200 lexapro buy australia sildenafil viagra 100mg getting doxycycline online buy 1 single viagra cheap kamagra 150mg generic viagra europe metformin 1000 mg generic 2.5 cialis cheap viagra generico 100 mg propranolol comprimidos 40 mg buy doxycycline vietnam cipro 800mgs cheap zovirax 400 mg 400 mg doxycycline chlamydia nexium buy canada 20 mg active cialis viagra usa 100mg prospect metformin 500 mg viagra generic brazil 5mg of cialis bula zoloft 100mg 160 mg of strattera viagra cheap cheap levitra 20 mg efectos cheap india viagra clomid 50mg online cheapest generic viagra 100 using 40mg cialis tried cialis 800mg lexapro 10mg or 20 lexapro generic now viagra dosge generic phenergan 12.5 mg suppository kamagra 150mg dosage glucophage 1000 mg prix viagra generico 25 celebrex 500mg cialis 800 mg black buy viagra placebo 10 mg levitra pricing bactrim buy online cialis generic cialis 800 mg cialis reviews zovirax 200 mg 25 tablet buy propranolol hydrochloride 200 400 mg viagra dose generic lexapro 10 mg cheap levitra 100mg phenergan 10 mgs cipro 500mg liquid augmentin de 1000 mg discount generic propecia generic viagra mg augmentin 875 mg 5 days cialis tadalafil generic buy cialis real allergic generic wellbutrin zovirax 800 mg chickenpox synthroid 75 mg price buying erythromycin generic cialis illegal lisinopril doc generici generico viagra bula blueberry 100 viagra generic doxycycline 100 mg dog diflucan cps 150 mg buy cialis superdrug kamagra dubai buy lexapro 20 mg escitalopram cialis 5 mg x 14 generic nexium mexico kamagra gel 20 mg lasix furosemide 40mg purchase propranolol online buying viagra tijuana cialis 5 mg discount cialis order online generic zoloft withdrawal bulk buying viagra lexapro alternatives generics buy metformin usa cialis 10 mg fiyati generico viagra chile viagra condoms online tryed 200mg kamagra valtrex tab 500mg lexapro 10 mg ahumada buy nolvadex sydney pfizer viagra 500mg levitra 20mg wikipedia buy levitra drug valtrex mgs 1000 levitra 5 mg tablets purpose metformin 500 mg buy 40 mg cialis diflucan medicine generic cialis 500 mg generic cheapest cialis black buy viagra poland propranolol hcl 10 mg dubai buy viagra citalopram buy online achat levitra 20 mg bugiardino lasix 25 mg posologia cialis 10 mg viagra online kroger periactin 4mg tablets 50 costo cialis 0.5 mg discount viagra 100mg danger generic levitra levitra substitute generic cialis online genuine buy finasteride propecia cialis 20 mg divisibile generic lexapro 2012 buy generic propecia nederland zovirax 800 mg online viagra 50 mg.tablets prednisone 5 mg tablet generic tetracycline 500mg viagra online nongeneric cheap levitra nz viagra order cialis duration levitra 20 mg generic cialis amsterdam lasix generic furosemide wellbutrin 300 mg tablets diflucan nail mg wellbutrin buy online comprar online viagra viagra online reliable zoloft 200mg dosage order zithromax azithromycin 200 mg clomid bfp viagra dose mg prices viagra 50mg cheap levitra 10mg buy viagra bc generic clomid 50mg xenical generic 120mg synthroid digestive disorders test cialis 20 mg buy diflucan internet generic levitra valif propecia thailand online buy propranolol 40mg 20mg nolvadex day nexium 40mg obat viagra generico recife valtrex online cheap wellbutrin at 450 mg lexapro anxiety disorder levitra 10 mg uk 100mg viagra generic cheap 150 mg viagra kamagra 100mg reviews generic cialis double cialis 5 mg cena viagra cialis buy online viagra 100 buy zithromax 1000mg 5mg cialis cheap cialis 20mg attention zoloft 50 mg engorda 230mg viagra levitra 20 mg yorumlari 600 mg of celebrex prednisone 30 mg prices prednisone 60mg taper viagra 100mg 90 pills levitra 10 mg siparis prednisone 5mg tab 800mg zovirax buy doxycycline prescription 800 mg bactrim viagra gold online buy cialis proffessional lisinopril 20 mg 12.5 mg buy official cialis 40mg propranolol 150mg clomid success acyclovir generic valtrex diflucan mgs cialis order turkey generic viagra 2019 lexapro 10 mg wikipedia viagra online kaufen doxycycline acne buy viagra 6800 mg doxycycline mono 75 mg amoxil 400 mg suspension cialis 20mg forum nexium 40mg online order wellbutrin sr 50 mg prednisone taper lisinopril online canadian generic to strattera generic lisinopril 3759 buy overseas viagra cialis 2.5 mg buy obat zithromax 500 mg fda lexapro generic generic cialis fda strattera 25 mg used cialis 20 mg .70 cents medexpress generic viagra celebrex 200 mg gel lisinopril 20 mg prospect cialis 5 mg yahoo lasix 20 mg online clomid online prescriptions levitra online 10 pills celebrex generic medication 5 mg propranolol anxiety arrested buying cialis clomid 50 mg zwanger lexapro 15mg generico lasix online prescription viagra 100mg 16 medicine buspar 10mg levitra 10mg alcohol cialis generic problems lexapro generic side buy now cialis viagra generico italia buy valtrex walmart lisinopril generic version 56 erythromycin 250mg 150 mg wellbutrin effective generico de bactrim dividere viagra 100mg levitra reviews 20 mg cialis 5mg fta lexapro 20 mg presentacion viagra 50 mg teilen diflucan 150 mg embarazo paris buy viagra doxycycline 200 mg iv buy clomid cost cheap viagra 150 mg cialis mg20 celebrex 200 mg administrare buy diflucan medication zithromax 1000 mg buy propranolol 10 mg recreational zoloft 200mg propranolol 40mg lch male order cialis amoxil 500 mg treatment viagra 50mg which toronto buying viagra generic levitra europe super viagra cheap using 25 mg viagra xenical generico comprar nexium 40 mg tabletes nexium 40 mg cpdr buy nexium 40mg lisinopril 40 mg statin 600mg red viagra cialis 10mg 48 buy some cialis generic levitra manufacturer levitra vademecum 10 mg cialis 50 mg tadilalaf 120 mg strattera drinking lasix cp 25 mg 100mg zoloft review cialis 5 mg cheapest buy kamagra nz order propecia cod cialis 20mg reviews xenical online paypal levitra orosolubile online doxycycline online generico viagra funziona cialis dosaggio 40 mg buy propecia eu took 300 mg wellbutrin erythromycin 500mg uk clomid 150 mg buy cialis prague buy viagra.cz viagra sales cheapest levitra 10mg generic zoloft online bestellen
Home Pete Toms LWIB: "Price Integrity" and the Resale Ticket Market, Plus Tidbits Including the Cubs

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 509 guests online

Atom RSS

LWIB: "Price Integrity" and the Resale Ticket Market, Plus Tidbits Including the Cubs PDF Print E-mail
User Rating: / 12
PoorBest 
Pete Toms Article Archive
Written by Pete Toms   
Monday, 23 May 2011 14:21

Last Week in Bizball with Pete Toms

This week in “Last Week in BizBall, “price integrity and the secondary market, plus tidbits, including a handful on the Cubs.

“PRICE INTEGRITY” AND THE SECONDARY MARKET

The current baseball biz story that I find most interesting is ticketing. While MLB has succeeded grandly in growing and diversifying their revenues via MLBAM (broadband and mobile), MLB Network, RSNs and real estate development, ticketing remains the lifeblood of franchises. Not so long ago MLB foresaw their entry into “secondary ticketing” as an untapped and lucrative source for additional revenue growth. In 07, MLBAM entered into a 5 year agreement with secondary ticketing industry leader StubHub. With that deal soon to expire, sports biz watchers are questioning if MLB will seek to extend it. Why might MLB get out of secondary ticketing? Many believe that the secondary market is killing both the “walk up” gate and making a mockery of ticket “price integrity”.

Pricing tickets in professional sports has long been controversial, particularly in MLB which has, by far, the largest ticket inventory of the “big 4”. Proponents of discounting tickets, or even giving away tickets, argue that it is better to have fans in the ballpark spending money at the concessions than have empty seats. The counter argument has always been that deeply discounted tickets destroys “price integrity”. In other words, when demand is low, discounting attracts fans, but when demand rebounds it is more difficult to bring the prices back up to their prior point. As well, the theory goes, discounting tickets alienates full and partial season ticket buyers (the most loyal and important customers) who resent having paid substantially more for their tickets. Early least season I brought attention to criticism in the Toronto sports media of Blue Jays President and CEO Paul Beeston over his refusal to engage in ticket discounting. Mr. Beeston’s critics pointed out that despite woeful early season attendance and widespread expectations that the club would finish well below .500 (those predictions were wrong), Blue Jays ticket prices were 12th priciest in MLB. Mr. Beeston responded to his critics by saying, “We’re trying to put some integrity back into our ticket pricing.” Beeston’s negative attitude towards ticket discounting might, in part, also have been in response to the Blue Jays “toonie Tuesday” (in Canada a two dollar coin is a “toonie”) promotion of the previous regime. That early season promotion, while popular, also resulted in excessive drunkenness and violence in the upper deck of the Rogers Centre.

LWIB, in light of the Nationals recent $1 and $2 ticket promotions, Darren Rovell argued that due to the secondary market, teams are fighting a losing battle over “price integrity”.

We're in the middle of May now and there are nine parks in Major League Baseball this year that are averaging crowds that fill less than half their ballpark. Most seem to be disinterested to do what it takes to fill the stands.

Instead, they're clinging to the age-old marketing tenet — don't ever devalue your product. Problem is, your product isn't being devalued. It's being revealed. The secondary market is showing that the team's price on tickets is off. If teams don't accept that on a given night against a bad opponent, their ticket is worth $1, then they are just denying the reality.

Tonight, the Cleveland Indians play the Kansas City Royals at Kauffman Stadium. The cheapest seat is $5. Yet on StubHub [EBAY 31.70 -0.78 (-2.4%) ], there are more than a hundred seats for less than $5. What's the difference? Well, the team is likely to sell more tickets if it specifically markets a lower price.

Perhaps the rapidly spreading implementation of dynamic pricing across MLB will decrease the amount of tickets being sold at below face value on the secondary market. Unlike the secondary market, clubs set the prices of “dynamically priced” tickets and, in fact, set artificial prices floors in some sections of their ballparks to protect the “price integrity” of tickets already sold to full and partial season-ticket holders. As well, across professional sports, clubs appear set to impose stricter controls over who they allow to resell “their” tickets. This initiative is made more feasible with the move to “paperless ticketing” which will allow ticketing vendors to impose restrictions on reselling. Ultimately, some speculate the future of ticketing will be decided in court over the question of who owns the ticket and what they are allowed to do with it.
SELECT READ MORE TO SEE THIS WEEK'S TIDBITS

TIDBITS

  • Ed Sherman wrote about the major decline in attendance at Wrigley Field this season. Ed understands that the weather has been brutal but doesn’t believe that it is the sole factor in the diminished numbers. Ed also notes that there are a glut of cheap Cubs tickets on the secondary market, which has “undercut” the club’s discount promotions. Ed also interviews Cubs owner Tom Ricketts for his perspective on Cubs ticket sales.
  • The Cubs plans to renovate Wrigley Field are often, and understandably, compared with what John Henry’s group has done with Fenway Park. Mr. Henry has been very successful in increasing revenues at Fenway without compromising it’s allure. The Cubs visit to Fenway this past weekend led Ed Sherman to write that Tom Ricketts has no choice but to make similar changes to Wrigley Field.

…the Red Sox reportedly generate an estimated $35 million to $40 million per year from their signage. That's big money.
Meanwhile, the Cubs, who took extreme grief over putting up the Toyota sign in the bleachers, produce a fraction of that amount because of limited in-stadium advertising.
You can bet Cubs owner Tom Ricketts will be taking notice of all those signs and the big moneymaking video board in center field. He'll also note that they really haven't diminished the charm and ambiance of the fabled ballpark. 
I think it is just a matter of time before Mr. Ricketts gets aggressive in adding more signage to Wrigley Field. He really has no choice. It's too much money to be leaving on the table.

  • Earlier this month (scroll down to the tidbits) I brought attention to John Maffei’s report that the Padres and Fox were set announce a 14 yr/$20 billion deal. I added, “To put this in perspective, the AAV of $70 million is almost a QUINTUPLING of the reported $15 million the Padres currently receive from Cox.” LWIB, John reported that the deal is more likely to be in the range of $25 - 30 million, over 20 years. John reports that, at least initially, the Padres games will likely be broadcast on FSN-Prime Ticket until if/when Fox launches a San Diego based RSN. (HT Fang’s Bites)
  • LWIB, ESPN told us that, according to Nielsen, ratings for Sunday Night Baseball are up 15% over last season. They added that, “Overall, ESPN’s 22 MLB telecasts this season are up seven percent among viewers…” Ratings for Saturday baseball on FOX have been a mixed bag. The Sports Media Watch blog reported that, “The first of three straight primetime MLB telecasts on FOX this season was down from last year, but still hit a season-high in viewership.” And, “Overall, four of the seven MLB telecasts on FOX this season have had increases in viewership compared to last year.”
  • How did the Yankees end up paying Posada and Jeter a combined near $30 million this season? (Not that baseball fans have any sympathy, me included) Brian Goff has an interesting take on this subject at The Sports Economist blog.
  • I didn’t know this until LWIB, but last season, Chicago-based AT&T U-verse customers were able to view Cubs home games on WGN using Chicago Cubs Multiview. AT&T describes Chicago Cubs Multiview as an interactive TV app that lets U-verse customers view up to four different camera angles of the Chicago Cubs home games at one time, choosing from the main WGN America game broadcast and six alternate camera angles. Carolyn Braff of the Sports Video Group blog reported that this season, AT&T and WGN are making their Cubs IPTV app available nationwide. Carolyn adds, “The Chicago Cubs Multiview app is the latest in a trend of television applications that give fans more access to their sports teams and more control over how they consume sports content. Other sports apps available through AT&T U-verse TV include Sports Multiview, which allows fans to choose from all of their sports channels to watch up to four at once; Fantasy Football, which allows fans to track the progress of their Yahoo! Sports fantasy football team on their TV screens; and College Basketball, which allowed fans to view brackets, their personalized bracket, and game summaries on their TV screens during the NCAA Men’s Basketball Tournament.”
  • As the recession has squeezed the budgets of governments of all levels, public investments to construct, finance and, perhaps most importantly, maintain, publicly owned stadia are under increased scrutiny. LWIB the New York Times published a piece by Ken Belson detailing the failure of publicly owned arenas in smaller cities to deliver on their promise of generating development, taxes, jobs etc. At the “major league” level, LWIB, Todd Portune, a Hamilton County commissioner, received a lot of local media attention over his proposal to levy a new ticket tax on the Bengals and Reds. Sharon Coolidge estimated that, ..the tax could add $14 to the price of a Bengals ticket and 44 cents to the price of a Reds ticket. The City of Cincinnati already imposes a 3% admissions tax, and a half-cent sales tax to pay for the two stadiums has been collected since 96. Nonetheless, Hamilton County is facing shortfalls of 10’s of millions annually (numbers vary according to reports) in operating and maintaining the two stadiums. In fairness to the Reds, the operation of Paul Brown Stadium is responsible for the vast majority of the shortfalls in revenue. The Browns and Reds negotiated their stadium deals during the heyday of the public stadia building boom. Today, in harsher, tougher times, politicians like Todd Portune understand the political gain in playing to voters who resent subsidizing multi-billion dollar sports leagues.

Pete Toms is senior writer for the Business of Sports Network, most notably, The Biz of Baseball. He looks forward to your comments and can be contacted through The Biz of Baseball.

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?