Economic Downturn and the MLB

This week I read a blog from the bucknellorgtheory09 blog about how the economic downturn was affecting ticket sales at New Yankees Stadium.  I agree that the current state of the economy certainly deterrs some people away from luxuries like attending professional sporting events but it’s not the main reason.  The real reason New Yankees Stadium had so many empty seats was because the seats were incredibly overpriced.  No one in their right mind is going to pay thousands of dollars to sit one section closer to the field.

The Philadelphia Phillies never had an issue selling tickets.  Over the past few seasons every single home game has been a sell out.  This isn’t because the slumping economy decided to pass over Philadelphia and ravage other cities.  It’s because Phillies tickets are reasonably priced.  Poor tickets sales at New Yankees stadium was not an economic problem it was a mangerial problem.  Once the Yankees’ management admitted that and lowered ticket prices, the fans came right back.

The economy isn’t in such a terrible condition that nobody can afford  modest luxuries like attending professional sports games.  Sports franchises are feeling a pinch like the rest of us but not to the extent that they can’t adequately fill their stadiums.  As long as the team is successful on the field and management doesn’t try to charge people $2,675 per ticket, there will be plenty of fans to fill the seats.

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6 Responses to Economic Downturn and the MLB

  1. Jordi says:

    Egads, please embed the hyperlink!

  2. Jordi says:

    Really? $2,675? For one seat? Can you source that?

    Also, can you find the author of your original post and let them know you are following up?

    What has been Yankee attendance in the last four years?

    This post in relation to Josh’s on “Second Tier” sports suggests it is not the price as much as the “product” that attracts people. Others there, some of whom seem to be particularly interested in smacking around the WNBA, will argue that it is something essential about the sport and not the price that is driving attendance.

  3. Alyssa Haglund says:

    I agree that the Yankees high (and continuously rising ) ticket prices are a buzz kill for fans and is the main reason why there are empty eats in the stadium. However, the Yankees actually led the Majors in home attendance last year, just like the seven seasons before that. Having one of the largest stadiums in the league allows them to have empty seats and still rake in the ticket sales. Perhaps this is not poor management, but actually a glimpse into the Yankee strategy.

    • Jordi says:

      HEART the link in the comment…

      So, they have figured that the yield at current prices is higher than lower prices and full house? Where is a decision scientist when I need one!

  4. RickE says:

    My first reaction is that cities with the “big spenders” (e.g. New York, Los Angeles, etc.) will always make premium seats absurdly expensive because they have the customers that are willing to pay that price. What I mean is, its not the Yankees, its New York. However, when looking up ticket prices I found an interesting article that gave the price for CIippers courtside seats, $750, and Lakers courtside seats, $2000. Not only do these two teams play in the same city, they play in the same arena. In the end, the Yankee’s aren’t as popular as they thought they were.

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