Doomsday101
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TAMPA, Fla. (MarketWatch) -- Blame it on the horrible economy or the lack of major-market star power among the contenders for this year's NFL Championship ring or a sorry combination of both, but Super Bowl tickets are on sale for as low as $1,300 a piece in the secondary markets.
Yes, that's a bargain-basement price for the privilege of being in the stands during what is largely considered the greatest show on earth. Of course, those seats are in the nose-bleed upper corners of the Raymond James Stadium in Tampa where the Arizona Cardinals will take on the Pittsburgh Steelers on Sunday in Super Bowl XLIII.
But even the average cost of a ticket -- at $2,488 a piece on StubHub.com -- is a deep discount compared with the past two Super Bowls when average prices were easily $1,000 to $1,500 more. The prices range from $1,299 that a buyer from Pittsburgh paid last weekend for two tickets to $8,500 a piece for three tickets that a man from La Jolla, Calif., bought in September.
"These are the lowest levels we've ever seen," said Sean Pate, spokesman for StubHub, which has been buying and selling tickets for nine years. "People just don't have the disposable income they've had in the past."
The average cost of a ticket to last year's game between the New York Giants and the New England Patriots was at $3,526. That ranks as the second-highest average ticket price at StubHub, but was still considerably lower than the $4,004 that the 2007 game between the Indianapolis Colts and the Chicago Bears commanded.
The face-value prices, set by the NFL, are $800 and $1,000, raised from last year's $600 and $900. About 53,000 tickets were sold at $800 and 17,000 -- considered the best seats in the house -- carried the $1,000 price tag. In a nod to economic forces at hand this year, the NFL shaved the price of 1,000 tickets to $500.
"It's an acknowledgement of what our fans are facing," NFL spokesman Brain McCarthy said. Though there are a relatively large number of tickets available in the secondary markets, the NFL considers the game sold out.
The NFL charges such hefty prices because of the Super Bowl's heavy glam factor and the exorbitant prices in the resale market. "Tickets generally are resold for three or four times the face value because of the value of the Super Bowl experience," McCarthy said.
Bruce Springsteen and the E Street Band are this year's musical component at half time, which tends to be an over-the-top extravaganza. Then there's that once-in-a-lifetime prospect of actually being at an event that millions are watching but only a relative handful get to attend.
The closer to game time, the lower the price
Ticket prices, of course, ebb and flow as the laws of supply and demand shift. But they're also impacted by timing of the Super Bowl. The closer it gets to game day, the cheaper the prices become because the other costs involved -- finding an affordable last-minute flight and hotel room, for example -- are likely to rise.
And if there's a glut of inventory, well, let the fire sales begin. An unused ticket is a financial loss.
Hours before the game begins, available tickets can go for as little as face value. After the kick-off, they're cheaper yet.
An opportunity to attend a Super Bowl game -- even alone -- has long been the equivalent of finding a pot of gold at the end of rainbow. But this year, that once-in-a-lifetime experience might take a back seat to good old-fashioned pragmatism.
"If you are a Cardinals or Steelers season-ticket holder and you're out of work or worried about losing your job, the $5,000 or $6,000 you can get selling your tickets might be more important to you now than one day in Tampa," Pate said.
According to LiveStub.com, the average price for a ticket has slumped since Jan. 4, dropping to $4,607 from $6,036. "It always going to happen that there's a drop in prices around now, but such a dramatic decline has a lot to do with the economy," said Michael Hershfield, CEO of LiveStub.com.
"Demand has decreased and the supply is still there in the market," he said. "People just can't afford to go down there."
Plus, many companies have either severely curtailed their entertainment spending for the Super Bowl or have cut it out all together.
"What company wants to $1 million to rent a plane and fly down their top clients," Hershfield said. "You can't justify that on your bottom line right now. There are external forces that go far beyond the sports world."
The economy is not all to blame. If the battle is going to be fought by teams that don't generate enthusiasm in more than their own back yard, ticket prices will suffer. Last year's match between legacy teams the Giants and the Patriots was loaded with anticipation from flocks of fans in two large cities, New York and Boston, as well as followers in most other parts of the country.
Same was true for the Bears and the Colts, both considered major market teams.
While the Steelers make that list too, the Cardinals don't and they're storied history as a losing team hasn't helped their cause much. This is the first time in Super Bowl's 43-year history that the Cardinals have made it to the game.
StubHub said the lighter demand for tickets has generated a lot of sales on its site, making it the highest-grossing event in company history. With the average price more than 40% below last year's cost, StubHub has sold more than double the amount of tickets this year compared to this time last year.
Hershfield believes that tickets could go for face value as soon as Friday or Saturday unless demand mysteriously picks up. "Ultimately this is great for fans because they can actually get tickets," he said. "In years past there wasn't a chance."
Jennifer Waters is a MarketWatch reporter, based in Chicago.
Yes, that's a bargain-basement price for the privilege of being in the stands during what is largely considered the greatest show on earth. Of course, those seats are in the nose-bleed upper corners of the Raymond James Stadium in Tampa where the Arizona Cardinals will take on the Pittsburgh Steelers on Sunday in Super Bowl XLIII.
But even the average cost of a ticket -- at $2,488 a piece on StubHub.com -- is a deep discount compared with the past two Super Bowls when average prices were easily $1,000 to $1,500 more. The prices range from $1,299 that a buyer from Pittsburgh paid last weekend for two tickets to $8,500 a piece for three tickets that a man from La Jolla, Calif., bought in September.
"These are the lowest levels we've ever seen," said Sean Pate, spokesman for StubHub, which has been buying and selling tickets for nine years. "People just don't have the disposable income they've had in the past."
The average cost of a ticket to last year's game between the New York Giants and the New England Patriots was at $3,526. That ranks as the second-highest average ticket price at StubHub, but was still considerably lower than the $4,004 that the 2007 game between the Indianapolis Colts and the Chicago Bears commanded.
The face-value prices, set by the NFL, are $800 and $1,000, raised from last year's $600 and $900. About 53,000 tickets were sold at $800 and 17,000 -- considered the best seats in the house -- carried the $1,000 price tag. In a nod to economic forces at hand this year, the NFL shaved the price of 1,000 tickets to $500.
"It's an acknowledgement of what our fans are facing," NFL spokesman Brain McCarthy said. Though there are a relatively large number of tickets available in the secondary markets, the NFL considers the game sold out.
The NFL charges such hefty prices because of the Super Bowl's heavy glam factor and the exorbitant prices in the resale market. "Tickets generally are resold for three or four times the face value because of the value of the Super Bowl experience," McCarthy said.
Bruce Springsteen and the E Street Band are this year's musical component at half time, which tends to be an over-the-top extravaganza. Then there's that once-in-a-lifetime prospect of actually being at an event that millions are watching but only a relative handful get to attend.
The closer to game time, the lower the price
Ticket prices, of course, ebb and flow as the laws of supply and demand shift. But they're also impacted by timing of the Super Bowl. The closer it gets to game day, the cheaper the prices become because the other costs involved -- finding an affordable last-minute flight and hotel room, for example -- are likely to rise.
And if there's a glut of inventory, well, let the fire sales begin. An unused ticket is a financial loss.
Hours before the game begins, available tickets can go for as little as face value. After the kick-off, they're cheaper yet.
An opportunity to attend a Super Bowl game -- even alone -- has long been the equivalent of finding a pot of gold at the end of rainbow. But this year, that once-in-a-lifetime experience might take a back seat to good old-fashioned pragmatism.
"If you are a Cardinals or Steelers season-ticket holder and you're out of work or worried about losing your job, the $5,000 or $6,000 you can get selling your tickets might be more important to you now than one day in Tampa," Pate said.
According to LiveStub.com, the average price for a ticket has slumped since Jan. 4, dropping to $4,607 from $6,036. "It always going to happen that there's a drop in prices around now, but such a dramatic decline has a lot to do with the economy," said Michael Hershfield, CEO of LiveStub.com.
"Demand has decreased and the supply is still there in the market," he said. "People just can't afford to go down there."
Plus, many companies have either severely curtailed their entertainment spending for the Super Bowl or have cut it out all together.
"What company wants to $1 million to rent a plane and fly down their top clients," Hershfield said. "You can't justify that on your bottom line right now. There are external forces that go far beyond the sports world."
The economy is not all to blame. If the battle is going to be fought by teams that don't generate enthusiasm in more than their own back yard, ticket prices will suffer. Last year's match between legacy teams the Giants and the Patriots was loaded with anticipation from flocks of fans in two large cities, New York and Boston, as well as followers in most other parts of the country.
Same was true for the Bears and the Colts, both considered major market teams.
While the Steelers make that list too, the Cardinals don't and they're storied history as a losing team hasn't helped their cause much. This is the first time in Super Bowl's 43-year history that the Cardinals have made it to the game.
StubHub said the lighter demand for tickets has generated a lot of sales on its site, making it the highest-grossing event in company history. With the average price more than 40% below last year's cost, StubHub has sold more than double the amount of tickets this year compared to this time last year.
Hershfield believes that tickets could go for face value as soon as Friday or Saturday unless demand mysteriously picks up. "Ultimately this is great for fans because they can actually get tickets," he said. "In years past there wasn't a chance."
Jennifer Waters is a MarketWatch reporter, based in Chicago.