In an blog post a couple of days ago, I made a comment discussing the fact that two of the major baseball franchises in the US were having trouble in selling seats in their new stadiums. In that post too, I suggested that the two teams had probably over-estimated the prices for the seats and would be compelled to reduce those prices and ensure that they are taken up. A follow-up article in the NYT by Richard Sandomir confirms that the Yankees have made adjustments to their ticket prices in response to the fact that 15% of seats that remain unsold.
The rather quick response has involved the reduction of prices for season tickets by a range of 35-50% together with the option of refunds. However for the more expensive spots, the franchise has provided a one extra seat for every ticket held. essentially, this amounts to a 50% price cut even though the holders of these prime tickets cannot claim refunds. All one hopes is that they would allow the ticket holders to reassign or trade these extra tickets. After all, the franchise needs to fill the stadium.It is also interesting that the economists advising on this matter got it spot on and agreed with the suggestion in the blog post, by arguing for temporary reduction in prices because the recession will indeed pass and the demand will pick up again.
What is the Mets waiting for?
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