Comments for Sports Biz by Senno http://sennosportsbiz.wordpress.com Rumblings in the world of sports business and sports media. Mon, 02 Nov 2009 14:39:28 +0000 http://wordpress.com/ hourly 1 Comment on OptionIt Allows Teams to Combat Secondary Market by TomMatix http://sennosportsbiz.wordpress.com/2009/10/05/optionit-allows-teams-to-combat-secondary-market/#comment-600 TomMatix Mon, 02 Nov 2009 14:39:28 +0000 http://sennosportsbiz.wordpress.com/?p=451#comment-600 I have used OptionIt as well and I have to say I had a completely different experience then the person who calls option it a rip-off. First of all I think that this statement posted on the OptionIt web site makes things pretty clear "The amount you pay to exercise your option is in addition to your initial option purchase. For example, if you purchase an option for "2 Glass Seats plus 1 Zamboni Ride" you would pay $150. If you exercised your option, you would pay an additional $750, meaning the total amount paid would be $900 (please note that for Zamboni Rides, only one person can ride)." Option price + face value = ticket price I know there are three pieces to this puzzle but I believe they fit together pretty easily. The game I purchased options for I have already been in attendance so I thought it best to just use a current market value and availability for my example. As of this morning 11/02/09 on OptionIt there is a option available for a Ravens Ticket on the Ravens Pittsburgh game on 11/29/09 (ticket sec 527 row 31 seat 11) with a option price of 89.$ for a face value ticket of 95.$ dollars. So 89.$ + 95.$ = 184.$, then the primary ticket provider charges a convenience charge and a processing fee that adds up to roughly 15% of the face value of the ticket, that is 15% of 95$ = 14.25$ so option value 89$ + face value 95$ + fees 14.25 = final price of 198.25. Now if go over to a very large secondary market like stubhub we find that in sec 527 for that game there are three tickets available the least expensive being 259$ for ticket sec 527 row 27 seat ? (No seat # provided). So 259$ + 10% service fee 25.9$ = 284.9 final ticket price. Well my OptionIt ticket would end up 86.65 less than stubhub or roughly 30% less, I will gladly pay 30% less from one website to the other on something I want, that’s just good comparative shopping makes a lot of sense to me. I do feel for the guy who had a difficult experience, but come on 30% less is great. Please don't stop what you’re doing OptionIt I will be gratefully using that website over and over again. I have used OptionIt as well and I have to say I had a completely different experience then the person who calls option it a rip-off.
First of all I think that this statement posted on the OptionIt web site makes things pretty clear
“The amount you pay to exercise your option is in addition to your initial option purchase. For example, if you purchase an option for “2 Glass Seats plus 1 Zamboni Ride” you would pay $150. If you exercised your option, you would pay an additional $750, meaning the total amount paid would be $900 (please note that for Zamboni Rides, only one person can ride).” Option price + face value = ticket price
I know there are three pieces to this puzzle but I believe they fit together pretty easily. The game I purchased options for I have already been in attendance so I thought it best to just use a current market value and availability for my example. As of this morning 11/02/09 on OptionIt there is a option available for a Ravens Ticket on the Ravens Pittsburgh game on 11/29/09 (ticket sec 527 row 31 seat 11) with a option price of 89.$ for a face value ticket of 95.$ dollars. So 89.$ + 95.$ = 184.$, then the primary ticket provider charges a convenience charge and a processing fee that adds up to roughly 15% of the face value of the ticket, that is 15% of 95$ = 14.25$ so option value 89$ + face value 95$ + fees 14.25 = final price of 198.25.
Now if go over to a very large secondary market like stubhub we find that in sec 527 for that game there are three tickets available the least expensive being 259$ for ticket sec 527 row 27 seat ? (No seat # provided). So 259$ + 10% service fee 25.9$ = 284.9 final ticket price. Well my OptionIt ticket would end up 86.65 less than stubhub or roughly 30% less, I will gladly pay 30% less from one website to the other on something I want, that’s just good comparative shopping makes a lot of sense to me. I do feel for the guy who had a difficult experience, but come on 30% less is great. Please don’t stop what you’re doing OptionIt I will be gratefully using that website over and over again.

]]> Comment on OptionIt Allows Teams to Combat Secondary Market by OptionIt is a ripoff http://sennosportsbiz.wordpress.com/2009/10/05/optionit-allows-teams-to-combat-secondary-market/#comment-598 OptionIt is a ripoff Mon, 02 Nov 2009 00:08:52 +0000 http://sennosportsbiz.wordpress.com/?p=451#comment-598 Mr. Mastalir, You must have me confused with another dissatisfied customer as I never spoke with anyone from your company by phone. Perhaps you'd like to publicly offer a justification for charging a $22.00 (actually I believe it was $22.50) service charge on top of the $150.00 fee for the option of spending another $156. Isn't 100% of the face value enough!? Your representative suggested (by email) that I attempt to sell the tickets elsewhere. Who is going to pay $382 for a pair of $78.00 tickets? People are hurting in this country and they are tired of being ripped off. You have an interesting concept but ought to re-examine your business model. How long can you sell second-rate regular season tickets at 100% markup(with a 15% service fee tacked on as well)? Eventually, even people with money to burn are going to get better seats for less in the secondary market. Are you not trying to capture that secondary market? In the meantime, I'll continue to spread the warning as best I can. There are bound to be more like me out there. It's just a matter getting out the word. Mr. Mastalir,

You must have me confused with another dissatisfied customer as I never spoke with anyone from your company by phone. Perhaps you’d like to publicly offer a justification for charging a $22.00 (actually I believe it was $22.50) service charge on top of the $150.00 fee for the option of spending another $156. Isn’t 100% of the face value enough!?

Your representative suggested (by email) that I attempt to sell the tickets elsewhere. Who is going to pay $382 for a pair of $78.00 tickets?

People are hurting in this country and they are tired of being ripped off. You have an interesting concept but ought to re-examine your business model. How long can you sell second-rate regular season tickets at 100% markup(with a 15% service fee tacked on as well)? Eventually, even people with money to burn are going to get better seats for less in the secondary market. Are you not trying to capture that secondary market?

In the meantime, I’ll continue to spread the warning as best I can. There are bound to be more like me out there. It’s just a matter getting out the word.

]]> Comment on OptionIt Allows Teams to Combat Secondary Market by Mark Mastalir http://sennosportsbiz.wordpress.com/2009/10/05/optionit-allows-teams-to-combat-secondary-market/#comment-597 Mark Mastalir Sun, 01 Nov 2009 23:17:02 +0000 http://sennosportsbiz.wordpress.com/?p=451#comment-597 Sorry you did not have a good experience-- we try to make our website as clear as possible. What you failed to mention is we spoke on the phone and once I explained everything to you, you seemed to be satisfied and clear about how the system works. Being a season ticket holder, I'm sure you know that tickets are incredibly difficult to come by, and that tickets on the secondary market sell for far more than face value, particularly for the Penguins game. Using OptionIt, the option premium plus the face price of the ticket is significantly less than the secondary market. As for the service fee, we do not charge that. It is charged by the team's primary ticketing provider, which is also stated clearly on our website. Sorry we did not make things clear enough for you and that you can't be satisfied. Sorry you did not have a good experience– we try to make our website as clear as possible. What you failed to mention is we spoke on the phone and once I explained everything to you, you seemed to be satisfied and clear about how the system works.

Being a season ticket holder, I’m sure you know that tickets are incredibly difficult to come by, and that tickets on the secondary market sell for far more than face value, particularly for the Penguins game. Using OptionIt, the option premium plus the face price of the ticket is significantly less than the secondary market.

As for the service fee, we do not charge that. It is charged by the team’s primary ticketing provider, which is also stated clearly on our website.

Sorry we did not make things clear enough for you and that you can’t be satisfied.

]]> Comment on OptionIt Allows Teams to Combat Secondary Market by OptionIt is a ripoff http://sennosportsbiz.wordpress.com/2009/10/05/optionit-allows-teams-to-combat-secondary-market/#comment-596 OptionIt is a ripoff Sun, 01 Nov 2009 04:26:01 +0000 http://sennosportsbiz.wordpress.com/?p=451#comment-596 The manner in which OptionIt's website is designed is at the very least confusing and arguably deceptive. I made a purchase believing that I would (if I chose to exercise) pay the option price, then the difference between the option price and the advertised face value. What I was mistakenly getting myself into was purchasing two tickets with a face value of $78 each for a total of $382. When I was referred to the ticketmaster website to pay the balance I was certain there had been a billing error. Not only did I pay $150 for the option of spending another $156, OptionIt had the nerve to tack on a $22.00 "service fee" as well. I emailed OptionIt for clarification and the response was a terse reference to the Terms of Service. I asked how I could go about selling my option and was told it was too late because I had already attempted to exercise it. I'll be sending a letter of complaint to the SJ Sharks and hope I get some TV time while trying to enjoy my $382 tickets wearing my "OptionIt is a ripoff T-shirt". The manner in which OptionIt’s website is designed is at the very least confusing and arguably deceptive. I made a purchase believing that I would (if I chose to exercise) pay the option price, then the difference between the option price and the advertised face value. What I was mistakenly getting myself into was purchasing two tickets with a face value of $78 each for a total of $382. When I was referred to the ticketmaster website to pay the balance I was certain there had been a billing error. Not only did I pay $150 for the option of spending another $156, OptionIt had the nerve to tack on a $22.00 “service fee” as well. I emailed OptionIt for clarification and the response was a terse reference to the Terms of Service. I asked how I could go about selling my option and was told it was too late because I had already attempted to exercise it.

I’ll be sending a letter of complaint to the SJ Sharks and hope I get some TV time while trying to enjoy my $382 tickets wearing my “OptionIt is a ripoff T-shirt”.

]]> Comment on OptionIt Allows Teams to Combat Secondary Market by Mark Mastalir http://sennosportsbiz.wordpress.com/2009/10/05/optionit-allows-teams-to-combat-secondary-market/#comment-588 Mark Mastalir Thu, 08 Oct 2009 22:38:20 +0000 http://sennosportsbiz.wordpress.com/?p=451#comment-588 Tom, Really nice of you to say that. We are getting good results and traction with our business model and have been embraced by fans. If fans can't get tickets via the primary marketplace and are forced to buy from the secondary, they much rather pay an option premium with the knowledge that the revenue is going to the team that is putting the product on the court/field/ice, etc. And the flexibility and convenience is something that has actual value for the fan, as you point out. Regards, Mark (CEO, OptionIt) Tom,

Really nice of you to say that. We are getting good results and traction with our business model and have been embraced by fans.

If fans can’t get tickets via the primary marketplace and are forced to buy from the secondary, they much rather pay an option premium with the knowledge that the revenue is going to the team that is putting the product on the court/field/ice, etc. And the flexibility and convenience is something that has actual value for the fan, as you point out.

Regards, Mark (CEO, OptionIt)

]]> Comment on OptionIt Allows Teams to Combat Secondary Market by TomHill http://sennosportsbiz.wordpress.com/2009/10/05/optionit-allows-teams-to-combat-secondary-market/#comment-586 TomHill Tue, 06 Oct 2009 03:27:01 +0000 http://sennosportsbiz.wordpress.com/?p=451#comment-586 I think the sporting Industry will find that using a system such as optionIt not only will allow the team to capture secondary market revenues but also will ingratiate themselves with fans by empowering the fan with the flexibility to fine tune the risk of purchasing tickets with a smaller up front cash outlay. I think that everyone at one time or another has been stuck on tickets they bought for friends, buying the option not the ticket and providing a market place for it gives the fan an easy out in case some pass on the event come game time. The guys at optionIt are simply providing a service that has already proven itself a thousand times over in the financial world. Recently a wonderful paper was written on just this subject by University of North Carolina's Kenan-Flagler Business School entitled "Consumer Options: Theory and an Empirical Application to a Sports Market," I will leave a link to it for all that are interested. I think this is the tip of the iceberg on this optionIt story. http://newsinfo.iu.edu/news/page/normal/10464.html I think the sporting Industry will find that using a system such as optionIt not only will allow the team to capture secondary market revenues but also will ingratiate themselves with fans by empowering the fan with the flexibility to fine tune the risk of purchasing tickets with a smaller up front cash outlay. I think that everyone at one time or another has been stuck on tickets they bought for friends, buying the option not the ticket and providing a market place for it gives the fan an easy out in case some pass on the event come game time. The guys at optionIt are simply providing a service that has already proven itself a thousand times over in the financial world. Recently a wonderful paper was written on just this subject by University of North Carolina’s Kenan-Flagler Business School entitled “Consumer Options: Theory and an Empirical Application to a Sports Market,” I will leave a link to it for all that are interested. I think this is the tip of the iceberg on this optionIt story.
http://newsinfo.iu.edu/news/page/normal/10464.html

]]> Comment on Ticket Sales Problems Magnified in NHL by mjsenno http://sennosportsbiz.wordpress.com/2009/09/23/ticket-sales-problems-magnified-in-nhl/#comment-578 mjsenno Wed, 23 Sep 2009 13:55:10 +0000 http://sennosportsbiz.wordpress.com/?p=441#comment-578 Even if ESPN does not need it (technically they no longer "need" anything), the NHL actually needs them to push the brand and indirectly help sell tickets and increase media rights. Versus does well by the league, but pays a modest fee (relative to other leagues) and doesn't move the needle in a meaningful way for other revenue sources. The NBA idea is creative, but I don't think they have enough overlap - and the NBA probably does not want to associate with the NHL. Further, most NBA teams own the arena now, or at least want to. The NHL Network might as well not even exist, or go strictly online. Distribution and quality are poor - not a good mix. Even if ESPN does not need it (technically they no longer “need” anything), the NHL actually needs them to push the brand and indirectly help sell tickets and increase media rights. Versus does well by the league, but pays a modest fee (relative to other leagues) and doesn’t move the needle in a meaningful way for other revenue sources.

The NBA idea is creative, but I don’t think they have enough overlap – and the NBA probably does not want to associate with the NHL. Further, most NBA teams own the arena now, or at least want to.

The NHL Network might as well not even exist, or go strictly online. Distribution and quality are poor – not a good mix.

]]> Comment on Ticket Sales Problems Magnified in NHL by Ian http://sennosportsbiz.wordpress.com/2009/09/23/ticket-sales-problems-magnified-in-nhl/#comment-577 Ian Wed, 23 Sep 2009 12:57:38 +0000 http://sennosportsbiz.wordpress.com/?p=441#comment-577 The NHL needs ESPN, but ESPN has no need for the NHL. They got higher ratings during the lockout for timeslots formerly operated by NHL games. I think that Bettman should actually pursue a merger of business operations with the NBA, and negotiate TV and arena contracts together. I highly doubt that would ever happen, though. Another way to help the NHL is for Vs. to be more relevant. As you mentioned in your Vs. article, Comcast has the resources to make it a true competitor to ESPN. If I watched Vs. more often, I'd know when their NHL games were on. And back to NHL network. The fact that NHL on the Fly is not in HD is an insult. That alone would move mountains. The NHL needs ESPN, but ESPN has no need for the NHL. They got higher ratings during the lockout for timeslots formerly operated by NHL games.

I think that Bettman should actually pursue a merger of business operations with the NBA, and negotiate TV and arena contracts together. I highly doubt that would ever happen, though.

Another way to help the NHL is for Vs. to be more relevant. As you mentioned in your Vs. article, Comcast has the resources to make it a true competitor to ESPN. If I watched Vs. more often, I’d know when their NHL games were on.

And back to NHL network. The fact that NHL on the Fly is not in HD is an insult. That alone would move mountains.

]]> Comment on Activist Owners Good For Sports by mjsenno http://sennosportsbiz.wordpress.com/2009/09/10/activist-owners-good-for-sports/#comment-571 mjsenno Thu, 10 Sep 2009 12:52:23 +0000 http://sennosportsbiz.wordpress.com/?p=429#comment-571 I think market conditions would force the move almost immediately - in this case, Hamilton or WInnipeg would do far better than Arizona. I think market conditions would force the move almost immediately – in this case, Hamilton or WInnipeg would do far better than Arizona.

]]> Comment on Activist Owners Good For Sports by Ian http://sennosportsbiz.wordpress.com/2009/09/10/activist-owners-good-for-sports/#comment-570 Ian Thu, 10 Sep 2009 12:50:40 +0000 http://sennosportsbiz.wordpress.com/?p=429#comment-570 Plus the Jets can renew their West Side Story rivalry with the Sharks! Plus the Jets can renew their West Side Story rivalry with the Sharks!

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