Jets, Giants Had No Choice With PSL Plans

One team is coming off an improbable Super Bowl championship, the other recently acquired a sure fire Hall of Fame quarterback. They play in the biggest media market in the country and will jointly open a $1.6B, presumably sparing no expense to give fans a world class experience. Jet and Giant fans can complain all they want about PSL’s and ticket prices, the teams made the right decision – and the fans could have had it much worse.

Ownership only rattled season-ticket holders with this plan. Imagine the alternative, asking for government funding to help offset stadium costs. The entire metropolitan area would wage war on Woody Johnson, and the Tisch/Mara ownership team. $1.6B stadiums need outside funding. Ownership should be commended by passing the buck onto the people who use the facility, rather than everyone in the area, many of whom careless about football. We all pay gym memberships and apartment rent, look at this as part of the cost to use the facility, and those who use it should pay it.

Simple knowledge of supply and demand proves the Jets and Giants are NOT overcharging fans. If that was the case, the stadium would not sell out. Not only will every last seat license be scooped up immediately, each team will have a waiting list for the right to buy a PSL for season tickets. With demand high, successful companies will increase prices until reaching an equilibrium. While football is not a traditional product, if the teams need money they have every right to raise prices to cover expensives. The loudest protest is not buying the PSL, which does not appear likely.

In fact, NY football fans should consider themselves lucky. Ticket prices for games, on top of the PSL, will increase, but still pale into comparison to season ticket packages at the new Yankee Stadium and Citi Field. Tickets for football and baseball are roughly equivalent (with some generous rounding) per game, making baseball tickets for 162-games exponentially more expensive than an 8-game plus a preseason or two football package. Toss in the cost of the PSL and its still cheaper than baseball. Want to argue this is football, not baseball, check out the Dallas Cowboys PSL costs. Small countries may struggle to afford seats.

Unlike game tickets, PSL’s are investments, not sunk costs. Fans can sell their seat to a rabid fan on the waiting list for any price the market yields, likely much higher than the original purchase price since demand increases once all the PSL’s are sold.

Comparing the two plans is moot since fans seem to take issue with the whole concept, not the fine details of its implementation. However, the Jets earn higher marks for PR by offering seats without PSL costs, and will yield more revenue by using an auction for its best seats. The auction will reveal how fierce demand for the tickets are, and if past NY football ticket performance is any indication, expect these seats to blow past the $25,000 high water mark, proving the fans actually have a good deal.

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