New York area Super Bowl making
an unexpected, quiet ripple in economy
After it was announced that Super Bowl XLVIII was going to
played at MetLife Stadium in the New York City area, many thought that it would
generate one of the priciest tickets in history. As of Thursday, Super Bowl tickets are
clocking in at a 12-year low. Why is this the case?
It’s not because of the football. For the third time in NFL
history, the Super Bowl features the NFL’s best offense in both yards and points
(Denver Broncos), against the NFL’s best defense in both yards and points
(Seattle Seahawks).
In this case, it’s all about economics, and the demand for
tickets. The “perfect storm” of geographic distance has combined with multiple seasonal
polar vortexes to create blizzard over the New York economy surrounding the
game. Although the game is sold out, thousands of tickets exist in secondary
markets such as StubHub and TicketExchange. This is where economists have
followed ticket demand and price.
On Jan. 21st, lower level tickets were going for $2,800, and by Jan. 24th,
prices were at $1,700. Overall, median ticket prices have dropped down
an additional $500 this week. Now, ticket brokers are hoping that the
millionaire-filled New York area market will help bail them out and purchase
many of the remaining half-priced tickets.
Ticket prices are not the only thing affected by the current
situation. New York area hotels are feeling the pinch as well. Many Seattle and
Denver fans are choosing not to travel and stay in New York to attend the game,
as the risk of having a cross-country flight delayed for multiple days is becoming
very likely, given the recent weather conditions.
Most Super Bowls in recent years have generated revenues in the 4 to 5 hundred million dollar range for the city in which the game is being played. Economists predict that New York will only receive a portion of that kind of profit this year. Although it is unlikely that the NFL will take a financial
hit from lower ticket prices, they are likely to rethink the idea of playing
the world’s most popular sporting event anywhere cold for quite some time.
Mark Sanders
Sources:
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