Showing posts with label baseball. Show all posts
Showing posts with label baseball. Show all posts

Tuesday, July 15, 2008

Why Major League Baseball Wants You to Use Stub Hub

My friend Andy in Chicago wanted to go to Cubs game on Friday, but tickets were sold out. Andy noticed on the Cubs website there was a link to StubHub a ticket reseller. Andy asked me why would the Cubs want to help ticket resellers?

First, the amount someone pays for a ticket will in part be determined if they can resell it. Most Cubs tickets were purchased months ago for anyone buying tickets there is always the possibility that something else could come up (sickness, visiting relatives) being able to resell the tickets makes them more valuable.

Second, purchasing tickets via other secondary sellers such as Craigslist and Ebay, there is always a possibility of a scam such as fake tickets. The Cubs or other baseball teams can verify that the seller does have season tickets and can transfer the ticket via e-mail to the second buyer. Eliminating the worry for a scam increases the value of the tickets and makes the tickets easier to resell.

Finally, StubHub is now the exclusive reseller of Major League baseball tickets after signing an agreement last year. Although the details are not disclosed. Stubhub makes about 20% for each ticket sold and is now paying some percentage of that fee to the baseball team. If you sell your ticket on Craigslist or Ebay the Cubs get nothing, but buy at StubHub they get something.

This story has a happy ending. Andy found cheap tickets getting standing room only tickets released at the box office a few hours before the game then moving to seats in the 2nd inning and the Cubs Won 3-1.

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Sunday, March 30, 2008

Life Begins on Opening Day: National Opening Day


Tonight I’ll be heading to the opening of the Washington Nationals new baseball park. I’ll leave aside my feelings for government funding of stadiums, and instead focus on some lessons learned from some of my favorite baseball games I have attended.

Best Game of All Time I have Attended: October 14, 2006 Tigers versus Oakland A’s ALCS Game Four

It was a magical season after years of futility the Tigers, my favorite team, had finally pulled it together, winning 95 games and making the playoffs for the first time in almost 20 years. Leading 3 games to none in a seven game series, barring Red Sox magic, the Tigers were going to the World Series, but I wanted to see it happen on that night when I had flown in from Wisconsin, my wife from DC, and my Dad driven from Columbus Ohio. It was one of those games, where after 2 innings the Tigers were down 3-0 and I felt like even after the Tigers tied it 3-3 they still were going to lose. I can’t do it justice with the 2 outs bottom of ninth type description, but when I realized Magglio’s fly ball had landed in the bullpen it was awesome.

Economic lesson learned fans like winning and homeruns. In a paper I’m writing with a Towson colleague, this appears to be true not just for major league teams, but also minor league teams. Watching a winning team is more fun and there is something about a homerun that brings such satisfaction.

June 24th, 2001 Baltimore Orioles and Chicago White Sox: First baseball game with my wife

Although my wife had been to a major league game before, she was really young and didn’t know much about the game. I taught her to keep score by recording plays, which she thought was like a lab notebook. Being a new baseball fan I told her a lot of stories that I had learned through my Dad or watching and listening to games growing up. For some reason I told her that it was traditional to get nachos in the sixth inning, I made this up but my wife likes nachos so she was willing to go along with the story. Now most sixth innings we get Nachos, they are a great complement to attending a baseball game.

Economic lessons: sometimes goods are complements eating nachos is a lot more fun watching a baseball game then when you are running a 5k race. Sometimes goods can substitute for each other instead of nachos you can have hotdogs, pretzels, or peanuts. The Nationals new ball park promises local food including Ben's Chilli Bowl half-smokes

At this point I’m not sure how many Major League Baseball games I have attended hopefully tonight will be up there with some of my other favorites (Cecil Fielder game tying roof shot, Prince Fielder’s first home run, a rainy day in Fenway watching 04 playoff highlights, Latin night at RFK). Each new year brings new possibilities and plenty of more games to attend.

Go Nationals!



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Monday, November 5, 2007

Hot Stove League

As I sit in a coffee shop next to a fire place my mind turns to hot stove league baseball. One favorite topic of the hot stove league is how best to insure that teams like Kansas City, Oakland, and Minnesota can compete with New York, Boston, and Chicago. Currently those teams with larger revenues make payments to teams with smaller revenues to insure a more even playing field. However, those teams do not always spend those extra payments on getting more players. A recent NY Times column suggests that those payments should be tied to attendance, specifically the percentage of seats sold by a given club. A few problems arise with this suggestion, not all stadiums are the same size. For example the Pittsburg Pirates’ PNC park sits 38,000 compared to 50,000 at the Colorado Rockies Coors field. In other words the Rockies could be at 80% capacity and sell more tickets than a 100% Pittsburg.
Instead of linking the payments to percent of capacity filled, perhaps linking them to attendance. One way would be to predict what expected attendance should be in a given city compared to similar cities. Although, I’m not sure that is the answer either. Teams might want to give experience to rookies, who in the short term might not play as well as experienced players, but might lead to better outcomes in a few years. Baseball Prospectus has done some great work modeling, when teams might want to make these tradeoffs.

Finally, on the day after two juggernaut NFL teams face each other (the Colts and Patriots being the Yankees and Red Soxs of the NFL even under the salary cap), we might wonder if imbalance is such a bad thing. One recent paper has suggested that lack of balance does not impact attendance.

Although I’m not opposed to anything that hurts the Yankees.


hat tip to Sports Guy Talking Crazy for the Article