Issues, Stadiums

Ticket Resale Market Preys Upon Sports Fans

No Comments 03 March 2010

D10-TIX_SU_B_^_SUNDAYOn Tuesday, the four men responsible for the former ticket resale outlet, Wiseguys Ticketing, were indicted. For three years, these hackers purchased large amounts of premium seats at events, such as the 2006 Rose Bowl and the 2007 MLB playoffs. Wiseguys then sold their inventory to online ticket brokers at an increased price. The ticket brokers then sold the tickets on websites such as StubHub and TicketsNow.

By taking away the fans’ opportunity to purchase those seats directly from Ticketmaster or mlb.com, fans were instead forced to look to those ticket resale outlets to buy what they needed at a significant markup in addition to the increased price paid by those brokers.

So the fans got screwed — twice.

However, removing the Wiseguys from the online ticket purchasing game is only one hurdle facing sports fans in the technological age.

In a recent article in the Sports Business Journal, the president of StubHub, Inc. raised some issues of accelerating concern for sports fans in this new world of paperless ticketing. “People often talk about the virtues of paperless ticketing, and there are some, but there are also two main negatives: It takes away fan rights and eliminates resale competition,” Chris Tsakalakis said. “And with no competition, you usually get a lower level of service and higher prices.”

empty_seats_sports_ticketsOne of the advantages of paperless ticketing is the fan access to the tickets. Secondary ticket markets can not resell paperless tickets, eliminating ticket broker interest. But when plans change or a fan wants a last minute ticket, paperless tickets keep fans from re-selling tickets they can no longer use. Paperless requires a picture ID and the purchasing credit card to be shown at the gate to the event, prohibiting ticket transfer.

Penn State University went paperless for 2009 football season tickets in the student section. Ticketmaster made reselling possible through their own website, but the fine print showed that it only worked if both parties had valid Penn State student id numbers. There are also limits on how many games can be resold and at what price.

Paperless ticketing is a great way to eliminate scalpers. But at what cost to the fan?

Blog, Issues, Stadiums

San Diego Mayor Threatens Dry City with Stadium Plans

No Comments 15 February 2010

newSDstadium02San Diego appears to be the next ‘public funding for stadiums’ victim as Mayor Jerry Sanders promised to use taxpayer monies to build a new  Chargers stadium at the expense of a nagging concern in SoCal: water.  There’s not enough of it, and the situation is getting worse.

waterLeave it to this politician to throw the region’s priorities out of whack. While a brand new, shiny stadium would be fantastic for high-income fans, it is the rule rather than the exception that ticket prices will climb along with parking costs and concessions in the new stadium. And it’s no stretch to claim that new stadiums consistently provide a bad ROI.

It is important to note that many politicians are fighting the good fight across America, but Mayor Sanders has earned the SFC stamp of disapproval with his vows to misuse San Diego residents’ hard-earned cash for a new stadium over the most simple and necessary element to our lives.

Follow this story on our San Diego page, JOIN the Coalition, and if you live in one of the most beautiful towns in the country but still get pissed off about this stuff, start the San Diego chapter of SFC today. We need to stand up and let our representatives know where we stand on the issues to make a difference.

Blog, Issues, Stadiums

SFC Board Member Dave Zirin on KALW in San Francisco

No Comments 10 February 2010

Listen to the interview on Your Call on KALW featuring SFC board member and sports writer Dave Zirin as well as prolific author and professor Andrew Zimbalist by going to our media page or clicking here.

The topic of conversation is public funding for stadiums and the need for an organization like the SFC to fight for sports fans.

Read the Your Call blog here.49ers-stadium_NEW

Read Dave Zirin’s columns here.

Blog, Issues, Stadiums

City Council Votes to Lie to Voters on 49ers Stadium Funding

1 Comment 10 February 2010

SFStadiumIt’s conceivable that all Santa Clara residents were not tuned in last night to their City Council’s 4-3 vote to include language on the ballot misrepresenting the upcoming 49ers stadium funding project. On June 8th, many Santa Clara residents will decide whether to approve a $937 million stadium project for their hometown NFL team thinking that the phrase “no new taxes for residents” actually means NO NEW TAXES FOR RESIDENTS.

The reality is something altogether different.

If approved, the measure being pushed by Santa Clarans for Economic Progress – a front group for the 49ers’ and NFL’s push to use taxpayer funds for new stadium construction in San Francisco – would seek completion of the new football stadium in 2014 with hopes of hosting the all-important Super Bowl; that golden carrot at the end of the stick. 

The controversial language which has 3 out of 7 Santa Clara City Council members so frustrated, and rightfully so, fails to “mention the $114 million package of public contributions to the project, including redevelopment money and a special tax on guests in the city’s eight hotels.” What’s $114 million between friends? 

Wait, there’s more.  The ‘no new taxes for residents’ line also rings untrue when one digs a little deeper and notices that the city plans to use stadium construction bonds in the range of $330 million hoping that they’ll make their money back on stadium naming rights, personal seat licenses, and a ticket surcharge.

Let’s pick this apart piece by piece. 

Stadium Naming Rights:

In the midst of a recession, banking on stadium naming rights is not a smart business move.  Have you noticed how thin Sports Illustrated is becoming as ad dollars dry up? Stadium naming rights are no different. Citifield tried to renegotiate their deal, but the Mets weren’t having it.  Can you imagine any corporation with the cash to put their name on this building will be ponying up similar cash for this deal?  The answer is no.  It’s a naming rights buyers market.

Personal Seat Licenses:

The price you pay to pay for season tickets is outrageous. Leave it to owners to think up new schemes to bilk sports fans for more money. Seriously?  You mean I have to pay to pay? It’s not good enough that you spent 10 years on the waiting list dreaming of having your own seats 8 games a year.  You are actually required to pay these seat licenses in advance of the season ticket bill that lands in your mailbox like clockwork once a year.

Ticket Surcharge:

There is not a better description of this charge passed directly on to sports fans than the word ‘tax’. So, the city and the team join together to build this new stadium, and tickets are, in turn, more expensive. While it is important to recognize where each penny of the total dollar figure for one 49ers ticket goes, the bottom line is that tickets will be more expensive. 

To wrap up this dissection of the additional $330 million on the tax payers backs, it is evident that funds coming from naming rights will be slim and the other two categories of ‘taxes’, personal seat licenses and ticket surcharges, will need to be expanded to make up the difference.  So, we’re not just talking about increases for inflation here. Get ready to pay to pay, and then, pay some more.

Finally, it is prudent to do the math. $117 million of redevelopment money and hotel taxes plus $330 million of construction bond funds add up to $447 million. If the stadium contruction costs stay within the $937 million budget (the team is supposed to foot the bill on any shortcomings of funding although it has been reported that there are “loopholes in this component”), only 47.7% of the budget will fall on the tax payers’ shoulders.

That’s all. Not exactly ‘no new taxes for residents’.

If recent history tells us anything, the 49ers are willing to lie to get their lies on the ballots. After the vote to approve the language, it cost the city another $390,000 to get the measure on the ballot.

It sounds like many Santa Clarans don’t know what their getting themselves into. Nor will they know any better if they walk into the voting booth without doing some research. Now, more than ever, we need SFC members to get the word out on the ground in San Francisco.

Thank goodness there are already boots on the ground in the form of Santa Clara Plays Fair fighting the misinformation campaign (see table below) through a mass email to residents explaining how the team’s campaign to deceive is succeeding. We need to keep up the fight through education, organization, and mobilization to protest sports stadium subsidies in San Francisco and across the country.

SF_REAL_Costs_Pie_Chart

Issues, Stadiums

Stadiums

No Comments 01 November 2009

If a sports venue is built with public funds, such funds must be tied to affordable seating throughout the venue and other benefits to the public. It’s not enough for local governments to commit to subsidize mammoth stadiums for billionaires in the name of gentrification. The bottom line is that low-income taxpayers will not only lack the ability to purchase tickets to the new stadium, but they will also lack the purchasing power at the concession stand, the parking lot, and all the plush new businesses encircling the newly constructed building. With tax-free stadiums, billionaire franchise owners often don’t lose a penny on the deal in the first year. The public pays to further enrich the wealthy, and when the going gets tough, the franchise moves to a new city. No longer will we be held hostage by sports franchises to build new stadiums on our own dime. Join the Coalition to create a more organized effort to fight back.

Read more on our Agenda page: http://www.sportsfanscoalition.org/agenda/#venue






About SFC

SFC is the American sports fan’s advocate in the D.C. public policy arena fighting for sports fans in every city across the country.

Sports Businesses, Leagues, and Universities are grasping for our cash left and right. Let's join together to keep their hands off our wallets unless and until we have a say in how that money is spent. Futhermore, we sports fans believe we should be able to watch our games, no matter how we get our media.

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