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Richard Rider

San Diego Chargers want to RAISE average ticket prices $100 a game

Here’s an interesting exercise in NFL economics. Some “sports economist” referenced in the otherwise excellent U-T article below (Gee, I wonder who funds his academic chair?) has projected that a new San Diego stadium will mean $50 million more annually for the Chargers.

Put aside for the moment the biased nature of this “study.”  Suppose it’s true.
RIDER QUESTIONS:  Where does the $50 million come from?

A. From increased stadium revenues that go to the Chargers.

Is the $50 million a “net to the Charger (and visiting NFL teams)” figure?

A. Apparently so.

Who ponies up the extra revenues?

A. Corporations renting sky boxes and fans buying tickets.

How many games a year?

A. 8 regular season games.  It’s doubtful the new stadium would materially increase revenue for the two low-interest exhibition games.

Will the new stadium have more seats, or less?

A. Every projection is that the Chargers want FEWER seats in the new stadium.

How many people will go to the average game in the new stadium?

A. Hard to say.  But in a good year, let’s say 62,500 a game.

How much will each game benefit the Chargers and the NFL?

A. Do the math.  $50 million additional revenue divided by 8 games = $6.25 million a game.

How much will this increased cost be for the fans?

A. Uh oh.  $6.25 million divided by 62,500 fans is $100 per fan (including skybox revenue).  No, not $100 a ticket.  ONE HUNDRED DOLLARS ***MORE*** per average ticket/fan.  Per game.  EVERY game.

So, let me get this straight.  The NFL wants San Diego to spend hundreds of millions of taxpayer dollars on a new stadium with fewer seats so the Chargers can jack up ticket and skybox prices?

A. Well, yeah.

Does this new stadium make any economic sense for anyone outside of the NFL?