Tuesday, March 16, 2010

Dissecting the Side-Screen Roll Since 2006

Season Ticket Renewals and the Marketplace

Posted by Kevin Arnovitz On April 20, 2009 at 8:32 pm

If you’re a full or partial season ticket holder to the Clippers, then you probably received the glossy renewal folder in the mail over the past week or so.  Prices have dropped for season ticket holders in some sections of Staples Center and have remained the same for others.  If you follow the team, you also know that the market value of a Clippers ticket has dropped precipitously in recent months, and the organization has been slashing prices to get people inside the building. For some season ticket holders who pay for their packages in full months before training camp, this is a source of agitation. Whether that agitation is justified depends on whether you perceive pro sports teams as public trusts or luxury items.

Not so long ago, if you wanted a ticket to a pro sporting event, you had a limited number of options. You could purchase season tickets, thereby assuring yourself a seat to every game, both regular and postseason. On game night, you could go down to the arena, walk up to the ticket counter and pay face value for a ticket. If the game was sold out and/or you wanted premium seats, you went underground and bought from a scalper.

Today, not only can you find seats on any number of general sites — Craigslist, Ebay — but online brokers like StubHub have changed the game entirely.  I can now legally sell my Dodgers tickets on Stubhub at market value, either above or below face value — the laws of supply and demand will dictate that.  Want to know the market value of a specific seat for a single game? Easy.

Whether they’re trying to unload $100 tickets for pennies on the dollar or implementing “dynamic pricing,” or hosting a Stubhub booth on their premises, pro sports franchises readily acknowledge that the market for their product is elastic.  A pair of seats that fetches $40 to a Tuesday night game against Sacramento might go for five times that on a Saturday night against the Lakers. The Clippers know that, and they know you know.

To those outraged that they’re consistently being asked to pay more than their tickets are worth, my advice is to negotiate.  Calculate the market value of your Clippers’ season tickets and offer that amount to your ticket rep.  If you hold a pair of $27 seats between the baselines in the first few rows of the upper bowl, you know those tickets aren’t worth more than $20 on the open market. Your first offer to the season ticket rep should be in the $1,650 range — well below the $2,376 the Clippers are  asking.  If you have friends or people in your section who approximate the value of their tickets similarly to you, then you should join together to enhance your purchasing power.

If the Clippers tell you that prices are fixed and non-negotiable, then you have a tough decision to make. If you cave, there’s no shame in that — so long as you acknowledge that you paid a premium for continuity, ritual, and the comfort of knowing you’ve got a seat if the Clippers happen to play meaningful basketball at some point. Don’t be outraged when the guy sitting next to you in March paid a quarter of the price for his seat. You value those things and he doesn’t.

My intention isn’t to needle the Clippers, or their sales team who, in my experience, are polite, responsive professionals.  They’re not trying to rip you off any more than the home seller asking $529,000 for a $400,000 house.  This isn’t about kicking the organization while it’s down.  If you have season tickets to the Nuggets, Magic, Hawks, Bobcats, Dodgers, Padres, Seahawks, Flames, LA Phil, or Geffen Playhouse, the same principles should apply.  We negotiate home purchases, car leases, and gym memberships. The bank that holds my mortgage just went into receivership, and my assumption is that the FDIC will turn around and negotiate the sale of my loan at a discount. We’re in a recession — everything is negotiable.  There’s no reason why season ticket packages to professional sporting events shouldn’t be subject to the same rules of the free market.  The only reason they wouldn’t be is if sports fans behave irrationally — and who’d believe that?

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25 Responses

  1. eastie Rich Said,

    Makes perfect sense, if your not in Clipper management. I’ve been going between pissed off and thankful over the past week or so. I haven’t received my renewal package from the Clippers and I’m not surprised. Once they sold my seats out from under me. I’ve sent exactly one e-mail and received no response. I can’t see myself chasing the Clippers to spend my money. Didn’t you say something about them being professional? Not in my experience.

    So, I guess I’ll remain pissed off, and I guess I’ll be happy when I don’t blow 10k on another season of tickets. I’ll miss going to the games, but I can’t rationalize supporting this franchise any longer.

    If only there were another team besides the Lakers to support.

    [Reply]

    Long-suffering Clippers Fan

    Long-suffering Clippers Fan Reply:

    I hear you Eastie. This team (it’s effort or should I say lack thereof) has broken my heart and I don’t want to go through another year of heartache, disgust and disappointment. But I hate the Lakers. What’s a disgruntled Clipper fan to do?

    I’ve been of the fan of the Clippers since the Danny Manning-Benoit Benjamin-Ken Norman years (dammit that was 20 years ago!), was a STH for 4 of those years, and I can’t (won’t) go through another year of heartache like this one has been.

    But what (if anything) will change? (see my post below) I think I will miss Ralph and Mike the most of all.

    [Reply]

    Posted on April 20th, 2009 at 9:20 pm

  2. Q.D. Said,

    Only complaint is the clippers suck, but I love the feel of watching a game live and can’t beat the clipper prices.

    What to do, what to do with my tickets

    [Reply]

    Posted on April 20th, 2009 at 10:35 pm

  3. Gordon for President Said,

    If every true fan promised not to buy or renew this season, that would send a message. Non-violent protest…it’s worked before.

    [Reply]

    eastie Rich

    eastie Rich Reply:

    I must be in the minority, but if a sizeable percentage of STH are treated like I am/have been, then theres going to be a huge renewal drop off.

    [Reply]

    bpr

    bpr Reply:

    You are not in the minority, eastie. I sit in Row B, have for nine years. I cannot believe how completely non-valued I am by the team. KA makes some good points, but as far as I’m concerned, it’s too late for this team. The renewal package said if I renewed in full before the deadline (which I did every year, stretching back for more than 10 years)…I’d get…wait for it… my choice of a jersey with Gordon’s, Thornton’s, or wow, what a value, BD’s name on it. I’ll keep the five figures this year I used to drop, thanks.

    [Reply]

    eastie Rich

    eastie Rich Reply:

    Now that’s some real incentive there.

    [Reply]

    Posted on April 20th, 2009 at 11:16 pm

  4. ACD Said,

    I’ve been a ticket holder for 9 years… and i am probably not going to renew this year. I literally could not give the tickets away this year when i couldnt make it out to the games.

    For all the money i’ll save, i’d rather buy individual game tickets to games i really want to see (not milwaukee or minnesota or sacramento)… and dont forget the “get screwed” pre-season games that should be given away for FREE.

    [Reply]

    Posted on April 21st, 2009 at 8:26 am

  5. Sam Mays Said,

    I stopped buying season tickets to the Clippers 12 years ago. I get to about a half dozen games a year, either getting free tickets from friend’s with company tix, or bought through a ticket broker, often paying about half face value… This year I decided to go to a game late in the day. I ordered some decent tickets and when I called to confirm, the broker improved my tickets by about ten rows with no extra charge. It was like we were old buddies… He couldn’t get anyone else to buy them and it was late in the day so what the hell… I don’t miss not having season tickets in the least…

    The TV is fine.

    [Reply]

    Posted on April 21st, 2009 at 8:28 am

  6. Frank The Tank Said,

    Yea why purchase tickets if Mike Dunleavy is comin back they’ll realize that they will not have a lot of people buyin tickets in the long run forcin Clipper ownership to fire Dunleavy. Good teams always have sellout crowd like the Lakers but for the Clippers somethin has to change other wise we wont have people watchin our games on tv or our home games.

    [Reply]

    Posted on April 21st, 2009 at 9:48 am

  7. John R. Said,

    Hmm, if I’m timing the bottom I feel like I should negotiate the best price available and try to get back in this year. We’ll see what the best price is. It won’t be necessarily easy to resell the tickets this year unless something amazing happens, but I would assume prices will go up next year at this time.

    Let’s go Clippers’ Sales Team, Let’s go.

    [Reply]

    Posted on April 21st, 2009 at 10:44 am

  8. FireDunleavy .com Said,

    I think they had 4 pre-season games this year. That really hurts for lower bowl tickets. I think only rows 15 and up get discounts. Like they will ever be able to fill up 15 rows in the lower level this year.

    I really can’t see anyone renewing tickets. The main point of season tickets is to get tickets below face value because you’re buying in bulk. For most games I could get great 175 tickets for $40-60. Clippers even had promotions $175 tickets for $25. Even free tickets one time. I guess the Clippers get money from the luxury boxes because people buy them for the Staples center and some of that money goes to the Clips.

    [Reply]

    Posted on April 21st, 2009 at 2:33 pm

  9. neiljphx Said,

    I can’t see getting the $4500 pair from last year in this economy even if they drop it 1/3rd. It was a stretch for me last year and the product sucked so….. no thanks. I’ll just stub hub one or two games a month for the kids aginst the better teams and go with that.

    [Reply]

    Posted on April 21st, 2009 at 3:34 pm

  10. KD Said,

    We are unceasingly lucky that a giant like Kevin Arnovitz has decided to spend a good portion of his life writing about professional basketball.

    [Reply]

    Posted on April 21st, 2009 at 4:42 pm

  11. bongstradamus Said,

    at least with lakers season tickets you can go to every single regular season game and then make the cost of your season tickets back by selling the playoff games. Maybe even get to see them play in the Finals.

    [Reply]

    Posted on April 21st, 2009 at 6:25 pm

  12. d.han Said,

    Great post. I may have a chance to rejoin you in 318, newborn and all…

    [Reply]

    Posted on April 21st, 2009 at 8:50 pm

  13. Long-suffering Clippers Fan Said,

    Two things are clear: as long as DTS is making money on this franchise (and he is) there is no reason for him to change anything. The team will probably be the same next year (barring draft picks and maybe a trade that doesn’t cost him anything) and MDSr will be here throughout his contract (sorry MDSr haters).

    Also, DTS has NEVER paid retail for ANYTHING, so STHs, keep negotiating down, and then negotiate some more… to the breaking point. That’s simply what he would do if he were buying something from you.

    DTS will never make any moves until he starts losing money on the team, so do whatever you can to hit him in the wallet.

    [Reply]

    Posted on April 22nd, 2009 at 1:50 am

  14. Frank The Tank Said,

    I see him losin business next year because their tickets wont sell plus people don’t like Dunleavy they want a new coach he’ll soon realize this next season. If he is coach next year then the seats will be almost empty.

    [Reply]

    John R.

    John R. Reply:

    That’s so much self-flattery and wishful thinking.

    Do you look around when you go to a game? Most of the folks there always seem to be there on the special deal of the night. Attendance is barely off from last season. Its certainly off less than the cost of a new coach and a new GM.

    Look at the incentives they are offering to renew. Do they indicate to you that they REALLY care about you?

    We are all so self-important around here, aren’t we?

    [Reply]

    eastie Rich

    eastie Rich Reply:

    Of course I don’t have a count, but going to the games this year it did look like attendance was way down from last year – actually about the lowest I’ve ever seen.

    [Reply]

    Posted on April 22nd, 2009 at 4:20 am

  15. MichaelCage! Said,

    John R, what games did you go to? Attendance is way down from last season, even with the huge discount in ticket prices and alot of ticket giveaways. My rep confirmed as much to me, and a cursory glance around the stadium during most games will confirm that.

    Don’t be in denial; poor performance on the court and a very poor economy will affect attendance. It doesn’t take a genius to figure that out. And yeah, the Inside Sales force and STH reps do care about retaining you because they’re under pressure from their supervisors to retain the base after losing 40% last year. Try not renewing and see how many calls and perks they offer you as the new season get closer. We got moved down to essentially floor seats and given free parking passes all season.

    Are you even a STH?

    [Reply]

    eastie Rich

    eastie Rich Reply:

    Hey, I finally got a call from my rep. Still no renewal package though. He asked what I thought about the state of the team and I listed the three things that bothered me most (Dunleavy came in second).

    Anyhow, after I get the package next week he’s supposed to follow up, but from the initial conversation there aren’t going to be any special deals offered (at least in my case – I wouldn’t expect anything else).

    [Reply]

    Posted on April 22nd, 2009 at 4:35 pm

  16. Ricky Danger Said,

    Just thought I’d make this point in response to the original post:

    I live in New Zealand, and alas, we only get two televised NBA games per week. Yes, it’s like the Dark Ages here. We would never get a Clippers game televised. Be patient – I’m going somewhere with this. I was planning to go live somewhere in the United States so I could frequent NBA games, and make my soon to be released basketball blog more relevant. The original idea was a tour of sorts to take in as many teams as possible. After reading Bill Simmons’ article “The Dumbleavy Era”, I was astounded to the point of changing said original idea. Now, I want to relocate to Los Angeles, and see Clipper game after Clipper game. I support the Suns, my favourite player is LeBron, but all I want is to see the Clippers now.

    I guess my point is that I am enticed by dysfunction and ineptitude, and I would pay whatever the Clippers asked for a season ticket. I must see them in person, I simply must. However, I understand that seasoned Clipper fans may have had enough punishment, and feel negotiating is warranted. However, if there are more like me who want “in”, then they may not be as malleable in terms of negotiation. Blame Simmons.

    PS: And before someone points out that Phoenix are perhaps equally as dysfunctional, trust me, I know, and that reality is far, far too painful for me to see them at home. I would only cause an international incident by starting a fistfight with Steve Kerr.

    [Reply]

    eastie Rich

    eastie Rich Reply:

    Your post is unintentionally hilarious. The Clippers have to go to the end of of the earth to find a fan willing to pay full price for season tickets. Or the “Dark Side of the Moon” if you will.

    Don’t misunderstand my comments, I have some good freinds from NZ and from all accounts it’s a beautiful place.

    [Reply]

    Posted on April 22nd, 2009 at 9:40 pm

  17. Mattafact Said,

    Tickets should be free until they fire every one responsible for bringing in Zach Randolph.

    Check out “Dumbleavy” the fire Mike Dunleavy song!
    http://www.youtube.com/watch?v=ipZEZcPNKdY

    [Reply]

    Posted on April 24th, 2009 at 4:38 pm

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