Joba Chamberlain opens the second game ever at the new Yankee Stadium and empty seats outnumber full ones in the exclusive areas behind home plate and the dugouts. The Stadium was packed otherwise. (Flickr / Fansherpa)
With all the fuss over the empty luxury seats at the new Yankee Stadium, I was mildly surprised to find something similar – dramatically so – happening in my own backyard. We went to Sunday’s A’s-Rays game at the Oakland Coliseum. All the ingredients for a great day at the ballyard were in place: sunny April weather, last year’s AL champions in town and a Sunday afternoon. What we found instead was a micro-market in disarray. As the credit markets teetered last October, the market for sports tickets anecdotally seems to be following.
The first indication there was a problem was the total lack of online ticketing activity. There were practically no offers on CraigsList, even from brokers, and none at all on eBay. At the walk-up ticket booth, we found that we could buy any section in the house, including the Diamond Level. This should simply never be the case. The Diamond Level is a very limited “VIP” area, maybe 60 seats tops, right behind the plate on the playing field level. Seats go for $225 but also include free food and drink service for the whole game.
Weirdest of all was the scene inside the stadium. The A’s bifurcate each of the two seating levels – a minimum of two pricing levels in each deck. In both decks, there was a cluster of people behind the plate, practically nobody for several sections as the seating moved towards the outfield, another cluster in the sections starting the new pricing tier, again fading to nothing.
The mystery to me is why shouldn’t the people forced out to the outfield be able to sit in these empty “mezzo-sections.” The answer could come from a nimble dynamic pricing system at game time. As airlines like Virgin and JetBlue have discovered with exit rows sold at check-in, why not enable ask fans as they arriveto purchase a better seat for an extra few dollars? It would be an easy thing to equip ushers with Palm-style barcode and credit card machines like those carried by the clerks at The Apple Store. Everybody gets the opportunity to move closer (or elect not to), getting rid of the weird empty spaces and (I’m assuming) presenting a better, more invigorating environment for the home team. (I know they’re supposed to ignore the crowd, but ask any actor or musician if they’d rather play to a full orchestra than have the front rows empty and the crowd loosely dispersed.)
Meanwhile across the bay, the Giants are trying out a number of dynamic pricing policies. First, the team partnered up with a firm to build elastic pricing around its unsold inventory for the least attractive games. Last week, though, came the real reckoning – and a big indication that the team is running scared about its attendance. Ticket prices were dropped 40% for the Giants series this week against the Dodgers, traditionally the most attractive opponent. Granted the team is trying to stir up interest for later in the year – it appears they’ll be competitive in a moderately challenging division – but to have to do this so early and against the team’s best natural rivarly is surprising. One wonders how scared the Giants are about advance sales for the rest of the year.
Susie is quick to point out that the lack of an Oakland A’s ticket market framed by the fact that the Oakland Coliseum is a horrible dump, getting dumpier every day. The tarps in the third deck look weathered and horrible, while the bathrooms, parking lot and facilities remain some of the worst for a major league sport. Nevertheless the empty seat patterns – along with all the unsold display ad inventory throughout the stadium – are clear indications that baseball is not recession-proof. There are easy ways to make profit from making markets more efficient; marketing and pricing are the classics. Let’s see if the A’s and their brethren take up the challenge.