Super Bowl Sentiment – Inflation And The High-End Consumer
By Tyler Durden
January 30, 2012
ConvergEx’s annual analysis of Super Bowl economics shows that, when the time and place is right, prices can soar like a Hail Mary pass to clinch the playoffs. Yes, the face value for tickets is unchanged in the last year – $800 to $1,200. But the street price for a ticket to the big game will set you back at least $2,000, and the average ticket is running closer to $4,000. The good news, sort of, is that there has been no inflation for the “Cheapest” seats since last year, when they were also two grand. And that is despite a smaller stadium this time around (68,000 versus +80,000). A signal about the stagnating confidence of the high end consumer? Perhaps. But anyone wanting to attend had better be ready to pony up for hotels, airfare and rental cars that run 3-10x the usual prices for this time of year. In Indianapolis. The good news – next year’s game is in New Orleans. So even if street prices don’t pick up this week, we’re pretty sure next year will set new records.
Via Nic Colas, ConvergEx Group: All My Rowdy Friends Are Coming Over Tonight
What percent of football fans would take a free ticket to the Super Bowl this Sunday? You’d think it would be close to 100%, but you’d be off by about 90%. The real answer is 10%. That surprising fact comes courtesy of the Indianapolis Star, which reported that only 246 of the 3,200 people who were accidently shut out of last year Super Bowl and got replacement tickets actually decided to cash them in for this year. The rest either took the cash offered by the league ($5,000) or are clearly hoping that their team (Green Bay or Pittsburgh) makes it back to the big game in a future year.
The Super Bowl is, of course, the most important game of the year in America’s most popular sport. But it is also a useful economics lab that allows us to study both the confidence of high end consumers as well as the pricing of resources that are temporarily scarce. The “Big Game” occurs every year at the same time, give or take a week, so any given year’s data is roughly comparable to other periods. And, of course, the content is the same.