This is what I blurted out in class, baffled by the high price casually associated with a seat at a basketball game. This got me thinking – what influences the wildly different prices of professional sports tickets? How are the tickets priced? The first price determinant, as we would expect, is the sport itself. For instance, the average NFL ticket is more expensive than an average MBL ticket, which is more expensive than an average NHL ticket. This isn’t too surprising, but what’s interesting is the huge disparity within a given sport. This disparity tends to come from pricing methods, Continue reading That’s how much sports cost?
The NBA just signed a new T.V. deal with ESPN and TNT over the next 9 years for over $24 Billion… What this means, besides more money for everyone, is that the salary cap is expected to rise again. This will cause all sorts of excitement as new free agents will start to look for larger contracts, and teams will have the cap space to provide these contracts. The next few free agency periods are set up to be extremely exiting, with a lot of player movement, and outrageously large contracts. What I find really interesting are the contracts that Continue reading New T.V. Deal = More $
A couple years ago, a company called Fantex announced that it would be having an IPO (initial public offering) of stock on Houston Texan’s running back Arian Foster. The goal was to offer about a million shares of stock in the earnings of Foster, the 28 year old star running back. Foster would receive $10 million up front, and the value of these shares purchased is linked to essentially 20% of the earnings associated with his professional brand (including endorsements and other business ventures). This would count any earnings from contracts for playing in the NFL, or any jobs later Continue reading Player Stock from Fantex