Could SuperBowl XLVIII At MetLife Stadium Have The First-Ever Million Dollar Suite Purchase

Jan 18 2014, 1:06pm CST | by

Could SuperBowl XLVIII At MetLife Stadium Have The First-Ever Million Dollar Suite Purchase

For the general public, whether or not to attend the Super Bowl is a question of a few thousand dollars.  While by no means trivial, at a current average price of $4,600, Super Bowl tickets are only listing for about 1% of the price of Super Bowl suites. While ticket prices for this year are about 15% above the four-year average, the difference in suite prices are is anywhere from 80% to 300% higher. In years past, a suite could cost from $150,000 to $250,000. This year, prices are starting at $450,000, and after Sunday those prices could rise significantly depending on who gets into the game.

From the beginning, MetLife’s suites set a high bar.  Designed by celebrity architect David Rockwell who has done major projects that range from the W in Union Square to the Academy-award hosting Kodak Theatre, the 220 MetLife suites hold anywhere from 12-30 guests. Even with their tony heritage, the market this year is in a different league than any previous years.  In addition to higher demand because of the possibility of foul weather, supply this year has been severely constricted. In years past, suite holders for the Jets and Giants would have gotten access to their suites for the Super Bowl, which they could in turn sell for a hefty profit.   This year, the NFL pulled it’s version of eminent domain and took away suites from team season ticket holders to include them as part of million dollars sponsorships for the NY/NJ Super Bowl host Committee.  The committee has 28 sponsors, and when you add to that teams, the league, and existing sponsors, there are likely less than ten suites on the market, compared to 30 in an average year. Here’s a detailed MetLife Seating Chart that shows the three suite levels.

As hard as it is to believe, depending on who gets into the game, prices could rise from here. While it’s unlikely we’ll get to a million dollar suite, before ruling it out consider the obvious fact that the majority of suite purchases are from corporate buyers. Also consider the fact that San Francisco and Seattle have four of the most cash-rich companies on the planet. Microsoft alone has over $63 billion in cash on their balance sheet and when you add Apple, Cisco and Google into the mix, there’s over $200 billion of corporate cash that could be looking for a weather-protected way to spend the six hours on Super Bowl Sunday.

In most years, suite purchase are about ROI.  In order to justify a $150,000 suite as an investment, there needs to be a strong ROI case for entertaining clients and prospects.  When you’re talking about a $500,000 investment, though, it’s unclear if ROI is even a possibility. That means that anyone who locks in on one of the remaining suites is doing so without any real expectation of a return, and without much limitation on what they’d be willing to pay.

In addition to the game, Suite holders will also be getting a great seat for a Bruno Mars concert.   Based on the recently-announced second leg of his tour, Bruno Mars tickets have an average price of $337, which takes a tiny bit of the sting out of that $500k+ price tag.  If you want to track non-suite Super Bowl ticket prices for the game itself, here’s a cool infographic that TiqIQ and Bloomberg put together.

Source: Forbes Business

 
 

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