10 Updates

How Box Office Prices For Bruins Playoff Tickets Are Killing The Secondary Ticket Market

Apr 19 2014, 3:23am CDT | by

The Bruins have a long history of success with six Stanley Cups championships, most recently in 2010-11.  Heading into the 2014 NHL Playoffs, the Boston Bruins are favored by Las Vegas to win their...

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14 weeks ago

How Box Office Prices For Bruins Playoff Tickets Are Killing The Secondary Ticket Market

Apr 19 2014, 3:23am CDT | by

The Bruins have a long history of success with six Stanley Cups championships, most recently in 2010-11.  Heading into the 2014 NHL Playoffs, the Boston Bruins are favored by Las Vegas to win their seventh.  While that’s good news for Bruins fans looking to root from home, it’s bad news for fans who want to see the game in person.  As a result of their enviable position atop the NHL and holder of the President’s trophy, Bruins playoff tickets on the primary market are priced 140% higher than any other NHL team.  The minimum price of entry to TD Garden for the first round of the playoff is $155, which will get you a spot at the back of the promenade section or somewhere in the Balcony.  That’s $93 more expensive the average of the cheapest faceprice across the other 15 teams in the playoffs.  The most expensive ticket at TD Garden is going for $486.   If you (conservatively) assume the Bruins are applying a $92 premium to all of their price categories, they’re generating $1.3 million in additional revenue…per game.  With home ice advantage, if the Bruins were to play all 16 of their possible games at home, that would amount of $20 million of incremental revenue.  In years past, that $20 million in value would have gone to brokers or other fans looking to resell their tickets.  However, with the aid of historical data, and riding the recent trend in professional sports toward ‘price optimization’, the 2014 Bruins will be keeping it all for themselves. While it’s the kind of money that can pay for two-three key players in the off-season, it also likely signals the beginning of the end of the secondary ticket market as we know it.

In the years before the secondary market, teams lazily set prices with a finger-in-air rationale.  If demand was higher than the price they set, there was no real way to quantify the difference, and therefore no numbers to fret over.  The online secondary market, however, changed all of that, and in the 15 years since ticketing went from the street corner to Internet, those numbers are available with glaring precision.  Over that time, a multi-billion dollar industry has been built around inefficient team pricing.  After a period of shock and indecision that lasted a decade, teams are now up off the matt and swinging with tools, technology and data that makes the days of 100% profit margins for brokers as antiquated as waiting in line to buy tickets.

Historically, ticket speculators ‘bought’ a team for the season when they believed the prospects for a post-season run were good.  Along the way, these speculators—whether professionals or fans—were ok to lose money on low demand games as long as they could make up for those losses for the high demand games.  Over the course of a season, the playoffs are typically the highest demand games and as close you can come to a guaranteed return on investment.  With a face price of $155 for their cheapest tickets, however, the Boston Bruins are soaking up all that return-driving margin, and then some.  Currently, the cheapest Bruins tickets on the secondary market are selling for $132, or 15% below face price.  While season ticket holders do get a discount to the listed face price, at these prices brokers and fans are not making any money selling tickets.  Unless they’re getting a discount of greater than 15%, they’re actually losing money.

The next most expensive face price on the market is for Blues playoff tickets who are selling their cheapest tickets for $78. That compares to $26 for the same ticket next season.  Vegas odds say that the Blues are favored to make the make the Stanley Cup in the Western Conference, and by marking up their first-round playoff tickets by 250%, the Blues clearly expect demand to be at Stanley-Cup levels.   While the Bruins overshot the market by 15%, the Blues were even farther off, overpricing tickets by 20% based on the current get-in price on the secondary market of $62.

If the Stanley Cup finals ends up being the Bruins and the Blues, the last thing that fans are likely to remember is how expensive their tickets were (especially for the winning team).  However, if either team falters along with the way, there will surely be bitterness toward a team that decided to leave nothing on the table for the people who have invested in them over the years, both emotionally and financially.

For a list of prices and premiums across all 16 NHL playoff teams , visit the TiqIQ blog.

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken i ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddin H ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Se ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Mohame ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an alloca ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramada ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) tod ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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