OnDemand WTP Pricing Research

What resale sites like StubHub are doing to the price of your ticket | WUNC

When it comes to selling NBA tickets and merchandise, having the best basketball player in the league helps. Lebron James’ move to the Lakers, announced on July 1, led to massive ticket price increases on StubHub and a rise in merchandise sales even before the basketball season started.

That should be good news for Anschutz Entertainment Group, which operates the Staples Center and owns a slice of the Lakers.

Dan Beckerman, the CEO of AEG, recently spoke to Marketplace’s Kai Ryssdal about the Staples Center’s effect on downtown LA and how the company handled the recession.

“We have a vested interest in making sure that our teams are successful. So in addition to it being rewarding for us to be at the games and watch us win, it’s also good for our business to be successful,” Beckerman said.

We examined the cost of a seat at the Staples Center, on the primary market, over the course of a week for sporting events to see what it revealed about the ticket economy and how pricing works.

Most sports teams in the NBA, NHL and MLB use a combination of variable pricing (which takes into account the time of day, season, and competitor) and dynamic pricing (which takes into account the current market demand and will adjust accordingly).

Weekend games, as you might expect, will typically have higher prices than weekday games, and evening games will usually cost more than day games, said Patrick Rishe, author of the sports business book “They Shoot… They Score!” and director of the sports business program at Washington University in St. Louis.

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What resale sites like StubHub are doing to the price of your ticket | WUNC.