Tickets of America Media

Miami, FL, February 2, 2010 - The numbers don’t lie. The Super Bowl ticket market is taking a dive - fast. Ticket expert Michael Lipman, President and CEO of Miami-based ticket company, Tickets of America, explains the reasons behind the current Super Bowl ticket climate.

“The last time Miami played host to the Super Bowl in 2007, which saw a match-up between the Colts and the Bears, tickets had a face value of $500, and fans could expect to pay $3,300 and up. Lower 15-yard line seats were going as high as $6,500 and a 24-person catered suite went for a staggering $240, 000,” Lipman remembers.

Prices in 2010 fall well-short of those numbers. “Even though the face value of tickets begins at $800, prices are as low as $1,250 a ticket, with the same lower 15-yard line seats selling for $2,950. A 24-person catered suite is practically a steal in comparison at $95, 000,” says Lipman.

The prices for Super Bowl parties have plummeted as well. “In 2007, you could purchase a highly sought-after Playboy Party ticket for $3,000; in 2010, the price is $1,250,” Lipman also notes.

So what is to blame? Is it the economy? Or a different team playing against the Colts is resulting in a “Super Bomb?” As Lipman explains, it is a combination of both factors driving the market down. Corporate spending was at its peak in major financial market cities, like Chicago, which allowed those fans that attended from these cities to shower South Florida wads of cash back in 2007, which is what helped drive Super Bowl ticket prices to record highs.

The weak ticket market for the 2010 Super Bowl has been spurred by the global financial crisis and the South Florida real estate collapse. With corporate spending becoming so highly scrutinized by the public since the stock market crash, corporations are much more cautious with their discretionary spending. While corporations once allocated funds one to two years in advance for the purchase of Super Bowl packages, which include game tickets, hotel and travel accommodations, parties, etc., many of these same corporations are now under a microscope after receiving government stimulus monies. Today, corporations are liquidating their position and selling suites and tickets in an attempt to recoup previous budget outlays or prior sponsorship deals, which is causing an excess supply of tickets in the market place.

Also to blame is the participation of the smaller-market city of New Orleans. “When compared with Chicago, who’s Bears participated in the 207 Super Bowl, New Orleans does not have the number of large corporations or the strong South Florida ties,” says Lipman.

The hypothetical question on the minds of South Florida hotels, party promoters, luxury car rentals, restaurants, bars and ticket resellers, such as Tickets of America is, “What difference would a Super Bowl appearance by the Jets have made?” Lipman simply answers,”Money, and a lot more of it!”

When it comes down to it, the Super Bowl is definitely team driven. For example, teams such as the New York Jets and Chicago Bears make bull ticket markets, whereas a match-up between teams like the Indianapolis Colts and New Orleans Saints create bear ticket markets.

Lipman provides an explanation for previous Super Bowl Ticket highs and lows over the past decade:

2001: Ravens v. Giants in Tampa, FL. High $3500; Low $1250
“The biggest gain was due to many brokers taking short orders and the New York market drove prices to all-time highs the day of the game”

2002: Patriots v. Rams in New Orleans, LA. High $2000; Low $200
“These tickets sold under face value post-9/11. Super Bowl and fans were terrified to travel and scared of terrorist threats.”

2003: Buccaneers v. Raiders in San Diego, CA. High $2300; Low $1100
“The Biggest one-day drop came on the Wed. prior to the Super Bowl because Raider Owner, Al Davis, dumped 5,000 seats into the secondary market at once.”

2004: Patriots v. Panthers in Houston, TX. High $2750; Low $1100
“Strong local economies in Texas and Mexico brought tons of buyers causing the biggest price jump on the day of the game.”

2005: Patriots v. Eagles in Jacksonville, FL. High $3750; Low $2300
“This year saw an all-time Super Bowl ticket high due to strong teams, Philly fans, a strong US economy and a booming Florida real estate market.”

2006: Seahawks v. Steelers in Detroit, MI. High $3000; Low $2100
“Steelers fans had an easy 4 hour drive to Motown, which made prices strong in a very weak and depressed downtown Detroit.”

2007: Colts v. Bears in Miami, FL. High $3300 Low $1500

“Pouring rain drove game day prices to tank.”

2008: Patriots v. Giants in Phoenix, AZ. High $3000; Low $1300
“With two East Coast teams competing in a weak corporate market in Phoenix, ticket prices didn’t reach the high that ticket brokers predicted. This year’s market dropped continuously.”

2009: Cardinals v. Steelers in Tampa, FL. High $2200; Low $1100
“Steeler-Nation drove prices up the day of the game once again.”

2010: Saints v. Colts in Miami, FL. High $2000; Current Low $1450
“Will this be all-time Low since 9/11 or will Saints fans drive in to Miami this weekend?”

Tickets of America buys and sells tickets for sport, concert and theater events worldwide.
They boast the largest inventory of tickets in the nation, specializing in locating hard to find or sold out seats. With offices in Miami, New York and Costa Rica, their multi-lingual staff possesses over 15 years of experience in the industry in worldwide markets. Visit www.ticketsofamerica.com to find tickets to any event from the convenience of your own home anytime!
For further information, please contact Tara Cochran at tara@ticketsofamerica.com.

It was a bull market in South Florida last time, thanks mostly to the Bears. Now speculators sound bearish, though that will probably change once the Saints come marching in.

Sports puns meet demand curves every year at this time as the erratic, dicey and largely hush-hush market for Super Bowl tickets revs into action. Brokers say ticket sales have been soft so far, thanks to a weak economy and the fact that teams from small cities are playing in the Feb. 7 championship.

Even so, the pricing bubble for Super Bowl tickets seems virtually puncture-proof. The cheapest seats in Sun Life Stadium sold for about $2,000 apiece Friday even as brokers grumbled about penny-pinching fans from Indianapolis and New Orleans.

“That’s the best word I can give you: soft,” said Jay Smith, president of Sports Travel and Tours in Hatfield, Mass., which is selling Super Bowl packages for $3,900 a head. “People are not banging down the doors.” Thousands of tickets were up for grabs this week on ticket exchange websites and online marketplaces such as eBay and Craigslist.

“It’s certainly a buyer’s market,” said Joellen Ferrer, a spokeswoman for StubHub.com, which had about 5,000 Super Bowl tickets for sale this week. In recent days, the median asking prices on StubHub, which pairs ticket buyers and sellers, dropped sharply to about $2,500 for the Super Bowl — down from $3,500 a week ago.

THE VARIABLES

Projecting how much to mark up a Super Bowl ticket — face values start at $500 — has gotten more complicated this year.

A drop in corporate entertaining at the big game left more tickets available for regular fans. Brokers say they’ve all but written off the Indianapolis Colts as a significant driver of ticket sales since the team was just in South Florida for the Super Bowl three years ago.

But with the New Orleans Saints playing in their first Super Bowl after 42 years, there’s hope that fans will come down from Louisiana even if they haven’t bought tickets yet. That could lead to last-minute purchases, and a spike in prices.

Robert Tuchman, an executive vice president at Premiere Global Sports, said South Florida’s last Super Bowl saw a similar pattern in 2007, when the Colts also contributed to weak ticket sales. But late-buying Chicago Bears fans ultimately sent the market soaring.

Good seats that were selling for $3,000 on the Wednesday before that game suddenly were commanding $7,000. “It just skyrocketed,” Tuchman said.

“We’re really expecting the Saints fans to come,” said Michael Lipman, of Miami’s Tickets of America, an online brokerage. “And they will come. How much they’ll pay is another question.”

Lipman expects to sell roughly 1,000 Super Bowl tickets this year.

EXCHANGING HANDS

The National Football League sends 75 percent of Super Bowl tickets to the league’s 32 teams, which then distribute them to players, coaches, executives and corporate sponsors. The NFL’s share of tickets also gets spread out to sponsors, charities, media organizations, local organizers and fans who enter lotteries.

From there, the tickets begin changing hands. Even though NFL rules bar team employees from selling theirs for more than face value, many do, Lipman said. He said he and his staff court financial advisors and agents representing players as potential sources for Super Bowl tickets.

“It really is a relationship game,” he said.

For teams that don’t make it to the Super Bowl, their players can buy two tickets at face value. For the two Super Bowl teams, their players can buy up to 15. Even so, Lipman said sponsors and other companies with ties to the league are the best sources for tickets — particularly this year as companies pull back money on sports deals signed before the economy went sour.

“Corporations are selling more tickets these days than buying them,” he said.

Prices are keeping even die-hard Saints fans away from South Florida, at least for the moment, travel agents said.

“People desperately want to go,” said Karen Peeler Wild, owner of Lagniappe Travel Services in New Orleans. “Once you go online and you see how much they’re brokering tickets for, that’s a $10,000 weekend. We can’t afford that.”

Wild said some clients are driving to South Florida in hopes of finding a cheaper ticket once they arrive. She said she would make the trip just to celebrate in the parking lot outside the game, if not for the NFL’s policy of banning tailgating before the Super Bowl.

“If I can’t be in the parking lot, why even go?” Wild said. In New Orleans, “they started tailgaiting Friday for the Sunday AFC championship. They really did.”

Week prior to Superbowl (Tuesday prior)
SUPERBOWL XLI- Colts v. Bears in Miami 2007
Face value $500
Prices started $3300
Lower 15yd line $6500
24 person Catered luxury suite $240,000
Playboy Party Passes $3000

Today
“SUPERBOmb” XLIV- Colts v. Saints
Face value $800
Prices start $1450 up
Lower 15yd line $2950ea
24 person Catered luxury suite $95,000
Playboy Party Passes $1750

Three years later is it the economy or different teams playing against same Colts has caused “Superbomb”?

Combination of both driving the market down. Corporate spending was at its peak with major financial markets cities such as Chicago showered South Florida wads of cash back in 2007 driving Superbowl prices to record highs. Unfortunately sever global financial crisis, South Florida real estate collapse, and small market city New Orleans have made Superbowl most affordable since 2002 after 9/11. Major factors have effected the corporate spending 07 v. 10.
1) Prior to 2008, Corporations allocated funds a year or two in advance and purchased Superbowl packages 6 months prior to event (tickets, hospitality, hotels, parties, etc.)
2) Post late 2007 financial crisis, Corporation’s executive/employees are terrified being since at Superbowl or staying in luxury hotels when many of these firms stock prices have dropped 70-80 percent in value or recieved government stimulus money.
3) ‘10 Saints (small market team and home of small number of major corporations with very few Bayou residences have 2nd homes in South Florida) v. ‘07 Bears (major financial market with strong South Florida ties)
4) Today, Corporations are liquidating their position and selling suites and tickets to attempt to recoup previous budget outlays or prior sponsorship deals which is causing an excess supply on the market place

Million dollar question South Florida hotels, party promoters, luxury car rentals, restaurants/bars, and Ticket resellers such Tickets of America ask- What difference would have the Jets made?

Answer- $$$
At the end of the day the Superbowl is definitely team driven (JETS and BEARS make bull ticket markets) v. (COLTS or SAINTS make bear ticket markets)
Host city local economy makes a huge difference and impact on ticket prices (corporations will use the tickets v. selling tickets causing excess supply)

Starting Superbowl Ticket Prices highs/lows over the past decade-
2000 Titans v. Rams in Atlanta High $1500 Low $800 “ICE BOWL no fans could drive or fly into Atlanta causing prices to drop”
2001 Ravens v. Giants in Tampa High $3500 Low $1250 “Biggest gain due to many brokers taking short orders and New York market drove prices to all-time highs day of the game”
2002 Pats v. Rams in New Orleans High $2000 Low $200 “UNDER FACE Value post 9/11 superbowl and fans were terrified to travel and scared of terrorist threats”
2003 Bucs v. Raiders in San Diego High $2300 Low $1100 “Biggest 1 day drop Wed. prior to Superbowl because Raider Owner Al Davis dumped 5,000 seats on the secondary market all at once”
2004 Pats v. Panthers in Houston High $2750 Low $1100 “Strong local economies in Texas and Mexico brought tons of buyers causing the biggest day of the game jump”
2005 Pats v. Eagles in Jacksonville High $3750 Low $2300 “Strong teams and Philly fans drove in, Strong US economy, Florida Real Estate market booming, ALL TIME SB TICKET HIGH”
2006 Seahawks v. Steelers in Detriot High $3000 Low $2100 “Steelers Black/Gold easy 4 hour drive to Motown made prices strong in a very weak and depressed downtown area Host city Detriot”
2007 Colts v. Bears in Miami High $3300 Low $1500 “Pouring rain drove day of the game prices to tank”
2008 Pats v. Giants in Arizona High $3000 Low $1300 “Two East coast teams in weak corporate market in Phoenix..Ticket brokers predicted this Superbowl market wrong pricing undefeated Pats against NY Giants at $3000 starting price which dropped continuously”
2009 Cards v. Steelers in Tampa High $2200 Low $1100 “Steeler Nation drove prices up day of game again”
2010 Saints v. Colts in Miami High $2000 Current Low $1450 “Will this be All time Low since 9/11 or Will Saints fans drive in this weekend”

Super Bowl ticket brokers hope for late boost in profits

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