Tickets of America Media

The Miami Heat confirmed Friday morning that the team has sold out its current inventory of season tickets. Ticket brokers and sellers are poised to benefit.

Once LeBron James made his decision on Thursday, the minimum asking price for Heat season tickets jumped to $3,500, compared to $2,000 the day before, said Joellen Ferrer, spokeswoman for eBay’s StubHub subsidiary. In completed sales, the average sale of Heat season tickets went for $5,000 on StubHub on Friday, up from the previous average of $3,300. StubHub connects ticket buyers and sellers using fixed prices, rather than auctions.

“Seeing this heightened demand we expect that to continue, especially with the announcements of the schedule and the sale of individual games,” Ferrer said.

Michael Lipman, president and CEO of Miami-based Tickets of America said the feverish demand for Heat tickets in the wake of James’ arrival is unparalleled to any free agent signing in U.S. sports history.

It’s bigger than the demand after Alex Rodriguez joined the New York Yankees or when Michael Jordan joined the Washington Wizards, he said. The only thing he could compare it to is soccer superstar Cristiano Renaldo joining the Real Madrid club.

“This is a global signing” said Littman from South Africa, where he was attending the World Cup. “The biggest demand for tickets have come from hip hop artists and pro football players. They are really lighting up my phone looking for courtside seats. We’re going to rival the LA [Lakers] in courtside star power.”

Ferrer said Miami Heat tickets are the hottest sellers on StubHub’s website over the past 24 hours.

The Heat is telling would-be season ticket holders to call (786) 777-4667 to be placed on a waiting list - “as we anticipate the release of additional inventory in the near future,” said Eric Woolworth, the team’s president of business operations, in a news release.

Littman, who heads sports marketing firm White Glove International, said he expects the team to package many of the remaining season tickets with corporate sponsorships, license agreements and marketing deals.

There will be huge demand from companies to sign marketing deals with the Heat and its three superstars, he said.

“There will be a lot of creative ways to package these tickets and do branding for companies involved,” Littman said. “This really is a business and I foresee the corporate sponsors buying hospitality packages and marketing opportunities with players to have first access to tickets.”

The team doesn’t release specific sales numbers, Woolworth said. “However, we can say that the sale of premium seats and season tickets over the last couple of weeks has been extremely brisk, peaking in a new intensity the last couple of days.”

Littman said many ticket brokers are holding off on selling Heat season tickets until the market settles down. This lack of supply is making demand shoot up, he said. Fans who bought Heat season tickets a month ago could easily sell them for double their value, although Littman believes most die-hard Heat fans will keep their tickets.

Still, Tickets of America specializes in helping season ticket holders sell seats for the games they can’t attend. He predicts that market would generate a nice return for ticket holders.

While Team President Pat Riley skillfully cleared salary cap space in his quest to land LeBron James and Chris Bosh and keep Dwyane Wade, there were no guarantees of that happening when the Heat launched a season ticket renewal campaign in February.

The team initially held prices flat, though, and did not raise prices until July, Woolworth said. His statement assured group ticket buyers that all of their deposits would be honored.

“And, finally, in contrast to past practice, we have determined not to sell any season tickets in our 400 level this season, and will reserve that inventory for some combination of group tickets, partial plans and variably priced individual game tickets,” he said. “This strategy is part of our long-standing commitment to provide access to as much of our community as possible, as well as a wide range of ticket prices to accommodate all fans looking to feel the Heat experience live and in person.”

In a Friday afternoon interview on CNBC, Woolworth said the team didn’t want to be opportunistic in pricing tickets.

“We’re not just about trying to milk it for everything it’s worth,” he said.

The remaining seats will most likely begin to go on sale sometime after the team gets its schedule later this summer, he said.

A pricing schedule released by the Heat had season package prices running from $1,161 for the 300 level to $12,900 for the lower 100 level. Individual tickets ran from $11 in the upper 300 level to $300 in the 100 level.

Alan T. Brown, president of PrimeTime Public Relations & Marketing, said he’s curious about what will happen with luxury suite sales in the arena. Sales have been tough during the recent economic downturn, with some companies, such as banks, under scrutiny to avoid high-profile spending.

The Heat might be so popular now that major companies that don’t necessarily have South Florida operations could be interested in suites, he said. The allure of seeing the superstar trio playing can be topped off with fun on South Beach and some rounds of golf.

Brown said: “A national company that can afford to do something like that - why wouldn’t you want to send your clients to Miami for a weekend?”

source: South Florida Business Journal

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

Click here to download the article from Miami Herald

Miami, FL, January 26, 2010 — With weekly appearances on top-rated sports radio shows such as “The Ticket” on 790 AM in South Florida, Fox Sports Radio, ESPN Radio and Sirius XM Satellite Radio, Michael J. Lipman has established himself as an expert in the ticket industry. With the Super Bowl only 12 days away, the president and CEO of Miami-based ticket company, Tickets of America, offers his insights on this year’s Super Bowl ticket market.

Lipman expects the ticket prices to range from $1800 per person for upper-level seating, to $5000 per person for 50-yard line clubs and luxury suites, as the New Orleans Saints and Indianapolis Colts go head-to-head. Lipman is confident that fans will be treated to an exciting match-up between two teams who are loaded with star power on both defensive and offensive sides.

“You have the two best teams in the league, with the two best quarterbacks in the league, who are potential Hall of Famers, facing off. Both teams have dynamic rosters that are exciting to watch. It’s an ideal scenario for fans!” he says.
Both teams come into the Super Bowl with nearly perfect seasons (Colts 14-2; Saints 13-3). Colts quarterback Peyton Manning and Saints quarterback Drew Brees ranked one-two, respectively, in this year’s MVP race. Many argue that a winning performance by Manning will stamp him as the greatest quarterback in the league’s history. The fan-bases for both quarterbacks alone will bring hordes of fans to Miami on Feb. 7.

Storylines between these two teams abound off the field as well and will provide a rooting interest for even the most casual football fan. This year marks the Saints’ first Super Bowl appearance and given the tragedy of Hurricane Katrina that the city continues to recover from, they are sure to be the sentimental favorites of many across the nation. The Colts also have a team member dealing with loss from a natural disaster. Wide receiver Pierre Garcon’s family remains missing in Haiti after the devastating earthquake that occurred there just over a week ago.
“The general consensus between experts all season has been that these two teams would make it to the Super Bowl. This sell-out event could potentially go down as the greatest Super Bowl in history,” Lipman predicts. “It should not be missed.”

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(at)ticketsofamerica(dot)com

January 22, 2010 — With weekly shows on top rated sports radio shows such as “The Ticket” on 790 AM in South Florida, Fox Sports Radio, ESPN Radio and Sirius XM Radio, Michael J. Lipman has established himself as an expert in the ticket industry. As President and CEO of Miami-based ticket company Tickets of America, Lipman projects a great opportunity for ticket sales for Super Bowl XLIV compared to previous years. The New York Jets, Minnesota Vikings, New Orleans Saints and Indianapolis Colts teams all have unique factors that make them attractive in several areas. With the game only weeks away, Lipman offers his insights on this year’s Super Bowl ticket market.

This year’s Super Bowl ticket.

Lipman sees the Jets’ deep-rooted fan-base and New York corporate market as a potential boon to ticket sales. “If the Jets make it to the Super Bowl, tickets are likely to bring upwards of $4,000 a piece since the Jets haven’t played in a Super Bowl since Namath’s Super Bowl appearance in 1969, and every New Yorker has South Florida ties”.

With Peyton Manning’s prolific fan-base, the Colts’ appearance in the Super Bowl will undoubtedly attract people from around the country to travel to Miami. And with a scenario pitting them against the Brett Favre and the Vikings, the results in ticket sales may be unprecedented based upon each team’s quarterbacks alone. “A match-up between Hall of Famers Favre and Manning will bring tremendous ratings and global ticket demands that could cause ticket prices to exceed $2500,” Lipman believes.

The Saints have arguably one of the best quarterbacks in the NFL in Drew Brees. After starting the season winning 13 straight games, they were early favorites to make it to the Super Bowl. Their presence is sure to make headlines and their dynamic roster featuring not only Brees, but Reggie Bush and University of Miami alum, Jeremy Shockey, will attract fans from several regions. A match-up between star quarterback Brees and the Jets’ rookie quarterback, Mark Sanchez, would create a great storyline and a have an impact on sales. Lipman concludes, “The Saints are the nation’s sentimental favorites and their wide-open offensive power and playmakers will make the Super Bowl a must-see!”

Lipman sees ticket sales in the range of $2000 - $5000, based upon which teams go head-to-head. But like most ticket brokers are likely doing, he’s hoping that the Jets make it all the way, where he foresees tickets being driven as high as $12,000 per person for 50-yard line clubs and luxury suites.

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(at)ticketsofamerica(dot)com.

• Several NFL people have expressed skepticism about whether Daunte Culpepper — whose decision-making and ability to make quick reads have been questioned — will be a good fit for Cam Cameron’s offense.

• Some NFL people have wondered whether Dom Capers will earn more than Cameron. But that’s not the case, the Dolphins told an involved official. Former Packers GM Ron Wolf said there’s no way a team can pay an assistant more than the head coach: “I don’t care if the head coach is 20 years old.”

• Eddie Jones has spoken to Memphis about a buyout, and the Heat is expected to explore a potential return if he’s set free. Friends of Jones say a return appeals to him.

• The Dolphins’ dramatic increase on some club seats — resulting in some cancellations — is one of several price hikes for South Florida fans. General ticket prices also are expected to rise. Some Heat premium seats are skyrocketing (one floor seat owner is being raised from $62,500 to $89,250 per year for all AA Arena events). Tennis’ Sony Ericcson Open is raising prices for the first time since 2002 (by $5). And the CA Championship at Doral — now a prestigious World Golf Championship event — will charge $45 for adults per day, up from $25, $30 and $35.

• Tickets of America’s Michael Lipman said first-week demand is the highest in Super Bowl history, with upper-level end zone seats selling for $3,200 — $1,000 more than last year in Detroit.

• The lighter side: Practically everyone has a Super Bowl party here this week (including LeBron James on Wednesday at Mansion). The most star-studded? Probably the one by Shaquille O’Neal, who — with 790 The Ticket owner Joel Feinberg — is inviting 50 celebs to an exclusive dinner at Casa Casuarinas (formerly Versace Mansion) after Heat-Cavs on Thursday.

By Barry Jackson, Miami Herald.

January 28, 2007

Want a seat at the 50-yard line? Be prepared to shell out up to $10,000

Tickets for Super Bowl XLI have a face value of $600 and $700, but thousands of them are available at resale for prices of $3,000 and up.

The tickets have been in high demand for months, long before the participating teams were known, because the Feb. 4 game is in South Florida after two years in colder climates in Detroit last year and Jacksonville in 2005. Now, with the game pitting the Chicago Bears, who haven’t been to the big game since 1986, and the Indianapolis Colts, who’ve had a Super Bowl drought since 1971 when they were in Baltimore, ticket sellers say, demand is even higher.

As long as you’re willing to pay, there are tickets to be had through brokers, as part of travel packages or on auction Web sites.

In fact, some tickets may change hands a half dozen times or more before they end up being scanned at Dolphin Stadium on game day.

Here’s how: Dolphin Stadium has 70,000 seats for the game that are distributed by the NFL, with 17.5 percent each going to the Bears and Colts; 5 percent to the Dolphins as the host team; and 34.8 percent divided among the other 29 NFL teams. The league keeps the other 25.2 percent for a fan lottery, the NFL Players Association, the media, television networks and sponsors.

The teams decide how to distribute their allotment. The Dolphins entered all their season-ticket holders into a lottery for the opportunity to buy $600 upper deck seats. Entries were weighted based on how long they had been season-ticket holders and the number of tickets in their account. The NFL also held a lottery and offered tickets for sale to South Florida politicians. While everyone pays for tickets, even Dolphins owner H. Wayne Huizenga, sponsors and business partners have been holding contests for chances to win tickets.

After that, it’s up to the ticket-holders to decide whether to keep the tickets or re-sell them. “People get tickets from NFL personnel, corporate sponsors, from season ticket holders who won lotteries,” said Michael Lipman, CEO and president of Miami-based Tickets of America, which sells Super Bowl tickets, and White Glove International, which sells packages with tickets and hospitality.

Although Florida repealed its scalping law last summer, meaning there’s no longer a cap on the prices to resell tickets, ticket experts say that just means tickets don’t have to be included in packages with parties, limo rides or souvenirs. Lipman, who plans to sell 1,000 to 2,000 tickets, some in packages with a pregame party, said the original ticket-holder might sell his ticket to a broker for $2,500, who then resells it for $3,000 to $4,000. The process can be repeated several more times, particularly as supply and demand change in the days leading up to the game. Lipman calls it “playing the futures market.”

For example, corporations began buying up hotel and ticket packages months ago. In the weeks prior to the AFC and NFC championship games, the lower-priced tickets were selling for about $2,700. That shot up to $4,000 on Monday when the competing teams were identified, but then fell to $3,200 by Thursday. Lipman expects that price to stay fairly steady into next week, but rise again closer to the game, as Bears and Colts fans begin arriving and staying with friends and family in the hopes of scoring tickets.

Jennifer Swanson, marketing communications director for TicketsNow, an Illinois-based online marketplace for licensed ticket brokers to sell their tickets, said she was surprised to see the prices dip this week.

After upper-deck tickets reached $3,700 on Monday, they were down to $3,215 on Friday afternoon, and what had been a pool of 977 tickets rose to 1,828, she said. Fifty-yard-line tickets are still high, costing up to $10,000, she said. And the site has a suite for 50 people for $475,000, but even that’s down from $600,000 earlier this week. “This is a good time to buy,” Swanson said. “If this supply keeps up, this is going to level out. I don’t think we’re going to see another huge spike.” The early prices were higher than last year because of the draw of South Florida.

Robert Tuchman, CEO of TSE Sports & Entertainment, which arranges travel packages for dozens of Fortune 500 companies, is bringing more than 1,000 people to Super Bowl this year, up from the typical 400 or so. But Tuchman’s company, which includes hotels and a golf tournament in its packages, sets the prices long before the teams are known. He said the Bears, with their historically passionate fans, drive up his prices to get the tickets, but he said he thinks the Internet has helped open up the marketplace for Super Bowl tickets.

“In the past, people didn’t know where to go. They would have to call a broker on the phone or a ticket company,” Tuchman said. “It’s not about how hard it is to find them, it’s about how much are you willing to pay for them?”

By Sarah Talalay
South Florida Sun-Sentinel

Jeff Block is pensive about cashing in his life insurance policy, wistful about putting off his wedding engagement, fearful about making the big purchase.One thing the 31-year-old financial analyst is sure of: If he comes up with the cash to follow his beloved Chicago Bears to the Super Bowl, he won’t be buying tickets from a traditional scalper. His attention is focused on one of the many online ticket resellers.

The secondhand ticket market has grown up a lot in the last decade, shifting from a business largely conducted by salesmen lurking outside stadiums to one chiefly online, both in simple Craigslist postings and more sophisticated Internet databases.

“The street business has really died,” said Don Vaccaro, who has been selling tickets since 1979 and is the founder and chief executive of Vernon, Conn.-based TicketLiquidator.com. “The old-time brokers are saying, ‘Look, you got a bunch of geeks selling tickets now.’ It’s really a lot more brains going in now.”

There are about 70,000 seats at the Feb. 4 game, but ticket distribution is tightly controlled by the NFL: 25.2 percent to the league itself, largely for sponsors, licensees and the like; 17.5 percent each to the two competing teams, the Chicago Bears and Indianapolis Colts, with some raffled off to season ticket holders; 5 percent to the host Miami Dolphins; and 1.2 percent to each of the remaining 29 NFL teams.

Many of those lucky enough to get tickets when they’re first sold won’t part with them. Princeton University economist Alan Krueger studied the ticket market during the 2001 Super Bowl in Tampa and found only about 20 percent of seats were resold.

“People were very reluctant to sell their ticket,” he said. “If they won their ticket in the lottery they acted as if they were chosen by God to go to the game.”

That leaves desperate fans with a choice: Pay up or park yourself on your couch.

If they choose the former, and turn to a broker, they will be buying tickets that have been marked up at least twice _ by the original holder or holders and then again by the resale company, which typically tries to secure a price 20 percent to 30 percent higher than it paid. The result is upper-level seats from around $3,000 to luxury sideline suites for over a half-million dollars, though the average regular Super Bowl ticket sold online is about $5,115, according to an analysis by SeatSmart.com, an online ticket search site.

The face value of all Super Bowl tickets is $600 or $700.

The National Association of Ticket Brokers says there are about 600 brokers nationwide; those in the industry say their online presence has increased competition and pricing transparency. They say _believe it or not _ tickets used to be marked up even more.

“It used to be, buy a ticket, triple your profit,” Vaccaro said. “Now it’s buy a ticket and you’re lucky if you get 20 percent.”

If that isn’t pulling at your heartstrings, consider the rate at which some companies are growing. Mike Domek started his company in 1992, generating $100,000 in sales its first year. Last year, Crystal Lake, Ill.-based TicketsNow.com hit $200 million in revenue.

And it’s not just big sporting events like the Super Bowl, the World Cup or the Masters adding to their bottom lines. While Domek made more on the Super Bowl last year than any other single event, tickets to the musical “Wicked” collectively generated more revenue than anything else.

Mike Janes, a senior vice president at online ticket broker StubHub.com, said people will spend the money because such tickets are seen as admittance to a once-in-a-lifetime experience. StubHub was recently purchased by eBay Inc. for $310 million.

“People spend a lot of money, thousands of dollars quite often, for experiences like going to Hawaii, going on a cruise, going to Las Vegas, going to Disney World,” Janes said. “Fans, especially passionate fans, think nothing of spending that amount of money on an event like this.”

Gene Kudron, a 49-year-old who lives in Winfield, Ill., and owns a small manufacturing company, is among those who decided it’s worth the cost. He bought four Super Bowl packages on RazorGator.com for a total of $24,800.

“I had it up on the screen and I didn’t hit that button for probably 10 minutes,” he said. “I tried to justify it 15 different ways but it’s an opportunity I probably won’t have again.”

Though much of the initial allotment of Super Bowl tickets is going to corporate buyers, many of the resold ones are, too. Companies buy them up to reward clients and employees and brokers say they account for most of the business up until the two weeks before the Super bowl.

“They’re the only ones who will allocate funds no matter what team is involved,” said Michael Lipman, president of Miami-based TicketsOfAmerica.com.

Lipman will sell about 20 to 40 game tickets to Richard Bennetti, chief executive of Ocean Drive Limousine in Miami, who gives them to clients. Bennetti says it keeps customers interested in his business by giving them an unmatchable experience.

“It’s like giving a small baby its first taste of ice cream,” he said.

The majority of states have no price cap on ticket resales by brokers; Florida eased its rules last year and some other remaining ones appear poised to follow. Still, companies can often get around any restrictions by offering travel packages, with tickets, airfare, a hotel room and other perks bundled together. Scalpers who work right outside events typically face tougher constraints, but overall the legal environment has become friendlier.

“The clear trend,” said Gary Adler, a lobbyist and attorney for the National Association of Ticket Brokers, “is toward opening up markets.”

Krueger said his survey showed most fans support a legal ticket resale market but don’t want to see the NFL charge more. Many argue the league could improve the Super Bowl situation by giving more tickets directly to fans, but Brian McCarthy, an NFL spokesman, said there will never be enough.

“If we could build a stadium for 400,000 fans we still wouldn’t have enough tickets,” he said.

As for Block, he was still struggling with his decision as game day neared. He was worried more about the cost than upsetting his girlfriend.

“She puts up with a lot,” he said.

By MATT SEDENSKY

from Associated Press