After six games of seeing their most expensive seats sitting empty, the New York Yankees have lowered prices significantly, compared to their original pricing structure. According to The Associated Press:
The team on Tuesday slashed the price of 48 first-row Legends Suite season seats on the outer half of the dugouts and photo cages from $2,500 to $1,250, and 68 others in the final three sections down each foul line from $1,000 to $650.
"There are a few hundred suite seats in our premium locations that have not been sold on a full season basis," Yankees managing general partner Hal Steinbrenner said in a statement. "As a result, and for many of our fans who have already purchased full season suite seats in such premium locations, the Yankees are announcing today a program that adjusts certain prices and benefits."
Based upon the price reductions, the Yankees lose $60,000 in potential revenue per game for the most expensive seats, and $23,800 for the seats in the final sections down the dugout lines. With six games having been played in the new ballpark, and factoring in no loss of games over the course of the season due to weather, the Yankees will play 75 more games this season in the new stadium. Based upon that home game count, the total potential revenue loss due to the cuts is $4,500,000 for the Legends Suite seats, and $1,785,000 for the sections down the foul pole lines. Total potential loss? $6,285,000 in premium ticket revenues.
Of course, the key phrase here is “potential loss.” The lost revenue assumes that the seats are filled, which of course, they have not been. Whether cutting prices in half is enough for the Legends Suite section to fill up is a looming question. Is it that someone is now saying, “Gee, $1,250 per game is such a fantastic deal! I can’t pass this up.”? Chances are that a larger majority of the seats will now have fans sitting within them, but as to whether all of them are filled… time will tell.
Fans should not get used to such “cuts” in prices. The Yankees have said that the cuts will be for this season, only.
Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.
Don't forget to register and log in on The Biz of Baseball site to get updates via your in-box, and see information only logged in members can see.
Subscribe to The Biz of Baseball, and follow the Business of Sports Network on Twitter