We spoke with local New Jersey ticket broker Tom Patania who is President and CEO of SelectATicket.com about what influences Super Bowl ticket prices. His company has been buying and selling tickets for 35 years and this will be their 30th Super Bowl. They know what drives the ticket market for any given event. Much like the stock market, there are many elements which come together to cause prices to fluctuate over time. Super Bowl XLVIII will be held at MetLife Stadium on February 2, 2014.
Not surprisingly, a main factor is Supply and Demand. A basic economic principle, when there are more people looking to purchase tickets than there are tickets available, the price drives upward. Conversely, when there are more tickets available than fans looking to buy, the prices drop.
Many ticket brokers take orders in advance of a major event such as the Super Bowl, well before tickets become available. Select-A-Ticket started taking orders a year in advance. You can view current pricing for the Super Bowl and related events at http://www.selectaticket.com/Super-Bowl-Packages-and-Amenities. When the tickets do hit the market, those orders need to be filled and the trading begins. There are times when orders exceed the tickets and cause a spike in the ticket marketplace. There are also instances when all orders are filled and tickets remain on the market, creating a buyer’s market.
One of the major determining factors of Super Bowl ticket pricing is the city where the Super Bowl will be played. In markets such as New Orleans and Phoenix where there is only one airport and limited flights, coupled with last minute reservations, this causes higher prices that keep fans away. Limited availability on hotel rooms within a close proximity to the venue will also deter fans from coming due to the high prices with the inability to get a room close enough to the venue. For this year’s Super Bowl there are three major airports and more than 75,000 rooms in NYC (as reported on http://www.hanyc.org/) alone plus several thousand more North Jersey hotel rooms all within 20 miles of the venue. This eliminates flight and hotel availability as deterrents for fans coming in for the game. More fans with limited ticket availability would mean higher ticket prices.
Unlike past Super Bowls where there has only been a single team hosting the game, Super Bowl XLVIII will be hosted by two teams, the New York Giants and New York Jets. As a result, the ticket inventory typically allotted to the hosting team is now divided in two. Two states and two teams, you can imagine the requests.
The Super Bowl is annually a major draw for large corporations to entertain their best clients, many of which are headquartered on New York City’s Madison Avenue, Wall Street, etc. This year the game is coming to them which eliminates the need for hotel and travel costs and enables these corporations to potentially purchase more tickets for the same budget not having the travel related expenses.
Another factor that determines market price is the face value of the ticket which is set by the NFL. This year face values are reported to be the highest ever – as reported in the Newark Star Ledger on September 17, 2013.
Weather is a last minute factor in seasons when the Super Bowl is held in an open air stadium. Fans will recall the Super Bowl in Miami which was held in a driving rain storm. That is detrimental to last minute ticket sales and caused prices to drop the day of the game. This season’s game is the first modern day cold weather outdoor Super Bowl and could see snow, rain or sunshine. Weather is always a wildcard which won’t be known until the day of the game.
Last but not least, the participating teams obviously will influence the ticket prices. Some fanbases are known to travel while others may not. There are also several teams within driving distance of the area, which would both cut on travel expenses and increase the number of fans looking to purchase tickets. This season the closest teams to the area who are currently in the playoff hunt are New England and Philadelphia. Both teams boast strong fanbases which could easily travel in for the game. Current favorites include Denver, San Francisco and Seattle. All of these teams also have dedicated fans who would love to see their team in the Super Bowl.
These are some of the many factors that Influence Super Bowl ticket prices. It is akin to the stock market being in a short position if you have orders to fill or a long position if you’re holding inventory. In the end the market will determine the outcome of all winners and losers.