Secondary Ticket Market. Today Primary vs Secondary Ticket market Secondary market players Ethics...

Secondary Ticket Market

Today

• Primary vs Secondary Ticket market

• Secondary market players

• Ethics and economics

• Predicting prices

What is the difference between the Primary and Secondary markets?

Players on the secondary market

• Ticket scalpers• Season ticket holders• Stubhub, RazorGator, TicketExchange etc• Teams themselves

Ethics and Economics

Your thoughts on the secondary market

Argument against secondary market• Price gouging• Counterfeit tickets• Stolen tickets

Argument for secondary market

• Greater chance of higher attendance• Free, open market• Encourages season ticket buying

Negotiation tactics?

Why do teams care if people use their tickets?• Fan Cost Index• Retention• Game atmosphere

Price fluctuations

Availability

Variable and Dynamic Ticket Pricing

• Only refers to primary market. Price set by team on initial sale of ticket.

• Variable ticket pricing: Prior to the season, teams set different prices on similar tickets for different games depending on competition, time/date, etc.• Priced once and doesn’t change

• Dynamic ticket pricing: As the game nears, price fluctuates based on a number of variables.• Price constantly changes

Take away

• Secondary market is nearly unstoppable, but that may not be a bad thing. Market forces inevitably win.

• Teams are generally ok with secondary market, but are finding ways to make more money off changing market forces.

• Assignment on Variable and Dynamic Ticket Pricing due Tuesday

• Exam and Projects graded. Will be entered soon.