ESPN reported yesterday that the owners of the Los Angeles Chargers, noticing the distinct lack of enthusiasm with which they’ve been met in their new home, were downgrading their initial revenue goals at the Inglewood stadium set to open in 2020 from $400 million to $150 million. And on cue, the Chargers announced yesterday that they were setting ticket prices and seat license fees at the new stadium significantly lower than the rival Rams:
The least-expensive general seating season ticket in the new Inglewood stadium will cost $50 per game and require a one-time personal seat license fee of $100…
The Chargers will share the new facility with the Rams, who last month announced their season tickets will start at $60 a game, with personal seat licenses beginning at $1,000.
I’m not actually sure what “initial revenue” means in that ESPN report, and the site didn’t specify — each NFL team gets $250 million just in TV revenue, so maybe it means first-year stadium revenue, or maybe it means the initial take from PSL sales. If the latter, that would make sense, since the biggest discounts appear to be on the seat-license side, where allowing cut-rate prices is going to seriously cut into the team’s cash flow, especially once fans realize they can get in for a $100 one-time fee and then balk at paying higher PSLs for better seats.
Team execs are spinning this as a way to make Chargers fans more likely to use their tickets themselves instead of selling them to out-of-town fans to recoup their costs, but I’m not sure that microeconomics works that way: It seems just as likely that this will goose sales to ticket speculators who will now figure, “Hey, for only a $100 fee I can get a steady supply of tickets to sell to visiting fans who actually want to see Chargers games, unlike people around here!”
All of which is only likely to stir more murmurings that maybe the Chargers picked the wrong city to move to — or, you know, shouldn’t have moved at all. Turns out that sometimes shooting the hostages doesn’t work out that well.