November 01, 2002
Steinbrenner's voodoo economics
Economics isn't really that hard: Sellers set prices to the highest possible level without scaring off buyers. So it stands to reason that if a ballclub is already charging the optimum amount for tickets, raising prices won't help any - the team will make more from fans who do show up, sure, but it will lose just as much from those who are priced out of the market. So raising ticket prices to cover increased costs - whether it's a new free-agent contract or increased revenue-sharing costs - makes no economic sense. But that's not to say it doesn't make a fine way to divert the blame, as the Yankees proved yet again today. Interestingly, the Yanks coupled their price hikes with discounts for advance purchases, presumably an attempt to keep fans desperate for advance tickets, and avoid the ticket freefall that teams like the Indians and Orioles have run into once sellouts were no longer the norm.
