This is an archived version of a Field of Schemes article. Comments on this page are closed. To find the current version of the article with updated comments, click here.
October 29, 2010
Yankees garages hike fees 50% to stave off default
I didn't believe it back in September, but it looks like it's for real: The money-losing parking garages built to accompany the New York Yankees' new stadium are going to attempt to avoid defaulting on their bond payments by hiking parking fees by 50%, reports the New York Daily News' Juan Gonzalez. Starting next April, self-parking will be $35, while valet parking will be $45.
Of course, it's introductory economics that you can only make money by raising prices if the market will bear it, and as Gonzalez notes, that's unlikely to happen in this case:
Somehow, Mayor Bloomberg's economic experts never envisioned when they arranged the new Yankee Stadium deal that so many fans would shun the new overpriced garages. More fans are taking the subway or Metro-North to the games or parking at the much cheaper Gateway Shopping Mall several blocks south of the stadium than anyone predicted.
The new rates will only accelerate that flight.
Remember, the Yankees reached the playoffs this year, yet only about 60% of the parking system was filled on an average day.
So the city, and its private garage developer partners, ended up building a parking garage that can't possibly pay for itself at the kind of parking rates that people are willing to pay. Wow, who could possibly have seen that coming?
Well, they can avoid the "subway problem" by tripling the price of subway tickets. Problem solved.
/sarcasm
Posted by MikeM on October 29, 2010 05:49 PM
Family who live about 1 mile from Miller Park say that fans will park in neighborhoods and walk long distances to avoid paying even $5 to park closer. People would rather spend their money on food etc. than on parking.
Posted by SantaClaraTaxpayer on October 29, 2010 06:48 PM
The real Yankee Stadium would have just about 55,000 on a regular basis. Up until a couple of years ago you could pay about $10 bucks not so far away. Parking was very tough if you didn't get to the Stadium early enough.
Now at the fake Yankee Stadium they might have 42,000 fans in the stadium on a given night with all the unsold seats,no shows, and ticket brokers stuck with no customers.
So the point is that you have garages where you can't just pay a human being making minimum wage. You have to cut that person out to some extent and force your patrons to obtain a parking ticket from a vending machine. Real bright by making your parking customers have to go through a process and charge at least $23. Plus they raise it to $40 during the playoffs!
So with about 10,000 less fans just about every night, double the price to park(triple next year) and more fans taking the train you have your answer. They are killing the goose that laid many golden eggs.
Posted by Sad Yankee Fan on November 1, 2010 09:26 PM