The San Francisco 49ers are building a new stadium in Santa
Clara, California. The stadium is
projected to open in 2014 for the NFL season. It is estimated to hold 68,500 seats, and to be expandable
to hold approximately 75,000 in order to host major events (Super Bowl, FIFA World Cup, etc). It is estimated
to cost more than $1 billion. The
San Francisco 49ers believe that they can generate half a billion dollars in
seat licenses. A personal seat
license (PSL) essentially gives the holder the right to buy season tickets for
a specific seat in the stadium. If
the 49ers generate this money that they are expected to, this will be the
second highest such revenue, just behind the Dallas Cowboys.
What I thought was interesting about this idea was how much
money PSLs generate for the team. The
Santa Clara Stadium has basically sold out premium inventory two years before
the facility is even scheduled to open.
A majority of their stadium-building funds come from PSLs. Before learning
about this new stadium, I did not know what a personal seat license was. I had no idea that this revenue
generating strategy even existed- I thought season ticket holders just bought
their tickets and that was it.
I thought it would be interesting to compare the 49ers PSLs
with other big time NFL teams. I
found that at a meeting that took place on February 13th, the team
demonstrated that the Dallas Cowboys raised $600 million in PSLs, the 49ers are
estimated to generate $500 million, and the Jets and Giants both around $400
million. Half a billion dollars from JUST seat licenses? That’s insane.
This made me realize how competitive the sports industry really
is. The 49ers are adding on
additional fees for seat licenses, just so they can build a huge, over-the-top
stadium. What is wrong with their
old one? Most sports teams are going to extremes to be the biggest and the best- they all have
one goal in mind- to generate revenue.
Personally, I do not agree with this idea of seat licenses. If you buy season tickets, why do you
need to also buy the right to use the seat? Is this really necessary, or is the sport industry simply
exploiting their loyal fans just to make a profit? They are all racing to be on top.
-Brooke Kranz
I would like to disagree with your post because I feel that choosing your own seat, rather than being randomly placed with other season ticket owners, is a great idea. First of all, choosing seats personalizes the experience for season ticket purchasers by giving them a row and seat number that they can truly call their own until the stadium no longer holds the team or until they sell the license. This gives groups of people the chance to buy season tickets near each other while paying for them separately, and it adds a new level to fandom.
ReplyDeleteIf I had season tickets to my favorite team's games, I'd love to have a seat that is truly mine, and that I can pass down to others or sell for a sizable sum. If my money is going towards building a new stadium that enhances the viewing experience and helps my team, even better. I could consider myself a part of the funding process and build friendships with the fans who bought the seats around mine.
This seems like a genius way to fund a stadium, and give the most dedicated and financially sound fans a chance to enhance the experience of being a fan. Your team, your stadium, your seat.