Jets Do the Right Thing
Are we going to be finally able to put the whole PSL talk behind us?
It could be in the next few weeks with the Jets recent discount of many of their remaining PSLs and season tickets. While it was announced that the Jets were going to be lowering ticket prices, they’ve also made a move that has to be lauded that they didn’t have to.
Fans who already purchased the 9,000 seats affected by the cuts will receive the reduced price.
"We think that’s only fair," Higgins said.
Last month, owner Woody Johnson told The AP he was confident the team would sell out the new stadium and avoid home games being blacked out by the time it plays Baltimore.
"We said a few weeks ago that there would be no blackouts and the reason why is we’re going to do what it takes to sell out," Higgins said. "We think it makes a lot more sense to make the adjustments you need to do prior to opening day than after opening day, when the cameras are rolling and there are certain sections that aren’t sold out."Higgins said this is not a panic move by the team after perhaps overestimating the market and fans’ wallets. The team made similar cuts to seats in the sideline corners a few months ago, and Higgins said those seats sold out within a few weeks.
Now don’t get me wrong, I still think PSLs are a terrible idea. For some time now we have been critical of the Jets and their moves to use PSL’s as a viable way to fund the stadium. We have to give credit where credit is due and say that the move to refund those who have already purchased PSL’s is the right move.
Now that the team has reduced the price of many of these PSL’s expect those sales to pick up quickly. I am still dubious at looking at PSL’s as an investment, but I think that this discounted PSL model is much more palatable to fans.
9 Responses to Jets Do the Right Thing
-
charleyjet says:
A move that has to be lauded? I guess if a pick pocket steals your wallet and then gives you car fare home you should thank him, huh?
-
Merc20 says:
My only problem with the PSL situation is that the stadium is co-owned. Jets and Giants fans should both be pissed.
You obviously can’t both have first dibs at concert events for the seat, so in essence there is no “Personal” in PSL. So what is the actual bonus to you over having no PSL like the old Meadowlands stadium?
-
dave b says:
My amateur non-finance background take:
The bonus is that you own a transferable interest in your seat (a license, not an ownership interest) that you can transfer at market price down the line, whereas before you couldn’t technically sell your season tickets to a third party for market price (above face), you had to relinquish them and let the team resell them.
So, if you had season tickets in 1990, and you held on to them for 10 years and tried to “sell” them in 2000, you wouldn’t have been able to. You just owned non-transferable rights to the tickets. If you didn’t want to renew, you didn’t have to, and the Jets sold them to someone else. Essentially, you were consuming your entire investment each year
Now, in addition to the tickets, you buy a license that you can sell when you don’t want to buy seasons any more, and I guess the idea is that you’ll be able to sell it for a gain, which is supposed to reflect the reward for investing with the stadium initially and holding onto the seat for a long time.
The market is so screwed up right now that prices are all over the place and it’s difficult to think that the prices are a true reflection of the value of a PSL. Like Basset, I’m dubious of the psl as investment jargon, and I personally decided to buy a PSL when they slashed end zone prices and an incredible seat popped up that I couldn’t turn down.
The whole thing is a crock, but it is what it is. I’m more worried about the Player’s Association and the possibility of a strike than whether I can get first dibs on Bon Jovi tickets and other terrible concert events.
-
…BUT I didn’t mean to rehash old wounds, these message boards have debated the merits and disadvantages of PSLs for a while.
Yes, it was the right thing to give the vested owners a cut in PSLs, but if they didn’t, there would have been a riot. I, personally, would have sharpened my ptichfork and marched down to Florham Park
-
Dave B,
You know what I guess I forgot about that. In all likelihood, it should go up in value so I guess with them slashing prices it does become more valuable in the future. That’s assuming they do the right thing and field a competitive team also.
-
The Ed(itor) says:
Believe me, PSLs are a terrible investment. In 30 years when the JETS build another new stadium, your PSL will be worthless. If you need to sell the license before 30 years, you won’t be able to sell them for anything near the cost you paid. A 50% discount will be common.
Thus you should amortize $2500 over 30 years to determine what your real cost of tickets will be. It is about $8.33 a ticket which try to recoup if you sell any tickets. That is in addition to the $40 to $60 per ticket increase from the old stadium. Plus the increase in parking to $25 per game. Thus a season ticket that would have cost $800 plus $200 for parking in 2009, now will cost you $1200 plus $250 for parking in 2010. And that is for 2010. My guess that is that cost will be $2000 in 2015. And what will your $2500 investment be worth then?? Not much!
The biggest problem iwith season tickets is the meaningless exhibition games which they sell you at the same price as a real game. Try to sell those tickets!!
So if you want to be subjected to unending ticket price and parking increases, go pay the PSL fee. For me, I will buy one regular season game a year on stub hub, probably pay less than face for the tickets and watch the rest of the games on my new 60″ Samsung TV. And I won’t have to pay $10 a bottle for beer.
-
Zenlaw says:
I hear what you are saying Ed, but some of us just want to be at the stadium in person to root for the best team in football.
-
Dave B.- you need to do a little research on PSLs in other markets. In no case did anyone make money on their “investment.” If this was really an investment you would be able to flip it immediately. But they won’t let you transfer it for one year.
If they raised the per game ticket prices the same amount as the PSL would be to pay off, I would pay for them at that price, forever, not just for 5 or 15 years. Yes, I’d pay more for no PSL. There is no reason to have one. What is the investment? I have upper bowl seats and can re-up every year too. In 40 years they’ll build a new stadium and the PSLs go away.