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The Laws and Policy of Professional Sports Ticket Prices University of Michigan Journal of Law Reform Volume 39 2005 Take Us Back to the Ball Game: The Laws and Policy of Professional Sports Ticket Prices Nathan R. Scott California Court of Appeal Follow this and additional works at: https://repository.law.umich.edu/mjlr Part of the Consumer Protection Law Commons, Entertainment, Arts, and Sports Law Commons, and the Legislation Commons Recommended Citation Nathan R. Scott, Take Us Back to the Ball Game: The Laws and Policy of Professional Sports Ticket Prices, 39 U. MICH. J. L. REFORM 37 (2005). Available at: https://repository.law.umich.edu/mjlr/vol39/iss1/3 This Article is brought to you for free and open access by the University of Michigan Journal of Law Reform at University of Michigan Law School Scholarship Repository. It has been accepted for inclusion in University of Michigan Journal of Law Reform by an authorized editor of University of Michigan Law School Scholarship Repository. For more information, please contact [email protected]. TAKE US BACK TO THE BALL GAME: THE LAWS AND POLICY OF PROFESSIONAL SPORTS TICKET PRICES Nathan R. Scott* The prices of professionalsports tickets have skyrocketed in recent years, depriving many fans of the time-honored tradition of taking theirfamilies out to a ball game. This Article argues that legal reform and political action are appropriateresponses to these soaringprices. First, the Article rebuts the threshold objection that economics alone justify current ticket prices. Professional sports teams reap a windfall from the public through corporate welfare, special-interest legislation, and favorable antitrust and tax laws. This preferentiallegal treatment undercuts the argument that teams are sim- ply charging, or should charge, what the market will bear. In addition, teams cannot blame ticket prices on high player salaries, because the market for tickets is economically distinctfrom the market for players. Next, the Article evaluatesfour possible legal or political responses to ticket prices: regulating professional sports leagues, eliminating their preferential legal treat- ment, taking individual teams through eminent domain, and encouraging local team ownership. It concludes thatfans will be best able to keep tickets affordable by encouraginglocal governments, which have spent billions of dollars on stadium construction, to consider buying teams of their own. INTRODUCTION The family outing to the local big-league game, once a staple of American life, is being lost. Ticket prices to professional sporting events have skyrocketed beyond the reach of the average fan. Fans who paid $1.50 as a child to watch their favorite team must now pay $150 or more to bring their children to a game. Even these steeply- priced tickets are becoming harder to find, as many teams now require fans to purchase season tickets or personal seat licenses. Fans also find themselves competing for stadium space with corpo- rations who can afford $100,000 or more for luxury boxes. * Appellate Court Attorney, California Court of Appeal. BA., University of Califor- nia, Los Angeles; J.D., Harvard Law School. I thank my father, John Scott, for suggesting this topic; Paul C. Weiler, HenryJ. Friendly Professor of Law, Harvard Law School, for encourag- ing and reviewing an earlier version of this article; and my wife, Mary Scott, for her support. University of MichiganJournal of Law Reform [VOL. 39:1 Despite the growing commentary on sports and the law, the problem of soaring ticket prices has attracted relatively little aca- demic attention. The lack of scholarly commentary is likely due to two common, but flawed, perceptions. The first misperception sees ticket pricing as solely an economic phenomenon, not a legal is- sue. This view overlooks the windfall professional sports teams gain through preferential legal treatment, such as special interest legis- lation and court-sanctioned monopoly status. The second misperception sees soaring ticket prices as necessary financial off- sets to higher player salaries. This assessment fails to recognize that the economic market for ticket prices and the economic market for player salaries are largely unrelated. This article explores the ticket-pricing problem, rebuts the con- ventional wisdom that the problem is not a legitimate legal issue, and suggests possible legal responses to make ticket prices afford- able to the regular fan. It concludes that local government ownership of professional sports teams may best protect fans' abil- ity to take their families out to the ball game. I. ASSESSING THE TICKET PRICING PROBLEM Is there a "problem" with professional sports ticket prices? There is for the regular fan, as it is now "standard practice for teams to target affluent professionals as their primary clientele and to charge prices that are beyond the means of average working fami- lies. Middle and lower-income fans are thus being priced out of the game."' Part L.A reviews the soaring ticket prices in the four major professional sports leagues: Major League Baseball (MLB), the Na- tional Football League (NFL), the National Basketball Association (NBA), and the National Hockey League (NHL). Part I.B analyzes the growing prevalence of premium seating, which further prices regular fans out of the game. A. The Current State of ProfessionalSports Ticket Prices When Curly Lambeau's football team (sponsored by the Indian Packing Company) first took the field in 1919, he literally passed a 1. Brian Cheffins, Playing the Stock Market: "GoingPublic" and Professional Sports Teams, 24J. CORP. L. 641, 679 (1999) (citing Dan McGraw, Big League Troubles, U.S. NEWS & WORLD REP.,July 13, 1998, at 40). FALL 2005] Take Us Back to the Ball Game hat among spectators to raise money. By 2004, the average ticket to a Green Bay Packers game cost $54.40.s This price did not in- clude $25 for parking.4 The Packers raised their ticket prices for the 2005 season, and now the cheapest seats will cost $54.5 Fans wish- ing to watch a game on the "frozen tundra of Lambeau Field" in heated comfort can pay hundreds of dollars more for an indoor club seat-the exact price depends on the terms of the team's multi-year leases with its season ticket holders.6 Despite the price hike, Green Bay Packers's tickets are a bargain compared to tickets for the New England Patriots. The average ticket to a New England Patriots game cost $75.33 in 2004, not in- cluding $35 for parking.7 At least fans who could afford $110 to watch the Patriots got to watch a championship team, winners of three of the last four Super Bowls.8 Fans of the mediocre Kansas City Chiefs (7 wins, 9 losses in 2004), Washington Redskins (6-10), New York Giants (6-10), and Chicago Bears (5-11) still paid more than $65 for the average ticket.9 Even the hapless San Francisco 49ers, who won 2 games and lost 14 in 2004, charged $64 for the average ticket.10 Overall, the average NFL ticket cost $54.75 in 2004." Out of all of the professional sports, fans pay the highest prices for NFL tickets, as each team plays only eight regular-season home games.12 Prices are somewhat lower in the NBA or NHL, whose teams play 41 regular-season home games.13 The average ticket to an NBA 2. Packers.com, Green Bay Packers: Birth of a Team and a Legend, http:// www.packers.com/history/birth-of_ a_teamand_a_legend (last visited Nov. 25, 2005). 3. TEAM MKTG. REPORT, FAN COST INDEX: NATIONAL FOOTBALL LEAGUE 2004 (2004), available at http://www.teammarketing.com/fci.cfm?page=fci-nfl_04.cfm [hereinafter FAN COST INDEX, NFL 2004]. 4. Id. 5. Tony Walter, Packers Boost Ticket Prices $4, GREEN BAY PREss-GAZETrE, Mar. 9, 2005, at AL, availableat 2005 WLNR 3802323 (Westlaw). 6. Id. The "frozen tundra" is a moniker for Lanbeau Field made famous by John Facenda, the legendary narrator for NFL Films programs. Fans have bestowed upon Facenda his own impressive nickname-"the voice of God." Eric Fisher, Branching Out: NFL Films Does More than Just Football Games, WASH. TIMES, Sept. 19, 2002, at CO. 7. FAN COST INDEX, NFL 2004, supra note 3. 8. Bob Ryan, "D"forDominance, Not Dynasty, BOSTON GLOBE, Feb. 7, 2005, at El. 9. FAN COST INDEX, NFL 2004, supra note 3; see also NAT'L FOOTBALL LEAGUE, 2004 REGULAR SEASON STANDINGS (2004), available at http://www.nfl.com/standings/2004/ regular [hereinafter 2004 NFL STANDINGS]. 10. 2004 NFL STANDINGS, supra note 9; FAN COST INDEX, NFL 2004, supranote 3. 11. FAN COST INDEX, NFL 2004, supra note 3. 12. Stephen M. Carr & Timothy F. Cummins, Professional Sports Franchises Still Present Unique Valuation Problems, 5 VALUATION STRATEGIES 6 (2001), available at 2001 WL 1468679. 13. Id. 40 University of MichiganJournal of Law Reform [VOL. 39:1 game cost $45.28 in 2004; an average NHL ticket cost $43.57.14 The NBA's Los Angeles Lakers charged the highest average ticket price in professional sports: $75.40.'" These highly-priced tickets just get you in the door: the cost of actually attending an NFL, NBA, or NHL game is much higher. The Fan Cost Index (FCI) estimates the total cost for a family of four to attend a game, including typical expenditures on parking, tickets, concessions, and souvenirs. 6 The 2004 FCI was $321.62 for NFL games, $263.44 for NBA games, and $253.65 for NHL games. 17 Seven NFL teams had a 2004 FCI above $350; seven NBA teams and five NHL teams had a 2004 FCI above $300.18 Even Major League Baseball, historically the most affordable of the four major professional sports leagues because its teams play the most home games, is pricing its regular fans out of the ball- park." The average ticket to a 2004 MLB game cost $19.82, and the average 2004 FCI for a family of four to watch a MLB game was $155.71.20 Fans of the 2004 World Series champion Boston Red Sox paid more than $40 for the average ticket, the highest price in MLB.21 Fans of the Philadelphia Phillies paid $26.08 for the average ticket in 2004, only to watch their team finish 10 games out of first place in the National League's East Division.22 The $26.08 ticket price represents a whopping 51.26% increase over the Phillies's 14.
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