Over at The Hardball Times, Chris Jaffe wrote an excellent, but highly depressing article entitled “The cost of gouging”. The subject is a ripoff we all have encountered with regularity – the confusing and frustrating add-on costs affixed to ticket purchases.
Jaffe researched “order processing charges” and the stick-in-your-eye-named “convenience fees” charged by Major League Baseball clubs for ticket transactions made online or via telephone. Some clubs even assess a surcharge depending on how you want to pick up your ticket. In his work, Jaffe chose the least expensive tickets for comparison.
In these challenging economic times, over half of the 30 MLB clubs either held the line on “gouging fees” from 2008 (seven teams) or actually decreased them (nine) compared to last season, but not the St. Louis Cardinals.
The Cardinals tied the Baltimore Orioles for the eighth-highest such fees across Major League Baseball at $8.00 per ticket, up 50 cents from 2008. Half of that is convenience fee and half is labeled order processing.
At the other end of the spectrum, the Milwaukee Brewers charge just $2.00 per ticket for order processing and that is it. No bogus “convenience fee” that is just another way to rip off the ticket-buying public.
What really got my blood boiling was Jaffe’s report that the add-on charges are generally not constant. In other words, as you move up the ticket price spectrum, the fees usually increase, too.
Think about that. How could it cost more to process a $100 ticket compared to a $30 ticket? For whom is $100 more convenient? In addition, these gaps are generally growing wider each year.
In this case, the Cardinals receive a nod, as they are one of just four MLB clubs that hold “gouging fees” at the same level despite the price of the ticket, according to THT.
Another recent article, at The New York Times, noted the San Francisco Giants are experimenting with dynamic ticket pricing. This concept is not unlike the one used by airlines, where prices are lowered or raised regularly based on changes in demand – potentially right up until game time.
As a result, like in air travel, every fan may have paid a different price for his or her seat compared to the person sitting next to them. Not surprisingly, the Giants feel they can bring in more money this way.
Clubs are driven to be even more creative since their in-house ticket reselling services were forcibly submerged when MLB signed a five-year exclusive deal with StubHub, a unit of eBay, last year.
For example, the Giants had DPTW, “Double Play Ticket Window”, while the Cardinals called their service “Prime Seat Club”. Now all sanctioned MLB ticket reselling is administered from one place – at the top.
While Bud Selig catches a lot of heat in some quarters, including here, this is yet another reminder of the rarity of him missing an opportunity to grab a piece of the financial pie.
A final observation made by Jaffe was also about the Giants. Their declining ticket surcharges caused me to pause and consider “What if?”
“If you’re curious, San Fran used to be able to charge huge extra fees when Barry Bonds was around,” Jaffe observed.
Of course, the Cardinals currently have under contract the services of Bonds’ heir apparent as the best player in the National League and all of MLB, Albert Pujols. No later than following the 2011 season, Pujols will receive a new multi-year deal – one that may surpass any other in terms of years and dollars.
It has been assumed by many that the Cardinals will cover the increased cost of Pujols’ new contract by cutting payroll through not signing veterans as well as by deploying more lower-cost replacement players developed through an improving farm system.
While that may or may not be the case, even if it is, what if it isn’t enough?
What if the Cardinals also decide to hit fans directly for some or all of the increased cost of keeping Pujols by jacking up their “gouging fees” as the Giants did at the height of Bonds’ popularity?
Would you be angry enough to go Howard Beale or would you be willing to pay two or three bucks more per ticket to help keep Albert in St. Louis?
There was a thread similar to this started over at the Birdhouse by a guy who has consistently been a basher of the team’s ownership. He was asking about what people would think of a separate line shown as opposed to a straight increase in ticket prices. I considered it thinly veiled shot at DeWitt and, as the new kinder and gentler (ver. 3.2) DizzyDean17, I chose not to participate in the thread.
I wouldn’t be surprised if tickets went up by that $2-3 amount. We’re talking $6-9M added revenue.
At the same time, we witnessed something in 2008 that hadn’t happened in nearly 80 years, dramatic decreases in stocks, property values, etc. Many of lost more (on paper) in net worth in the span of a few months than we had earned in the first thirty (or more) years of our lives.
The players that signed early last winter (Ibanez and Lohse) got some nice contracts. Many of the middle tier players that signed later settled for a lot less than they expected. A few still haven’t signed. The market has made a huge correction and while Albert figures to get a huge contract, many of the guys that surround him (on whatever team he plays for) may likely be playing for somewhat less than what players were making before the winter of 08-09.
The idea of the poster who initiated the thread at The Birdhouse was for the community to raise the extra money though a voluntary surcharge at restaurants and the like as opposed to higher ticket prices. I did post a teaser for this article on that thread because I had already completed this, inspired by a couple of news items from last week and didn’t want folks to think I copied the idea.
I didn’t see that post as a bash against ownership any more than this blog entry is. I consider it a fair question. As I noted with Bonds in San Francisco, it has already been done, where “it” is charging fans more per ticket to see their star attraction.
Brian, I had a brilliant well-thought out response that was lost due to a computer crash – one of several today. I hope rebooting has taken care of the issue.
You only need to look at the signature of the Birdhouse poster to see his agenda. I don’t trust him at all. Had that thread been written by you, there would have been no question on my part. IMO he was simply looking for a chance to take a shot at DeWitt.
I’m not sure what your point is concerning Pujols, though, when it comes to varying charges for “convenience” or “service” fees. They have become a fact of life. I paid a $0.45 service fee to fill my gas tank yesterday with my debit card. I can’t go through the checkout line at the supermarket without being asked for a donation by the computer and another by the cashier, not to mention running the gauntlet outside the store among the Salvation Army, Disabled Veterans ( a bad reference on Memorial Day, especially from a proud veteran), Girls Scouts and Little Leaguers selling candy bars along with whoever else can queue up for a handout.
I am also my designated neighborhood’s beggar for Leukemia & Lymphoma Society for the last three or four years. Care to donate? Tell ya what, I’ll break the chain and send you a self-addressed stamped envelope and guarantee no service or convenience charge.
Forgot to mention this: “Happy Memorial Day, everyone” and like so many other holidays it seems, let’s not forget the reason for its existence. Our freedoms and those who fought for them should never be taken for granted.
This is an interesting discussion about raising money for Albert. Is it intended to humiliate him? You are right to question its origins. The very concept has huge deconstruction implications for the term “Hero”. Any talk about special fees will send him out of here faster you can count three strikes on Chris Duncan.
How about if the owners pay a “convenience” fee to the fans in appreciation for their attendance
at the games ?
Plus an “inconvenience” fee for all the silly blackouts of games.
I do think fans would be willing to pay a little extra on tickets to help pay for Mr. Pujols new contract, but the owners have much deeper pockets than most of the people attending any given game.
I like the “inconvenience fee” thought, chief!
I agree that Pujols would likely react badly to any fees directly tied to him, but I don’t think when the Giants jacked up their “convenience” charges, they even hinted about Bonds. Probably just coincidence.
Bonds has the personality that would probably be flattered by “special fees”. He would use a different color uniform if they would let him. Oddly enough, if you wanted to keep Pujols, you would go out right now and sign Bonds for the minimum and put him in left field. The fireworks would be spectacular. Albert would be in heaven. Some don’t like Barry Lamar, but I take him for a teammate any day. He puts it on the line.
Pretty good game today. Chris Duncan as clean up is Tony searching for punishment. Also, Kmac with the try at two innings and in trouble, I don’t know but it sure seems like everything was up. I give him a break with runners on 1st and 3rd. We have the starting pitching to control this division. We do not have the hitters. Chris Duncan isn’t the man, Colby lacks maturity, Ankiel is sore huh…….right……….. Tony had him read perfectly, then he changes his mind. We could have the same game tomorrow, then what?
Duncan bats cleanup, because best for the job. The offense will gain from Ludwick’s return.
What are his numbers at clean Jumbo? If Chris Duncan’s personal battles with the baseball God is what a successful season for this team depends on, we are in a world of hurt. When your personal trainer’s name is Heimlich, its time take a look. Ludwick just takes some pressure of Chris, he can’t hide him, or his defense. What if Waino loses back to back games with no run support? These guys will hurt themselves trying to stay in too long.
Duncan is 2nd on the team in extra base hits. His OPS is 773, about 75 points lower than he would like, but acceptable. At least Duncan is playing, unlike Glaus, Freese, Mather, Ludwick, Ankiel.
If Wainwright loses back to back games, then he loses back to back games. It is what it is. We need to get Ludwick and Ankiel healthy. With more hitting in the lineup, everyone will hit more. Hitting is contagious.
“It is what it is?” Bingo!!!! I watched Kennedy play today. 26/59…….He still reflected the same attitudes that were so unpopular here. He took some nice swings though.
Hey Jumbo, Chris is hitting second……… I’m very curious as what this day will bring for K. Greene. A very revealing game coming our way. High entertainment. Tony will have asked Chris to be looking center ally. Singles. Watch. He told Colby to screw it down on his last at bat, looked at three strikes. Maybe back off a little. Just a little.
3rd inning. Wanio is grinding. The second inning error by Greene bothered him. He will defiantly not go past 6th if that.
Man, with a little help from your friends. I’m interested to see how the homer effects Wainwright.
Couldn’t help but notice that Live Nation’s “No Service Fee” special offer still includes service fees, including a fee for parking even if you don’t drive to the show. Ripoff city. Link to CNN.