Michigan sells 86% of Sugar Bowl allotment and why I hate Stub Hub
It appears that Michigan has sold 86% of their share of Sugar Bowl tickets, which were sold mostly within the first few days. It also appears their sales may end there thanks to Stub Hub. While a ticket through Michigan will set you back $125.00, a fan can easily go on Stub Hub and get tickets as low as $15.00 a piece. I cannot believe tickets are going for this low, and it really screws the schools over. If I ever want a ticket from Stub Hub it always seems like they cost 5 times face value. Did I mention that I really hate Stub Hub ... oh yeah .. and all ticket brokers .. I hate all ticket brokers.
December 27th, 2011 at 4:28 PM ^
mention that you hated Stub Hub?
:-)
December 27th, 2011 at 6:12 PM ^
What he should really hate is a bowl system that extracts money from schools by forcing them to buy tickets that otherwise remain unsold.
December 27th, 2011 at 4:28 PM ^
You said you can get a ticket via Stub Hub for $15, but then said they cost five times face value on Stub Hub.
December 27th, 2011 at 4:32 PM ^
I said you can get a ticket for $15 to this game on Stub Hub .. which screws the schools over. Then I said it always seems like when I want to get a ticket on there they are always 5 times face value. Happens to be I cannot go to this game and tickets are only $15, but If I want to go to a game like the Wisconsin matchup or THE GAME .... tickets are outrageous
December 27th, 2011 at 5:04 PM ^
So is it really Stub Hub that you hate, or... um... the immutable laws of supply and demand?
December 27th, 2011 at 5:14 PM ^
...that Adam Smith and his invisible hand! Curses!
December 27th, 2011 at 5:55 PM ^
and pimp.
December 27th, 2011 at 5:56 PM ^
I think what he hates are monopolies.
If I want to get a ticket to a concert... maybe a Black Keys concert... I only have 1 option. I must buy from Stubhub. Stubhub knows this and can charge me as much as they see fit. This allows Stubhub to get an excessive profit.
When competition is introduced, like buying a ticket through Michigan rather than stubhub, stubhub can lower their prices illogically in order to squeeze out the competition. Stubhub is willing to take a very minimal profit, or even a loss, because it means less competition in the long run. They probably also benefit from the increased website traffic by selling ad space.
Stubhub is applying the brilliant (/s) principles established by Rockefeller, Carnegie, and J.P. Morgan.
December 27th, 2011 at 6:02 PM ^
Stubhub is not establishing any of the prices. They are merely a ticket broker. Other consumers are buying the tickets to the concert, and then selling it to you at a marked up price. Blame them.
December 27th, 2011 at 7:13 PM ^
stub hub makes 15% on the selling end and 10% on the buying end of ticket transactions. i'm sure they hate it when tickets go for cheap as well.
December 27th, 2011 at 6:05 PM ^
Dude, Stub Hub doesn't set the ticket prices -- the ticket holders do. There's tons of competition on price. Stub Hub is a glorified bulletin board in your dorm hall -- one that charges a fee for use. If you think the fee-for-use price is too high - fine. But you're totally wrong when you say that Stub Hub has a monopoly on tickets.
And Stub Hub isn't engaging in predatory pricing on the Michigan game to "squeeze out the competition." If it is, it's doing a pretty bad job, because Michigan is going to continue to sell tickets itself year after year.
December 27th, 2011 at 6:26 PM ^
Yes it screws over the schools, basically all bowls screw over the schools, unless your payout is 4 million from a BCS game.
What do you expect though? When you have a stadium of 70k and it's in a remote location for both schools there are going to be loads of tickets available. And when the supply is a plenty and the demand is short, the price will fall.
I love stubhub for this point, it creates an actual supply and demand of the ticket. Now the same thing go for scalping tickets, I rarely pay face value for tickets because I buy from scalpers. When the demand for the tickets is low, why would I go to a ticket office to buy a $35 dollar ticket when I could get a $15 dollar ticket from someone else? Its called smart shopping. On the flip side, I've attend 150 pro/college sporting events and have tried to buy from scalpers and when the demand is high the price of the scalpers will be high, no matter the event.
What's a shame is watching these bowl games on tv and there are only a couple thousand attending instead of giving away tickets to the schools. If the school is in the bowl game, they should automatically receive a share of tickets FREE of charge just by making it to the bowl game. Then the school should be able to sell them to fans at their leasure. I've never understood why a bowl would require the bowl team to buy tickets to the event. Going to a bowl shouldn't put a school back, it should help the program.
December 27th, 2011 at 4:35 PM ^
I've got two listed right now in section 614, row 10 (smack dab on the 50 yard line) for $180 each and so far no takers. I bought four but my travel partner bailed on me so if i dont move them via Stub Hub then i'll try and sell them down there.
How do you feel about Stub Hub anyways? I've heard good things about the site and you seem like a big fan......
s/
December 27th, 2011 at 5:09 PM ^
That section I saw on stub hub for $40 a ticket. I ended up getting lower bowl corner for under $50
December 27th, 2011 at 4:38 PM ^
UM is going to have to eat the cost of the tickets that it cannot sell which will hurt $$$. This happens every year and in every bowl.
Don't know why the schools cant work something out so that they don't get screwed by the secondary market evey year in the bowls. If a BCS bowl is going for $15 what do you think the Piece-of-crap Bowl is going for?
December 27th, 2011 at 5:32 PM ^
I'm in San Antonio to visit family and tickets to the Alamo Bowl were $70 on StubHub.
December 27th, 2011 at 7:40 PM ^
It's real easy, the schools should force the bowls to not release tickets to the public till the schools can sell them for a week.....and the schools should get them at a discount rate from the public price.....ie help the schools sell their allotment first, then release the rest.......that is the best way to help the schools under the current system.
December 27th, 2011 at 4:39 PM ^
so your bitching about low prices? the school can take of itself. My god the school fucking rapes you when you go to a conference game. Take your breaks when you can get them.
December 27th, 2011 at 4:43 PM ^
I agree. Some of the tickets are overpriced and/or illogically priced. I think the schools are getting screwed over, but I think people's anger should go towards other involved parties besides stubhub.
December 27th, 2011 at 4:49 PM ^
Don't worry about the UM athletic department. They basically print money. It's probably 1,000 to 2,000 tickets at most, a drop in the bucket for UM.
$125 is too high considering fans also have to shell out for airfare, hotel, food, etc. I know the school doesn't set the price, but if they did it wouldn't be any lower. That price is a steal compared to having to shell out $70 for Delaware State and UMass
December 27th, 2011 at 4:41 PM ^
Ahead of time from Stub Hub. (back in November). Before The Game. If we didn't make I could always sell the tickets to an SEC fan. (I live in GA). I got my tickets for $170 ea. and thought I was getting tickets before the price went up. Lesson learned.
December 27th, 2011 at 4:51 PM ^
this will probably be the LAST time I buy tkts thru the University..I could get much better seats at half the price RIGHT NOW on various ticket selling sites..and ON the Mich side of the field..why would I pay twice the price in the future?
December 27th, 2011 at 4:59 PM ^
I'm in the same boat. I've now bought a better pair for $65 (for both) after dropping $300 with Michigan to get crappy seats. I may even try to score some better seats at the last minute. Given the overall cost of the trip I'd like to end up with decent seats. I may have some nice leftovers to frame.
December 27th, 2011 at 5:03 PM ^
Next time you say to yourself ... "I'm not paying $125.00 a ticket, because I know I can get them for $20 a week before the game" It'll be a week before the game and tickets will be sold out through the University and will cost you $385 a seat on Stub Hub ... That's how it works.
December 27th, 2011 at 5:27 PM ^
Its all about demand, national championship game tickets are going for 1k, I don't think there is a ton of local interest for the game limiting demand to just the two fanbases. Even if both school bring 20k fans that still leaves over 20k tickets with not a lot of demand hence low prices. It has nothing to do with stubhub and has everything to do with a tuesday night game in a city where a $300 plane ticket is a steal.
December 27th, 2011 at 4:45 PM ^
This is more on the bowl for charging so much for tickets than on StubHub.
I'm sure a lot of us hate StubHub, but it allows people to offer market value tickets, and that's all based on supply and demand. Clearly, the supply is big enough where the face value of the tickets is too high. StubHub takes a commission from the buyer and seller. It does not set the prices. It does offer people an opportunity to see the prices set though.
December 27th, 2011 at 4:51 PM ^
Screw you and your capitalism.
/s
December 27th, 2011 at 4:52 PM ^
"I HATE SPENDING LESS FOR THE SAME THING!!!"
Maybe schools should better judge market value next time they sign a contract with the bowls.
December 27th, 2011 at 4:56 PM ^
If Michigan can't sell out its allotment of seats, the bowl system is in trouble. I often wonder what would happen if the major programs started telling the bowls that it is their responsibility to sell tickets and bear the loss if sales fall short of the mark - probably have a lot fewer bowls.
December 27th, 2011 at 4:57 PM ^
The problem isn't Stubhub, it's that schools are required to buy a massive amount of tickets at above market prices.
December 27th, 2011 at 5:15 PM ^
December 27th, 2011 at 5:21 PM ^
VaTech sold 10k of their 17.5k allottment. They got another 400 tickets sold via proxy to their fans who will donate them. And the ACC along with VaTech are donating another 5k or so to military personnel.
December 27th, 2011 at 4:57 PM ^
What screws the schools over is mandatory ticket purchases. It's illogical to direct your hate toward a site that gives you the opportunity to purchase a ticket for market price, particularly when that market price is way below the face value of the ticket. Do you also hate puts/calls because they encourage "speculation" and drive down/up the price of stocks?
December 27th, 2011 at 6:30 PM ^
December 27th, 2011 at 5:02 PM ^
good exposure for the schools ....but I agree with the consensus
December 27th, 2011 at 5:23 PM ^
I think this point gets overlooked, and I would upvote you if I could. The bowl system rips off schools and is generally run by crooked guys in bright colored blazers who are hauling in piles of cash unjustifiably. But when we think about building a new system, we shouldn't conclude that some financial loss by the school is necessarily a bad thing. The exposure is worth money (and recruiting hype, which leads to winning, which leads to happiness), so even if the school takes some financial hit, they may come out ahead.
I'm not saying that the massive financial shortfalls suffered by many schools is acceptable, or that the windfall should go to the Greater Phoenix Hotels Association (fictitious entity created to illustrate a point). But if we're tossing out proposals for modified bowl systems or playoffs, we should remember that straight revenue from ticket sales does not capture everything that the school gains from the bowl.
December 27th, 2011 at 5:03 PM ^
I wish Michigan would have told us where the seats are. I bought student tickets thinking I'd be down in the lower level for the game but got hit with seats int he 600s for $100. If I have known that, I would have waited to buy tickets for $15 on StubHub as they are currently listed. There's no way Michigan didn't know where the student section was beforehand and should have done us the service of telling us.
December 27th, 2011 at 5:07 PM ^
Not all students got stuck in the 600s. All the students I know got placed in the 100 level.
December 27th, 2011 at 5:03 PM ^
Keeping in mind that this is the same thing that happened last year for the gator bowl, and the year before that for whatever bowl there ever was. Stubhub has tickets. They sell priced for demand. Viola! Free market capitalists rejoice.
December 27th, 2011 at 5:14 PM ^
wow, only 86%? that surprises me, given its our first return to the bcs since the '07 rose bowl. oh well, i'm sure more will be sold, and the superdome will be big house jr.
December 27th, 2011 at 5:21 PM ^
What everyone is pretty much saying is that since you can get tickets on Stub hub for really cheap now, that noone is buying the tickets that Michigan still has to sell. Michigan is charging way more than what other seats are going for on Stub hub. If Michigan does sell it all of it's tickets, it will be late, close to game-day and only because all of the other tickets are gone.
December 27th, 2011 at 5:18 PM ^
"If I ever want a ticket from Stub Hub it always seems like they cost 5 times face value."
Are you being serious? I'm just curious because I use Stubhub quite often and the only time I've ever seen tickets for anything at 5x face value (or more) was last year's Stanley Cup Finals games in Vancouver. Everything else I've ever looked at on Stubhub has been well below that.
December 27th, 2011 at 5:38 PM ^
I think the 5x's was an exaggeration. But yes an under the lights ticket was above face value for a decent seat.
December 28th, 2011 at 4:59 AM ^
at the Necto downtown were selling on StubHub for over 10x face this year. I've actually never seen a ticket there for less than 2x face. I guess that's why I don't visit the site often.
December 28th, 2011 at 11:49 AM ^
to get tix to a sold out event, they're going to be selling for more than face. Now if you ever want tickets to pretty much any weeknight pro sporting event, go to StubHub and you will save big $$$.
December 27th, 2011 at 5:26 PM ^
the part I hate the most...I know it's supply/demand and the 'American way'...BUT It seems all too often, there is a small faction of buyers who hog all the big ticket items up, and then hold everyone hostage for absurd prices...it's bad 'enough' that it costs $85/ticket for endzone premium tickets at the Bighouse let alone getting smoked for them if you cannot secure season seats...I hate the seat license thing even though it has yet to affect my section..and I love my seats, but you cannot afford to go anywhere anymore. And Pioneer HS keeps jacking their rates, blah blah. I know inflation and stuff still costs more etc...but this type of thing with concerts and bowl games, etc is out of control. Greed is destroying our economy not building it.
December 27th, 2011 at 5:45 PM ^
Yes, if only we could pool our resources and distribute tickets to the people that deserved them most. We could appoint a panel of Michigan alums who would judge the most worthy ticket buyers. I too find it annoying that our greedy athletic department hogs all of the profits from games for itself to build world class facilities that will attract better athletes. Better that they should charge below market prices and keep the facilities at an acceptable level. Or better yet, they should take money from student tuitions rather than pass the cost of running a great football program onto the people watching the games.
In the hopes of not having this post categorized as flamebait let me offer the following serious response:
There's some truth to what you're saying. Bowl games are run by greedy guys who leverage the NCAA to create a situation where they profit unjustifiably. They're not adding a lot of value - they're just taking advantage of their positions to extract profit from schools.
But why are you critiquing Michigan for charging higher prices? The money to run a world class athletic department has to come from somewhere. It would be one thing if the department was using that money to line the pockets of its employees, but I don't think it does. I know you don't like it when ticket prics go up, but can you tell me what a better system would be?
Finally, you seem to be arguing that a ticket broker (or a few of them) can snatch up a bunch of tickets and just rake people over the coals, gouging them for outrageous prices. I think that the fact that tickets are currently $15 on StubHub should make you reconsider that theory. Yes, a ticket broker can grab up a bunch of tickets, speculating that prices will rise. And if he sells those tickets for the above market price, then he's making a lot of money and that's potentially annoying. But sometimes prices fall, and the broker is left holding the bag. I would hate to be a greedy ticket broker taking a $95/ticket loss right now.
December 27th, 2011 at 6:38 PM ^
It's clearly a convoluted system, designed to separate those from Northern climates from their money.
December 27th, 2011 at 10:48 PM ^
journalists with SNP publications here in enemy territory, this system gives preference for these prestigious bowls to those fanbases that can deliver butts in the seats:
"Despite being in the Sugar Bowl, there's nothing sweet at all about this matchup, as it pits the two least deserving teams in BCS history against each other.On one side, there's the Wolverines, a squad which beat absolutely nobody of note outside of the Out House, er I mean Big House. On the other, there's a Hokies bunch which was destroyed twice by the only team worth anything on their schedule (Clemson).
But since BCS officials can't see anything beyond the almighty dollar sign, putting two teams with rabid fan bases against each other just to sell tickets actually makes sense." - CHRIS MILES
This esteemed Mr. Miles goes on to predict a Blue victory, couched in additional insults. As if his pet team deserved to have all of *its* players in the Sugar Bowl last year?? No mighty dollar signs went into the decision to play the Tat5 in the game to get the now-vacated win over the SEC?? Or, that the rule that keeps the AQ's in the BCS games no matter how bad they are?? Take a look at the Orange Bowl this year, or almost any Big East entrant in recent years.
All this sloppy football tonight is making me crabby...
December 28th, 2011 at 8:48 AM ^
but you missed my point completely...I wasn't putting it on the University. I understand they have a cost, I benefitted from it as a student athlete myself, I think what has gotten ridiculous is how many 'prime events' such as bowl games, music concerts, etc...are bought up by brokers before anyone has a chance, and then the only option to purchase is through these agencies at 3-5x the already expensive premium...sure the fact that sugarbowl tix are $15 is a hit for these brokers...but use your head for a second...if these groups are taking a hit...they sure aren't doing so on a regular basis...what company in their right mind takes a hit like this on EVERY transaction? They don't...they are laughing their butts off with profits from every other event they are scalping people over...this is a minor setback to them...otherwise they would simply eat them or hold their ground. They've more than made their money back already. THAT is the part I hate....and much like your argument, I want to see the University benefit not the scalpers...and in the end their scalping practices are WHY we see Stub Hub et. al having to dump tickets they simply cannot move....and in the end the University gets screwed because they cannot afford to dump tickets, but the scalpers who have hands in many pots can..
I really like this blog but there sure are some pretty righteous pricks now and again...