The Ticketing Issue

Several years ago the NFL decided that - rather than allowing scalpers to charge enormous markups for their tickets - they'd like to get into the secondary market of ticket selling (in addition to the primary market, where the teams sell tickets directly to fans) themselves. By doing this, in addition to directly securing these additional profits, the NFL also gained access to important information on consumer demand (e.g. the relative demand for tickets based on seat location, team opposition, weather, etc...). They initiated this action via a website called NFL Ticket Exchange, which is operated by TicketMaster.

Nevertheless, I believe two issues still remain. Firstly, there is a glaring lack of contact between buyers and sellers in this market - as all transactions are mediated by Ticketmaster. Although this ensures there aren't really any trust issues (since Ticketmaster guarantees the authenticity of the tickets), I do think the market would be aided by allowing buyers to somehow contact or gain information about sellers. Buyers can learn how well they can see the action from where the seats are located, the types of fans that are usually situated around them, high-quality eateries that may be located nearby, etc... Secondly, many fans complain about the fact that this system encourages easy access to tickets from anyone who wants them and this disrupts the dynamic of the stadium (as many fans from the visiting teams can easily purchase tickets through secondary markets - this had previously been a lot harder to do when fans bought tickets from their own teams, as priority was assigned to to those who had a more extensive buying history). It's much more fun to go to a game when most of the fans belong to the home crowd - rather than dealing with "fair-weather" fans or those from the opposing team.

Therefore, I believe the NFL Ticket Exchange is only part of the solution, the next step is to adopt an approach similar to what is being offered by Twck.it, a social “music-ticketing” network.  Through this site, fans selling tickets can post their listings to Twck.it for free (no registration required). These sellers must then use their existing Facebook or Twitter accounts to enter the ticket information, and their listing will appear through the Twck.it network (and their price/seat information will be compiled for purchasers to easily navigate). In this way, buyers have some medium in which they can converse with sellers and gain more information about the tickets they’re buying. Furthermore, in response to fans complaining that secondary markets allow into stadiums a certain type of fan that detracts from the game experience, this initiative will encourage more group unity among fans attending the game (since they will probably restrict purchases to those with like-minded interests). Lastly, Twck.it offers a free ticket marketing service to sellers, including detailed reports with extensive “activity summaries” for each of their listings (which is similar to what Ticketmaster offers – but here, in addition to being able to assess buyer tendencies, you can track buyer profiles through their publicly-provided information. 

Ultimately, this really can be something potentially beneficial for both the league and its fans. Again, I’m cautiously hopeful that real change will be enacted.

References

Kastelein R. Twck.it Launches first Social Ticketing Technology for Concerts. EU Ticket News. Oct 17, 2010. Retrieved from http://www.euticketnews.com/20101017939/twckitr-launches-first-social-ticketing-technology-for-concerts.html

Press Release. NFL Ticket Exchange by Ticketmaster Kicks off 2010 Season as the Official League-Approved Ticket Marketplace. PR Newswire. Aug 9, 2010. Retrieved from http://www.prnewswire.com/news-releases/nfl-ticket-exchange-by-ticketmaster-kicks-off-2010-season-as-the-official-league-approved-ticket-marketplace-100274019.html

Fennelly J. How Technology has Changed the NFL Experience. Bleacher Report. Sep 10, 2009. Retrieved from http://bleacherreport.com/articles/251693-how-technology-has-changed-the-nfl-experience

Gregory H. NFL Looking to Profit from Secondary Ticket Market. Fox DC. Aug 20, 2010. Retrieved from http://www.myfoxdc.com/dpp/money/nfl-looking-to-profit-from-secondary-ticket-market-082010

The Blackout Issue

The NFL currently has a blackout policy in place where they prohibit the airing of games on local stations (anywhere within a 75-mile radius) if the city hosting the game has failed to sell out the stadium at least 72 hours prior to the initiation of the game. This policy has been in place for decades. The basic rationale for implementing a blackout seems financially sound - that consumers of football will be compelled to attend the game (and pay inordinately high prices for tickets) if they are unable to watch it from the comfort of their living room. In 2009, a record-high number of games were blacked out (8.6% in total). I'd like to argue that this approach is antiquated and in dire need of a re-assessment.

With the advent of high-definition television and the wide variety of alternative devices - that cater to viewing sports (smartphone, laptop, Slingbox, etc...) - at our disposal, sports in general is moving away from being something that necessarily needs to be seen in person. In fact, one can easily make the case that it's preferable to watch the game from home rather than attend the match itself. Just last week, I attended the Minnesota Vikings - NY Jets game at the Meadowlands in New York and, despite being a lifelong football fan, found the experience to be mostly lousy. The parking situation was atrocious (it took an hour to get to our spot and an hour to get back on the highway once the game finished), the weather was terrible (thunderstorms), the food was unspectacular and highly priced and the fans were raucous. I paid 150$ (per ticket) in order to endure that - rather than sit at home and watch the game on my sofa for free. I mention this simply to say that I do think more fans are going to soon realize, with such high-quality viewing, that it simply doesn't make sense to attend games. The NFL and the TV networks must know this as they signed deals worth over 20 Billion$ for the league's viewing rights. Additionally, the league's attendance figures have shown consistent decline over the past several years. Along these lines, the NFL needs to reassess what's most important - their TV revenues or attendance revenues. As I'm suggesting above, I think it's undoubtedly their TV revenues that should occupy primary importance - for that reason, they should care less about not being able to sell out games and more about ensuring as many people are watching their games as possible.

Additionally, in today's difficult economy, the NFL needs to be more sympathetic towards fans that are unable to afford tickets. The average ticket price rose nearly 5% in the past year to 76.47$ and fans that can't pay that price shouldn't be punished (by being unable to see the games). It may have been the case only 10-15 years ago that those fans would be simply unable to watch the game. Today, however, you likely force many of them to pursue alternate avenues for watching the game that the NFL will be unable to extract any money from - via the internet (through websites like Justin.tv) or illegal satellite. So, not only are they creating a disgruntled fan base - but they are also forcing that fan base to pursue questionable means (for watching the game) that may potentially ultimately backfire against the league.

I think the system needs to be re-evaluated. I can only hope the Commissioner's Office feels the same way and ultimately takes the necessary action to rescind this blackout policy.

References

Horrow R. "Technology: The NFL's Friend or Foe?." Businessweek Magazine. Sep 16, 2010. Retrieved online from http://www.businessweek.com/technology/content/sep2010/tc20100916_068999_page_3.htm

Riley C. "NFL Ticket Prices Climb Again." CNN/Money. Sep 28, 2010. Retrieved online from http://money.cnn.com/2010/09/24/news/economy/NFL_ticket_prices/index.htmver