[DazzlinDino]

Originally Posted by GullFoss

Its the micro-economics of events. Scarcity helps drives demand for season tickets, which ensures higher revenues because STH's offload a lot risk for the organization and take both good games and bad games. Its a weird phenomenon on the surface, but its true. The corollary is thatwhen a team is no longer selling out games, a vicious cycle of declining attendance and season ticket holders can take hold - and its hard to stop it.

If the stadium is near full or better (a waiting list, or hot house for example), a person with season tickets is less likely to get rid of season tickets for multiple reasons. First, he can get a fair price if he needs to resell tickets. Second, if he gives up his rights, he might not be able to get back in line when he wants to or get as good of seats.

In contrast, if the Stadium is not full...there is a huge incentive to just cherry pick the best games, only support teams during successful seasons, and buy single game tickets at the walk-up window.


Walk up buyers
Too cold outside? Walk-up buyers stay at home, and attendance suffers
Phoenix in town? Walk-up buyers stay at home, and attendance suffers
Team off to poor start? Walk-up buyers stay at home, and attendance suffers
Team out of the playoffs? Walk-up buyers stay at home, and attendance suffers

Season ticket holders
Too cold outside? Tickets are a sunk cost; Senators get paid either way
Phoenix in town? Tickets are a sunk cost; Senators get paid either way
Team off to poor start? Tickets are a sunk cost; Senators get paid either way
Team out of the playoffs? Tickets are a sunk cost; Senators get paid either way

So yes...decreasing available season tickets increases the demand for season tickets. If the flames only had 5000 seats in the dome, there would be a lot more people who would want season tickets...

Not to mention, if there are 1500 empty seats it's harder to raise prices. By having a stronger demand for available seating they have leverage for raising them.