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February 8, 2012

14,500 Can Work

EVAN WEINER of the NEWJERSYNEWSROOM.COM wrote a must read article explaining how a 14,500 seat arena could work in the Islanders and ownership favor.  Below are just a few pieces from the article.
a professor at the University of Central Florida and sports economics consultant, coined the phrase the "Fenway Principle," to describe how a ballpark or arena with reduced capacity can create a shortage of tickets, forcing customers to purchase tickets months in advance if they want to attend a game. Sutton based his theory on Fenway Park, the home stadium of Major League Baseball's Boston Red Sox.

Fenway Park has one of the smallest seating capacities in Major League Baseball which makes getting a ticket to a Red Sox game difficult if a purchaser doesn't buy a ticket plan prior to a given season.
Red Sox tickets become subject to the law of supply and demand. If you want a ticket you better buy them in advance and be willing to pay up front a pretty good price because of scarcity. Of course tickets are available on the secondary market but a team wants to sell all tickets in advance and not deal with a walk up crowd.
Depending on how a deal is structured, Wang might be better off with a smaller ticket inventory than what he presently has at the Nassau Coliseum. The Fenway Principle could play out in Brooklyn, where Islanders fans will not only vie for fewer seats, but will pay more for them

The on-field, on-ice product drives ticket sales. Wang's Islanders have been terrible and need to get better.
If the team does improve, there figures to be more interest and a small seating capacity might cause businesses and corporate interests to have a sense of urgency to buy the Islanders product up front in Brooklyn and improve Wang's bottom line.

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