SB50 Does Great Business, Nowhere Near Devastation of SB XLIX
While the SB50 resale was solid, it was not to the horrific capacities of Super Bowl XLIX in Arizona.
Consider a market correction in how the entire SB50 resale was played by resellers. Instead of having a massive spike shooting up both the wholesale and market median listing prices, SB50 had a steady hand in the marketplace. It was still considerably higher than Super Bowl XLVIII, Super Bowl XLVII or Super Bowl XLVI.
“While ticket prices decreased somewhat as the Super Bowl neared, prices stayed significantly higher than in the three years prior to Super Bowl XLIX, and didn’t see anywhere near the decrease that had been the norm prior to 2015. Last year was an abnormality in terms of ticket prices, and we saw that reflected in higher ticket prices far out from Super Bowl 50,” said Jay Mullarkey Vice President for Sales and Community Relations for TicketNetwork.
SB50 Stays Consistent
The average resale price (ARP) for a single gam ticket was higher than in years past, but significantly lower than the SB XLIX debacle. That’s a good thing, as it showcased growth potential, without having several brokers short their inventory to buying secondary consumers. Notice the spike in ARP from XLIX to SB50, especially 3 Days from the event. Over a $7,000 differential. Yet, SB50 was still a higher value than the previous XVIII, XVII, & XVI resales, showing growth without gouging.
Usually, when something financial stays consistent, in business, that is an issue because it means that the revenue isn’t growing. However, Super Bowl XLIX is now proving to be a larger outlier. Something where it was so drastically off historical measurements, that a return to normalcy was probably welcomed by both resellers and secondary market buyers. This doesn’t mean that SB50 wasn’t successful in its overall average resale pricing.
Notice the spike at three days out for the average resale price for two tickets. Super Bowl XLIX was way off of the charts, more than double any other of past three Super Bowls (XLVIII, XLVII, XLVI). And SB50 was still above those three Super Bowls, but well below the resale demand pricing of SB XLIX. It frankly shows how drastic and different SB XLIX was to any other market condition in years past.
“The average ticket price of almost $8,000 the day of the event was almost twice as much as the average in 2014 and is among the most expensive events in the history of the secondary market,” said Mullarkey.
One of the biggest misconceptions is where resale tickets are purchased from. Notice that Colorado (18%) and the Carolinas (18%) do not out-weigh the purchasing state/regional power of California (26%). Factor this into not only travel demands, but the ability to purchase resold tickets in this marketplace.
Comparison Data From Super Bowls Past
This is where the trends could be seen. Notice how the SB50 started out almost double of the last three Super Bowls (XLIX, XLVII, XLVII) but didn’t have huge demand spikes throughout the entire lead-up to the actual game. SB50 only lost a small significance of its value leading up to 3 Days out, whereas XLIX had the balloon spike of doubling its average resale price, obliterating XLVIII & XLVII numbers especially by comparison, almost 7-times what the tickets had gone for previously during this periods. The APR for XLIX had the equivalent of a Depression-era run on a bank, where an avalanche occurred the most demand put pressure on the remaining inventory.
“Despite the negative attention following last year’s Super Bowl ticketing difficulties, the public was comfortable buying on the secondary market, as sales on TicketNetwork.com was up 18% compared to last year,” said Mullarkey.
SB50 resold tickets held a higher value than any of the other previous Super Bowls minus SB XLIX, and was even significantly above the norm for each single game ticket bought:
Here’s the ARP for two-out-the-door Super Bowl tickets on the secondary:
And while consistency is impressive, the SB50 average resale price actually held onto the majority of its value. Notice that SB XLIX started out at a smaller average resale price, then started to cross a point of no return 9 days out, before peaking at $22,919 for two out the door 2 days out from the SB XLIX. By comparison, SB50 actually dropped at 4 days out, then made a small uptick in the same category toward the day of the event.
Overall sales volume was near identical from last year, just the pricing was different in the resale market overall, said Patrick Ryan, co-founder of eventellect. SB50 had 6,800 SVG transacted, while Super Bowl XLIX had 7,000. Super Bowl XLVIII: 6,600. Before that, the record was Super Bowl XLVII, which had 5,600 SVG traded during that period.
“The market this year transacted in a high yet stable way, meaning the “get in price” didn’t move much between $2500 and $3500. Last year the “get in” ranged from $1500 to $8000. Average prices were the same but the ranges were significantly different,” Ryan said.
Let’s exclude SB XLIX and look at the four “normal” Super Bowl resale markets of SB50, SB XLVIII, SBLVII, & SBXLVI for two-out-the-door tickets:
Two Graphs To Sum Up SB50 Resale
SB50 did have a bit more action on the resale market over the last five years when you exclude SB XLIX. At no point was SB50 below the APR in compared to SB XLVIII, SBVIII, or SBVII, and was in fact, nearly $1,000 higher in all days, and for the majority of the time, consistently above $2,500 in APR compared to those three Super Bowls throughout the entire 14 days leading up to the actual event.
Notice how much disparity was in the market place, especially the last two Super Bowls. The difference maker is that the amount of short sale horror stories didn’t crop up during SB 50, as they had with SB XLIX. So, in essence, SB XLIX was a run on the banks, truly an outlier of what trends have been seen from Super Bowls past, and SB50 was a welcome return, with a growing resale market. But with 6,800 SVG means that there is a lot of potential out there, should the tickets become available for sale in the first place.
This is one of the more interesting SB 50 charts, as it shows the marketable demand for Super Bowl tickets and in which period are they at their highest point. Notice how the ticket median listing price actually dropped after the regular season. That indicates that there are a lot of fans who think their team has a chance, therefore the demand is higher. Once it evens out during the playoffs, including the two weeks prior to the Super Bowl, the demand curve actually changes until right before the event.
This was what happened with SB XLIX, but not in the same category. SB XLIX had the added value of cheap flights, in-expensive hotel rooms, a massive amount of short-selling, a lack of inventory and a paperless system that didn’t do anyone any favors. It created such a vortex, that it is likely that for the next few years, resellers will be more cautious as they list inventory during Super Bowl week. While the returns for SB50 were great, and above other measurements, it is also likely that some resellers were gun-shy, given seen several of their colleagues bankrupt and embroiled in lawsuits by various states, because of SB XLIX and its extended amount of issues.