Yankees, Mets Won't Sell Seat Licenses

[Lil Bit Special]

http://www.bloomberg.com/apps/news?pid=20601079&sid=afsBin7aRTDA&refer=home

By Danielle Sessa

May 11 (Bloomberg) -- New York's two Major League Baseball teams won't sell licenses to fans who want to buy season tickets at their new ballparks because they have already secured financing and don't want the fan backlash.

Yankees President Randy Levine and Mets Chief Operating Officer Jeff Wilpon said in separate interviews that their clubs won't join at least 17 other major U.S. sports franchises in selling personal seat licenses when their new baseball stadiums open in 2009. The licenses require fans to pay a one-time fee for the right to buy season tickets.

``We had a visceral feeling it would not be well received by our fan base, which was confirmed by our market research,'' said David Howard, the Mets' executive vice president of business operations.

The St. Louis Cardinals' Busch Stadium, the San Francisco Giants' AT&T Park and Wembley Stadium in London are venues that have recently been built partly with money from seat-license sales.

The Cardinals and Giants, like the Yankees and the Mets, are among the major-league teams that built their stadiums without public grant money. The two New York teams raised a combined $1.6 billion in taxable and tax-free municipal bonds that will be repaid with stadium revenue.

``They didn't sell PSLs principally because they didn't have to,'' said Rob Tilliss of Inner Circle Sports LLC, who oversaw a loan to the Giants to help build their stadium. ``They were able to raise enough financing to build their ballparks.'' Levine declined to discuss why the Yankees don't plan on selling seat licenses.

$40 Million

The Yankees and Mets might be passing up at least $40 million each in revenue by not selling licenses, said Max Muhleman of Private Sports Consulting Inc., who developed the program for 15 other pro sports teams. Both clubs would have been able to charge more than the baseball average of $3,000 to season-ticket holders, he said.

``New York would be one of the safest and most enthusiastic seat-license markets in the whole country,'' said Muhleman, 70. ``The New York market is a very high-passion sports market and tickets are regarded as a very valuable commodity.''

So far, none of the nine major professional sports team in the New York market have sold seat licenses. The National Football League's Giants and Jets, who are building a $1.4 billion stadium in East Rutherford, New Jersey, to open in 2010, haven't decided whether to sell them.

The National Basketball Association's New Jersey Nets haven't determined if they will sell personal-seat licenses at their new arena in Brooklyn, New York, spokesman Barry Baum said. The team plans to move in for the 2009-2010 season. The New Jersey Devils of the National Hockey League decided against them for their new arena in Newark.

Creation

Muhleman helped the NFL's Carolina Panthers become the first major pro sports team to sell seat licenses in 1993. Now, at least 10 NFL teams have sold seat licenses, Muhleman said.

The Yankees' new $1.2 billion stadium and the Mets' $800 million project are being built next to the teams' current venues. While neither is getting public money for the stadium, the city and state are contributing about $400 million for infrastructure improvements, new parks and parking garages.

The Yankees play in 84-year-old Yankee Stadium in the Bronx, while Shea Stadium in Queens has been home to the Mets since 1964. The Mets sold the naming rights to the new ballpark to Citigroup Inc. for a record $20 million a season. The Yankees have said they will sell ``affiliation rights'' -- such as Yankee Stadium at ``X'' Plaza.

Other Clubs

The Cardinals, whose 43,975-seat Busch Stadium opened last year, raised about $40 million by selling 10,300 seat licenses, said Mark Murray, director of season and premium ticket sales. The owner holds the right to purchase tickets for that seat for the life of the ballpark.

``The definite motivator for us was we didn't get public funding,'' Murray said.

The Giants helped finance their 41,777-seat ballpark by selling lifetime rights to the 15,000 best seats at what was first known as Pacific Bell Park, which opened in 2000.

The team raised $50 million to $60 million through the personal-seat license sales, said spokeswoman Staci Slaughter. The ballpark was the first privately financed major-league facility since Dodger Stadium in 1962.

The Houston Astros and San Diego Padres also sold seat licenses to help pay for their new ballparks.

Is there hope for us football fans that we too wont be subjected to PSL's???

[nj meadowlands]

Why can't the Jets and Giants follow suit?

[wildthing2022000]

Without seat licenses how will the Yankees afford their soon to be $500 million payroll?

[Kidhuman]

They will have enough money after selling 30 dollar beers.

[124]

Without seat licenses how will the Yankees afford their soon to be $500 million payroll?

Yeah, because the Yankees have spent tons of money this offseason.

Newsflash:

If your franchise had the money or your owner wasn't too cheap, you'd spend around $200 million as well.

[Arsis]

George isn't nearly the richest owner is baseball; the yankees aren't the most profitable team(if they are it isn't by that much) other teams need to stop being cheap and spend money.

[Thai Jet]

Great news for all fans !!!