Bistro Math*

(This is the kind of stuff that got Enron/Tyco/WorldCom et al. into trouble. Double counting revenue and thinking that everyone benefits. Maybe it's not as bad as that, but sure reeks of money grubbing greediness.)
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Red-hot tickets at Busch
By Derrick Goold
ST. LOUIS POST-DISPATCH
04/20/2006
The financial nature of the Prime Seat Club is such that the Cardinals essentially buy tickets from the season-ticket holder and sell them at gate value, a higher price than what the season-ticket holder paid. Unlike some other clubs, the Cardinals are restricted by state law and cannot sell tickets for above face value. For example, a third-base field box ticket that cost a season-ticket holder $38 (on average) for Friday's game will be resold on the Prime Seat Club for a premium-ticket price of $88. Fans who want to purchase from the Prime Seat Club must pay a one-time $35 membership fee and then a 20 percent fee on top of the ticket price for each ticket. The club splits both of those fees three ways with the program's operator, Tickets.com, and the Web site operator, Major League Baseball Advanced Media.Season-ticket holders are repaid the cost of their ticket or tickets.The Prime Seat Club acts as an alternate route for tickets, and a revenue stream.
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(And this...)
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TALK OF THE DAY
Is the new Busch Stadium too money-hungry?
By Kurt Greenbaum
04/19/2006 5:22 pm
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In a story on the site today, we learn more about how the Cardinals wring revenue from the stadium through the use of the Prime Seat Club. How’s it work? Roughly, it’s like this:

1. Season ticket holders can sell their seats back to the Cardinals for whatever discounted amount they paid for them.
2. The Cardinals can turn around and resell the ticket for a marked up “actual cost” of the seat. Example: One of my colleagues has season tickets that cost him $38 each. The Cardinals, however, say those are $78 tickets. That’s what Prime Seat Club members would pay.
3. Non-season ticket holders must pay an annual $35 fee in order to purchase tickets that are available in the Prime Seat Club.
4. Plus, they pay a processing fee every time they buy tickets.
   

Some have suggested that it sounds like the Cards are scalping their own tickets. On the other hand, the Cardinals are the toughest ticket in town right now. They’re darned near sold out — every game.

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(Admittedly this is a novel way of making more tickets available, but something seems fishy to me.)

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(Other $ related news.)

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TALK OF THE DAY Is the new Busch Stadium too money-hungry? By Kurt Greenbaum 04/19/2006 5:22 pm

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We’ve also heard quite a bit about the price of food ($6 beer, anyone?) and the high price of tickets (”Cards have third-highest ticket prices in baseball” — here).

*Bistro Math - A term coined by Douglas Adams referring to complex accounting practices.