Morton J. Marcus is an economist formerly with the Kelley School of Business at Indiana University. His column appears in Indiana newspapers.
What’s to enjoy at the Indianapolis 500? After the cars roar once around the oval track, there is nothing of interest, unless you yearn for disaster, destruction, and death.
You cannot see the race. The track is so large that being at the race is similar to going to a baseball game and being able to see only second base. The cars move so rapidly they are only a blur of color. Many “fans” are sentimentalists tearing up at the singing of “My happy hovel on the Wabash”. Few know anything about the racing vehicles, but they all know about the drivers.
Yes, the drivers are the stars of the 500. What started as a competition of vehicle owners seeking to demonstrate technological superiority is now a cornball progression of personalities.
Each year, tales are told of $150 tickets obtained for $35. Recently, I’ve seen tickets offered on line ranging from $27 to $9,560 each.
Scalping tickets is as old as several other street professions. It is legal in most states, as long as the tickets are not counterfeit, because the tickets, once sold by the venue, are the property of the buyer. The buyer may transfer them, with or without charge, to another person.
How much that other person would pay for the ticket depends on many factors: the date and time of the event, the participants (try to see a Cubs’ game this year), the location of the seats, and the price asked by the seller for the tickets.
The open market (scalper) price often starts out higher than the face value in anticipation of strong demand. This irritates the initial seller who has already sold that ticket. Thus, many sports organizations make tickets non-refundable after a short period of time (three days at the Speedway). If you want to recoup your money, try a friend, use E-Bay, Craig’s List, or some other one-on-one exchange.
Brokers stock up on what they hope will be popular tickets. Today, sports teams and theaters make deals with brokers who share revenue above the face value with the original sellers.
If the anticipated demand does not materialize, the price can fall to desperation levels as the sellers try to recoup what they invested in the tickets. This may happen very suddenly at the singing of the ritualistic, nostalgic song.
Buyers who don’t care where they sit, may wait until late in the process. The thrill of bargaining may govern their actions despite the risk of not being able to buy a desirable seat. Buying earlier at face price eliminates such a risk and insures against paying a premium at a later date.
An internet ticket site asks, “Who will earn the right to kiss the yard of bricks and drink the milk in the winner’s circle this year?” Do we care? I don’t.