Question
(class is sports economics) Before they left San Diego for Los Angeles, the NFL Chargers had an interesting stadium deal with the City of San
(class is sports economics)
Before they left San Diego for Los Angeles, the NFL Chargers had an interesting stadium deal with the City of San Diego.The Chargers agreed to pay 10 percent of its ticket sales revenue to the city as a stadium lease payment.At the same time, the city agreed to pay the Chargers face value for all unsold tickets.It is also an NFL rule that net ticket revenue (after taxes, fees, etc. are subtracted) are split 60-40 with the home team getting 60% and the visiting team getting 40%.
(a)Suppose the price of a ticket is $100.How much did the Chargers get if that ticket is sold?
(b)Again, suppose the price of a ticket is $100.How much did the Chargers get if that ticket goes unsold?
(c)What seemingly odd incentives does this deal set up?How much do concessions and parking spending per ticket need to be to offset those incentives?
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