Saw thisnews article with the accompanying picture that displays what appears to be a cramped room near the end-zone.
For the privilege of squinting at the game from that room, it’s $500,000 per year with a total commitment of 10 million dollars over 20 years. Oh, and if you miss too many payments, the team will sue you for every penny of the remaining 10 million dollar balance up front plus penalties.
What else comes with it? Free food? Drink? A clean bathroom possibly shared with other suite owners? Do you have to use the public stadium hallways crowded with people or is there a separate entrance to avoid rubbing elbows with the proletariat?
Will you be able to openly snort a little cocaine or get some high end strippers to pay a visit without being hassled?
And why would anyone pay such high prices? It looks like you’d have to watch the game on tv screens presumably in the suite anyway, so why not stay in a high end hotel anyway? (where everything I mentioned above is available although the food/drink isn’t free)
The consumers who opt for it apparently feel they get some value for their money.
Why does anything else matter?
I might think musical theater is a waste of time. That doesn’t mean I have a point if I decried people spending their own hard earned money on tickets.
That I think there’s a better use for that money is immaterial. It’s their money, it doesn’t cost me anything if they use it, and they feel they get value for their investment.
Wow 500k a year? We rented a room bigger (maybe 2x as large - plus it opened to the outside where we could sit down and watch too) than that at a Padres game. I can’t remember how much it cost - and I didn’t pay for it, but I remember thinking it was pretty reasonable. Of course there are many more baseball games than football (I think - I don’t know much about sports).
My guess is that it buys you bragging rights. The millionaire wants to be able to invite business contacts to watch a match from their very own private room. I bet that extras like food, drink or naked ladies cost extra.
If you own a business, this gives you the comfort of knowing that - during the sports season at least - people will return your phone calls. If you can just get close enough to shake the hand of that potential customer at a party, you are nearly certain to get a four-hour sales opportunity by inviting them to a game. It’s a great way to build real relationships.
So if your business depends upon a few large customers (wholesale), rather than thousands of small ones (retail), then this is your best marketing investment.
I bet they get VIP parking. I’ve heard that there are people in eastern cities like Boston who pay more for a place to sleep for their car, than for themselves.
“Benefit” is incredibly subjective. There’s no universally agreed upon standard there at all.
It gets you access to the suite.
And they’re usually leased by companies and very wealthy people (who often own their own companies). Those suites can seat multiple people, and you have access through a whole season.
If you amortize over 8 home games (plus 2 preseason) and the full complement of 20 people per suite, that’s less than $5k a game per person. That’s still more than regular tickets but not nearly as scary as a big number like $500k.
For that, you have a fairly nice suite with personal space, private bathroom, a kitchen/bar area (you need to purchase or supply your own food/drink), HDTVs for coverage of other games and sports, access to stadium catering, close-in parking, access to exclusive stadium areas (clubs and such) and a few other perks.
Is that worth the cost? Yes, to some people. No, to others.
Businesses like it because potential clients or business partners like the VIP treatment. Rich/famous people generally need/like the privacy. And regular people generally don’t get those tickets for strictly personal use.
Even if this is the case, strictly speaking, the business still foots the bill. It would be a tax deduction, rather than a strict write-off. And it would still cost quite more than the tax savings. The perceived benefit of the business transactions would outweigh the cost.
Our company does suites at NBA games but not NFL. Too expensive for a relatively small outfit like ours.
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It also probably gets you access to the other events run at the stadium like concerts and events in other sports.
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I’ve always wondered this, can anyone confirm that you have access to concerts and other events if you have season tickets? What if, say, an NHL and an NBA team, or an NFL and MBA team, share a stadium, do you get access to your box for both teams or are they separate? And if they’re separate, how do they decide who gets to use it for non sports events?
I don’t know about the boxes specifically, but my dad has season tickets for the Falcons (poor dad!), and he gets first dibs on his seat for any event that occurs in the Georgia Dome (I think he has used this once, to see the SEC championship one year). But he has to pay list price for that seat.