11-08-2013, 10:32 PM
Quote:#1. Reducing supply does not increase demand.
#2 Reducing the price of a season ticket does. On top of that,
#3 the London game is essentially guaranteed income for the Jaguars,
#4 it's money flowing into the Jacksonville economy without the local populace having to lift a single finger.
You are correct in regards to #1.
You are incorrect in regards to #2. Season ticket prices did not decrease. The fact that STHs lost ONE (1) regular season home game does not offset the decrease in the price. You forgot to recognize the fair market value of a season ticket that has ONE (1) less regular season home game. In essence, the Fair Market Value (FMV) of a Jacksonville STH has dropped. This creates an inverse reconciliation between what the seller provides versus what the buyer receives. Thus its an actual increase in ticket prices that will result in less demand by the consumer---- In other words, as a consumer in Jackonsville, why would I pay more for season tickets, at face value, when 1 of those home games will not be able to be attended? The demand curve thus slides to the left... Quantity is reduced and price is increased....
#3, as a consumer, I don't care what it means to Khan as the owner of the Jaguars. I'm a Jacksonville Jaguars fan. He's the owner. He's doing just fine without trying to figure out how to increase revenue outside the traditional methods. To me, it seems we praise business men like gods. Please spare me. Anyone with a billion dollars isn't going to get my respect by jacking regular consumers.
#4 is completely incorrect. Basic micro economics proves that revenue spent outside Jacksonville does not create any additional revenue for the populace of Jacksonville. All the revenue from Jacksonville that could have happened by concessions, parking, scalping, supermaket sales for tailgating, ETC is LOST by having the game outside Jacksonville. You're completely losing the micro economic cascade of having the game in Jacksonville. To think otherwise is naive.
Sure Khan gets benefit. But to think it helps Jacksonville consumers, citizens, fans, and STH's is completely inaccurate.