FanNation - The Republic of Sport

Basketball fans who are struggling to make ends meet and need an excuse to cut certain entertainment expenses can thank the Los Angeles Lakers for making his or her decision a little easier today.

The Lakers unveiled a new ticket premium this morning for certain home games against top-flight competitors during the 2008-09 season, including teams such as Boston, Cleveland and Dallas.

Under the new plan, a premium fee up to $55 would be added to the face value of the ticket for fans attending one of eight home games this upcoming season.

Specifically, the mark-up will start at $10 on a $35 seat ($45 total), and max out at $55 for a $260 ($315 total). Put in another way, look at it as a 28 percent tax on a $35 seat, or a 21 percent tax on a $260 seat.

The affected home games are: Boston Celtics (Dec. 25); San Antonio Spurs (Jan. 25); New Orleans Hornets (Feb. 20); Phoenix Suns (Feb. 26); Dallas Mavericks (March 15); and Houston Rockets (April 3). 

Before fans get all up in arms about this, let me offer a different perspective on this issue.

First of all, this practice is somewhat commonplace in sports such as baseball and football. We have seen teams levy premiums when teams such as the New York Yankees come to town.

So, while the Lakers may be setting a new trend in the NBA, they aren't the first sports franchise to institute this practice. (Though, I wonder if other NBA teams have tried this in the past?)

Second, although the business of sport is unique, the basic principles of supply and demand are still applicable. I know this announcement comes on the heels of a disastrous week in the stock market. However, there are enough people in Los Angeles who have the means to pay for these games, are willing to pay the increased fees, and will still attend the game despite the premium.

Even with this premium, we'll still see the attendance listed as 18,997, a sellout for Laker home games. Even if we see at 10 percent drop in attendance, enough people will still purchase tickets with the increased fee to absorb the small loss. It's simple math and economics. The demand is there to meet the supply.

Yet, here is a third perspective. Odds are, the "average" fan who won't be able to afford this increased prices will probably end up watching one (or all) of these eight games at home, a friend's home, or a sports bar. They will eat, drink, talk to friends and family, and enjoy the commentary.

As these "average" fans "choose" to watch the game on the small screen instead of in the arena, television companies, sports bars and grocery/liquor stores will profit.

I know, it's a wierd concotion of trickle-down economics. But hear me out.

The eight games are probably the eight biggest regular season home games of the season. Many Laker fans, despite some resentment that Staples Center is now harder to get in to, will still find some way to watch the game. A few may watch it in the course of their normal lives, while others will have people gather at their homes.

Either way, a lot of eyes will be watching these games. That means Fox Sports or ABC/ESPN will have respectable ratings, which translates into advertising dollars. This will ge the case for just about anyone watching the game, even the Joe Schmoe who watches one of the games from his workplace.

Now, some people will congregate at a local sports bar or watering hole to watch the game. These groups will probably range in size from 2 to 10 people. They will stake out a table, order some nachos, and drink some beer. Right there, your local establishment cashed in on a big Laker home game.

For those who would rather watch the game in the comfort of their own homes, some may invite a few friends over. A good host will likely provide more than just a television to watch the game. He or she will have snacks, drinks, maybe even a full lunch or dinner. Of course, this may involve trips to the local grocery or liquor store. Heck, some of their friends may make a liquor store run before they even arrive to the Laker viewing party.

Point is, while many will complain that adding a premium makes Laker home games less accessible to the "average" fan, those same people will find alternatives to watch the game. That's just the way sports work.

In all of our three major sports, many teams have more fans than their respective home stadiums can accommodate. The Lakers, for example, have millions of fans, yet only 19,000 privileged people have the right to be in the stadium on any given night. Naturally, a large portion of the masses will be left out.

This is doubly true when you have another popular team come to town. If given the opportunity, what basketball fan would not want to be in attendance to see LeBron James match up against Kobe Bryant? There needs to be some barrier to entry. That's why we have a ticketing system in the first place.

And when we have a ticketing system, combined with a team that is as popular as the Lakers, invariably there will always be someone who is willing to pay a little bit more just so they can be one of those 19,000 privileged people.

Why should the Lakers be blamed for that? In the end, sporting teams will always charge what the market will bear. That, my friends, is the business of sports.