NFL  > New York Jets  > Personal Seat Licence-Jets-PSL
December 9, 2008, 12:54 PM
WHAT JETS EXECUTIVES DON'T WANT YOU TO HEAR:

Well, the sale was a total and complete failure for the Jets. Supposedly, they needed to stop the auction after just 620 PSLs were sold because prices were headed quickly toward the minimum $5,000 per seat. The 620 seats represent only 31% of the tickets the Jets intended to sell and all 2000 are supposed to be the "best experience money can buy."

When you take out the likely bogus initial bids ($200,000 each for the first 2 PSls-this was more than likely a business friend of the Johnsons setting an artificially high floor to help Woody out) and the few other high bids for 45 yard line seats in the first row, most of the 620 PSLs probably only sold for something in the range of $15,000-$17,500.

Phil Mushnick said it perfectly: ???Then there's NFL commissioner Roger Goodell's claim that PSLs are "good investments." How so? They're not open-ended; one doesn't own a PSL for perpetuity. They last only as long as the new stadium does "in its current configuration," therefore the PSLs are leased, not owned. As those versed in real estate will tell you, ultimately the value of leased property increases only for the owner of the property, not for the party paying the lease. One can't sell their PSL at a profit as its expiration grows nearer. And over the life of your PSL, the team can just keep raising ticket prices, nothing you can do about it - unless you can find a bigger sucker than yourself. Heck, if PSLs are good investments, NFL owners would be eager to buy them from one another, not to sell them to you.???

All fans need to do is relax and hold out and all prices for the entire stadium will drop dramatically. When the Jets apparently sold only 31% of the seats they intended to sell, and the last ones were supposedly going for under $13,000 per seat, all you have to do is wait.

Prior to opening the next round of bidding, I expect the Jets to try to scare people into buying the other PSLs not going to open auction. If they get us to bite the second time around and buy the PSls at their current listed prices, they can tell people considering making the purchase that those who bought PSLs on day one have already seen their PSLs go up in value. The reality is that the opposite has occurred.

Look at it this way. If, on the open and unmanipulated market, the Jets might only receive $5,000-$10,000 on average for a PSL for Coaches Club seats beyond the first few rows, why would I want to pay $25,000 for a PSL in the Great Hall Club on the visitors??? side of the stadium? You have to be a sucker to pay $25,000 for a seat that would have gone either for $5,000 or been left unsold altogether. What this really means is that prices have actually declined dramatically since the auction opened.

The auction has already told us this; the value of Coaches Club PSLs beyond the first few rows is likely somewhere between $0-$5,000. That???s it.

Sure, the prices for game day tickets are less expensive in other parts of the stadium, but those seats also come with far fewer amenities.

Just in case you do decide to buy a PSL, please check with your accountant to see if you can mark your PSL to market and take a tax deduction since it will likely be worth far less than what you paid for it, the second after you buy it.

Remember the Raiders??? attempt at PSLs? Prices dropped so quickly that they reportedly needed to abandon the entire PSL process midstream. In the end, all of those people who bought the first PSLs were out of luck and were simply stuck with worthless pieces of paper.

More importantly, PSls at these prices simply represent a bad investment and a bad business decision.

Don???t believe the hype. The longer we all wait the cheaper PSLs get.

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