UM selling options for football tickets

[Southpaw]

It's all about the $$$$$.

UM selling options for football tickets
Hurricanes are first college program to partner with OptionIt


The University of Miami is the first college program to try a ticket-sales method that allows fans to reserve the right to buy tickets to future games at face value before individual tickets go on sale and decide later to purchase them or sell the option to another buyer.

OptionIt, a Portland, Ore., company that launched last July and has partnerships with several pro teams, is selling "options" to buy tickets to Hurricanes football games and potential ACC championship and bowl games for the next two seasons. Although fans have to pay for the options -- prices vary based on the game -- the idea is aimed at protecting fans from high prices in the resale or secondary market, particularly for desirable matchups, such as games against FSU or Ohio State.

The concept is modeled on the futures markets, but instead of betting on something they can't touch, fans will be able to buy tickets.

"Somebody wishing to attend the Ohio State game in 2011 can go to OptionIt and purchase the option for the Ohio State game today, as opposed to waiting until the summer of 2011," said Eric Book, UM assistant director of athletics for ticket operations.

UM controls the tickets, setting aside a small number -- perhaps a few hundred a game -- and the school and OptionIt share revenue from the option sales. Options are non-refundable, but can be transferred to another buyer. If an option is purchased for tickets to a postseason game that isn't played, the fee is also not returned.

Already 77 options are available for the Sept. 17, 2011 contest against Ohio State at Sun Life Stadium. They cost $58 to $78 for a pair of tickets that will cost a total of $160 to $220, up to $210 to $290.

For UM's Sept. 2 opener against Florida A&M, options cost $12 to $14 for two tickets. When fans go to exercise those options between Aug. 17 to Aug. 26, the pair of tickets will cost $98 or $140.

OptionIt has deals with the Baltimore Ravens, Buffalo Bills, St. Louis Rams, Boston Celtics and Washington Capitals, among others.

Michael Proman, OptionIt vice president of marketing partnerships & development strategy, said the total cost of options and tickets is designed to be at least 30 percent less than the secondary market.

"The good news about the option is you've locked it in," Proman said. "You pay a little bit of a premium, but at the same time, what you're paying for is convenience and flexibility."

Baker Koppelman, Baltimore Ravens vice president of ticket sales & operations, said his team was "intrigued by the concept and the fact that it represented a new means for fans to get the tickets they want."

Sarah Talalay can be reached at [email protected] or 954-356-4173.

 

[MigratingOsprey]

interesting concept - i know that there are options/futures markets setup for a lot of other major events (the superbowl being one to pop to mind)

however, it's more of a straight gamble on those - you buy and option that will allow you to buy tickets for face value only if the team you align the option with makes it to the game

 

[Southpaw]

Not sure if this is quasi legal scalping, an answer to cash in on scalping, surcharge, or gambling.