The New York Jets are auctioning off 2,000 personal license seats (PSLs) through the eBay Inc. (NASDAQ:EBAY) website. These are the best seats at the Giants’ stadium. This is the first time that a major U.S. sports team embraced the online auctioning of these seats. Giants expect these seats to go for more than $25,000 each.
A personal license seat will give the buyer a stadium-life ownership of the seat. The buyer can always resell these seats if they desire to. PSLs started in 1993 and help publicly finance new and upcoming stadiums. The new $1.6 billion stadium will host games for the Jets and the Giants starting 2010.
eBay will be selling the licenses through StubHub between October 19-27. The 2,000 lower level seats will be sold on StubHub near the 50 yard line. Another website, Jetscoachesclub.com will be selling a floor price for the other PSLs. All bidders will be screened and have to provide a credit card. eBay will be making commission from this deal.
“These are the best seats in the house, so how do you set a price for
them?” stated Matt Higgins, EVP of Business Operations of the New York Jets. “Let the market decide.”
The Dallas Cowboys are also going to start playing in a new stadium. The price set for the 1,000 PSLs in that new stadium was at $150,000 each. The Giants CEO John Mara announced that he wanted to raise $370 million for the new stadium. PSLs are a great way to gain capital seamlessly. Tickets for the games in the new stadium are between $85 and $700.
eBay acquired StubHub for $310 million in January 2007. Looks like it is already starting to show some sort of ROI.