OSU Football Tickets, Underpriced?

Some people may think that OSU football tickets are underpriced because the games always sell out and there are plenty of people who would be willing to pay more than face value for tickets. It would appear from first glance that the demand at the current price is much higher than the supply at the current price. To show why this is not the case I will try to explain OSU ticket policies and how they come close to maximizing revenue.

First OSU does sell student tickets well below face value and definitely below market value. This is actually an important thing to do. Students are the ones who get super drunk before the game and are the ones who are the loudest at the games. This is part of what gives OSU a strong home field advantage and helps OSU win close games, and winning is very important for the University to maximize total income from the games. Faculty and staff can become eligible to buy tickets at face value and this is important to the University in retaining and attracting quality people. Some tickets are used by the alumni association and different colleges and schools for different purposes, including soliciting gifts.

Most the rest of these tickets are available for purchase in season ticket packages and sold at face value around $60 a ticket. Here is the kicker, in order to be eligible to buy the season tickets you must become a member of the Athletic club, subsidize other sports, or Presidents club, subsidize the University, for a minimum annual contribution of five thousand dollars. This means that if someone has two season tickets they are paying over four hundred dollars a ticket. I do not think all the games would sell out like they do if OSU just put the face value at $400.

OSU has developed a system for distribution of football tickets that generates ridiculous money for the University. They could maybe get more money for some tickets or charge more for cretin games but that could upset the system and could run off some long time donors. Although it appears that the demand is higher than supply at the face value of a ticket, at the true cost of a ticket it appears the market may be at equilibrium. If demand for the four hundred dollar ticket goes up you better believe the university will take note and raise the minimum donation until they get back to equilibrium.