If you’re like many football fans, nothing beats sitting in the stands cheering the home
team. Indeed, in the fall, many college towns come alive as alumni and others descend on
football Saturdays. Those in football hotspots like Columbus, Ohio or Athens, Georgia, are
accustomed to inflated ticket prices as demand for seats pushes prices up. But in other towns,
football Saturdays are less intense and seats in the stands are generally available. So, imagine if
one of those towns suddenly became a football hotspot. Well, that’s exactly what’s going on this
year in Evanston, Illinois, home to the Northwestern Wildcats. Students at Northwestern can
usually buy seats for under $20, but this year, resale tickets are going for significantly more.
What’s going on? Has Northwestern built the best team in the land drawing fans from all parts of
the country? Is the university offering tuition breaks to in-person fans?
Well, the answer is simple. The university is building a new stadium and while it’s under
construction, the team is playing in a temporary location. The problem though, is that the
temporary field a fraction of the size of Ryan Field where the Wildcats usually play. The
temporary field is also something of a novelty, offering fans views of Lake Michigan, premium
seats, and upgraded food and parking options. The scarcity of seats is a new experience for
Northwestern fans who are more accustomed to a partially filled stadium on most football
Saturdays. The temporary field is also providing Northwestern with a unique opportunity to find
out what fans really want in a new venue. The feedback so far suggests that in a location where
there’s strong competition for the attention of fans, a more intimate premium experience will sell
better than a bigger stadium with more typical offerings. So, the new Ryan Field will be the
smallest in the Big Ten, with some 12,000 fewer seats than its predecessor. However, it will also
offer more premium features, which university officials believe will better meet demand. Some
expect that other universities will follow Northwestern’s lead, although for the fans in football
hotspots like those who crowd Ohio State’s iconic “Shoe” in late November to see the Buckeyes
take on Michigan, a stadium with fewer seats could be a hard sell.
Discussion Questions:
- Northwestern’s new football stadium will have 12,000 fewer seats than its previous stadium.
What does this tell you about demand for Northwestern football? What are the implications of a
smaller stadium for overall revenues? - Using margin analysis, discuss the demand for tickets at Northwestern’s temporary field. Why
are people willing to pay a significant premium for a ticket to a game this year?
Sources| WSJ: https://www.wsj.com/sports/football/hottest-ticket-college-football-northwestern-af16f470; ESPN: https://www.espn.com/college-football/story/_/id/40540624/inside-northwestern-new-temporary-football-stadium-david-braun; USA Today: https://www.usatoday.com/story/sports/ncaaf/2024/09/06/northwestern-football-stadium-temporary-ryan-field-college-duke-miami/75061705007/; Unsplash: Photo by Dave Adamson on Unsplash