Home
Iniciar Sesión
Registrarse
Loading...
Why Stadiums Can Charge Whatever They Want for Food - Video học tiếng Anh
Práctica de escucha
Práctica de escucha
/
Video
/
Business Insider
/
Why Stadiums Can Charge Whatever They Want for Food
Why Stadiums Can Charge Whatever They Want for Food
Seleccionar modo de aprendizaje:
Ver subtítulos
Elegir palabra
Reescribir palabra
Subtítulos (846)
0:01
I'm at Dodger Stadium in Los Angeles and
0:01
I'm at Dodger Stadium in Los Angeles and
0:03
I just paid $7.99 for this hot dog from
0:03
I just paid $7.99 for this hot dog from
0:06
concessions.
0:06
concessions.
0:07
But less than a mile away,
0:07
But less than a mile away,
0:10
I could get a nearly identical one for
0:10
I could get a nearly identical one for
0:12
just $2.29.
0:12
just $2.29.
0:14
That means I'm paying 249%
0:14
That means I'm paying 249%
0:17
more at the stadium. [music]
0:17
more at the stadium. [music]
0:19
And it's not just hot dogs. A 24-oz beer
0:19
And it's not just hot dogs. A 24-oz beer
0:22
at the stadium costs nearly 92% more
0:22
at the stadium costs nearly 92% more
0:25
than it would at a bar down the street.
0:25
than it would at a bar down the street.
0:27
And this burger costs nearly 70% more
0:27
And this burger costs nearly 70% more
0:30
than it would at a restaurant in the
0:30
than it would at a restaurant in the
0:32
same neighborhood.
0:32
same neighborhood.
0:33
>> I love the Dodgers, but this sucks.
0:33
>> I love the Dodgers, but this sucks.
0:36
>> [laughter]
0:36
>> [laughter]
0:37
>> Last year, I paid $11 for a bottle of
0:37
>> Last year, I paid $11 for a bottle of
0:40
water at a Lakers game. Instead of just
0:40
water at a Lakers game. Instead of just
0:43
accepting it, I asked a simple question.
0:43
accepting it, I asked a simple question.
0:45
Why? What I found was that most stadiums
0:45
Why? What I found was that most stadiums
0:48
use a kind of monopoly power.
0:48
use a kind of monopoly power.
0:51
There are 39 places to buy food at
0:51
There are 39 places to buy food at
0:53
Dodger Stadium, but they're all operated
0:53
Dodger Stadium, but they're all operated
0:55
by or in partnership with one company.
0:55
by or in partnership with one company.
0:58
>> We need to make sure that the
0:58
>> We need to make sure that the
1:00
corporations in this country are not
1:00
corporations in this country are not
1:02
squeezing every single extra dollar off
1:02
squeezing every single extra dollar off
1:06
of the consumers' backs.
1:06
of the consumers' backs.
1:08
>> The thing is, fans helped pay for most
1:08
>> The thing is, fans helped pay for most
1:10
of the stadiums across the US with their
1:10
of the stadiums across the US with their
1:12
taxes. And it's that fact that could be
1:12
taxes. And it's that fact that could be
1:15
the key to stopping stadium food from
1:15
the key to stopping stadium food from
1:17
being so expensive in the future.
1:17
being so expensive in the future.
1:21
In my search to understand how we got to
1:21
In my search to understand how we got to
1:24
$8 hot dogs, I found three turning
1:24
$8 hot dogs, I found three turning
1:26
points that transformed stadium
1:26
points that transformed stadium
1:28
operations into mini monopolies. First,
1:28
operations into mini monopolies. First,
1:31
the rise of the all-powerful
1:31
the rise of the all-powerful
1:33
concessionaire. America's earliest
1:33
concessionaire. America's earliest
1:36
stadiums didn't have dozens of
1:36
stadiums didn't have dozens of
1:37
concession stands like today. Instead,
1:37
concession stands like today. Instead,
1:40
independent vendors would flock to games
1:40
independent vendors would flock to games
1:42
and sell snacks like popcorn, peanuts,
1:42
and sell snacks like popcorn, peanuts,
1:45
and of course, hot dogs. Those vendors
1:45
and of course, hot dogs. Those vendors
1:48
set their own prices. It wasn't until
1:48
set their own prices. It wasn't until
1:50
the late 1800s that independent vendors
1:50
the late 1800s that independent vendors
1:53
began consolidating into larger
1:53
began consolidating into larger
1:55
concession businesses and signing
1:55
concession businesses and signing
1:57
exclusive contracts with stadiums or
1:57
exclusive contracts with stadiums or
1:59
teams. So, instead of multiple
1:59
teams. So, instead of multiple
2:02
independent vendors, only one vendor or
2:02
independent vendors, only one vendor or
2:04
company would be allowed to sell food at
2:04
company would be allowed to sell food at
2:06
a given stadium.
2:06
a given stadium.
2:08
This significantly limited vendor
2:08
This significantly limited vendor
2:10
competition.
2:10
competition.
2:11
>> They were able to knit together their
2:11
>> They were able to knit together their
2:15
contracts
2:15
contracts
2:16
>> [music]
2:16
>> [music]
2:16
>> at several stadiums and arenas that
2:16
>> at several stadiums and arenas that
2:19
happened to be in the same market. So,
2:19
happened to be in the same market. So,
2:21
it'd be very typical for one vendor to
2:21
it'd be very typical for one vendor to
2:25
specialize [music]
2:25
specialize [music]
2:26
in a particular area of the country,
2:26
in a particular area of the country,
2:28
like in the northeast.
2:28
like in the northeast.
2:30
>> For example, a concessionaire named
2:30
>> For example, a concessionaire named
2:32
Harry M. Stevens [music] founded Harry
2:32
Harry M. Stevens [music] founded Harry
2:35
M. Stevens Incorporated, a company that
2:35
M. Stevens Incorporated, a company that
2:37
provided concessions to three of New
2:37
provided concessions to three of New
2:39
York's major league teams [music] at the
2:39
York's major league teams [music] at the
2:41
time. The Yankees, Giants, and the
2:41
time. The Yankees, Giants, and the
2:44
Dodgers.
2:44
Dodgers.
2:45
>> He would establish his pricing based on
2:45
>> He would establish his pricing based on
2:48
[music] a cut. So, if a hot dog was 10
2:48
[music] a cut. So, if a hot dog was 10
2:51
cents, then he would get the cut of that
2:51
cents, then he would get the cut of that
2:54
hot dog. They actually became much
2:54
hot dog. They actually became much
2:56
[music] more sophisticated before the
2:56
[music] more sophisticated before the
2:59
teams themselves became stadium
2:59
teams themselves became stadium
3:01
operators.
3:01
operators.
3:02
>> Even with less competition, from the
3:02
>> Even with less competition, from the
3:04
1950s to the 70s, prices stayed low. For
3:04
1950s to the 70s, prices stayed low. For
3:08
example, at Brooklyn's Ebbets Field in
3:08
example, at Brooklyn's Ebbets Field in
3:10
1956,
3:10
1956,
3:12
a hot dog and a beer cost 60 cents
3:12
a hot dog and a beer cost 60 cents
3:15
total, roughly $7 to $7.50
3:15
total, roughly $7 to $7.50
3:19
in today's money.
3:19
in today's money.
3:20
Two decades later, that price hadn't
3:20
Two decades later, that price hadn't
3:23
moved much.
3:23
moved much.
3:24
In 1976, a hot dog and a beer sold for
3:24
In 1976, a hot dog and a beer sold for
3:27
$1.25
3:27
$1.25
3:29
at Queen's Shea Stadium, or about $7.53
3:29
at Queen's Shea Stadium, or about $7.53
3:33
today.
3:33
today.
3:34
>> Nobody was trying to get rich running
3:34
>> Nobody was trying to get rich running
3:37
these venues. They were simply trying to
3:37
these venues. They were simply trying to
3:39
provide an amenity uh for the folks who
3:39
provide an amenity uh for the folks who
3:42
were coming to the venue.
3:42
were coming to the venue.
3:43
>> Most stadiums still follow this
3:43
>> Most stadiums still follow this
3:45
concessions model. Like I mentioned,
3:45
concessions model. Like I mentioned,
3:47
there are 39 different restaurants at
3:47
there are 39 different restaurants at
3:49
Dodger Stadium, but their prices are all
3:49
Dodger Stadium, but their prices are all
3:52
set by or in conjunction with Levy
3:52
set by or in conjunction with Levy
3:54
Restaurants, which has provided all the
3:54
Restaurants, which has provided all the
3:56
concessions [music] for the stadium
3:56
concessions [music] for the stadium
3:58
since 2005. And it wouldn't be long
3:58
since 2005. And it wouldn't be long
4:00
before concession companies and teams
4:00
before concession companies and teams
4:03
wanted to cash in.
4:03
wanted to cash in.
4:05
That leads us to the second shift, one
4:05
That leads us to the second shift, one
4:08
in ownership.
4:08
in ownership.
4:10
Before the '80s, most US stadiums were
4:10
Before the '80s, most US stadiums were
4:12
owned and operated by local governments,
4:12
owned and operated by local governments,
4:15
which meant cities got a share of the
4:15
which meant cities got a share of the
4:17
profits from food sales. But by the time
4:17
profits from food sales. But by the time
4:19
the '90s rolled around, many US stadiums
4:19
the '90s rolled around, many US stadiums
4:22
were in need of major facelifts. In that
4:22
were in need of major facelifts. In that
4:24
decade alone, 95 new sports venues were
4:24
decade alone, 95 new sports venues were
4:28
either built, renovated, under
4:28
either built, renovated, under
4:30
construction, or in the planning stages.
4:30
construction, or in the planning stages.
4:33
This transition wasn't cheap. The
4:33
This transition wasn't cheap. The
4:35
average cost of building a sports
4:35
average cost of building a sports
4:36
facility rose from $3.8 million
4:36
facility rose from $3.8 million
4:40
in the 1950s to $200 million in the
4:40
in the 1950s to $200 million in the
4:43
'90s.
4:43
'90s.
4:44
>> Shea Stadium, the spanking new park is
4:44
>> Shea Stadium, the spanking new park is
4:46
dedicated by Mayor Robert Wagner
4:46
dedicated by Mayor Robert Wagner
4:48
>> [music]
4:48
>> [music]
4:49
>> and manager Casey Stengel of the New
4:49
>> and manager Casey Stengel of the New
4:50
York Mets, who have found a new home.
4:50
York Mets, who have found a new home.
4:53
>> To get these [music] expensive
4:53
>> To get these [music] expensive
4:54
construction projects done, teams
4:54
construction projects done, teams
4:56
started contributing financially to the
4:56
started contributing financially to the
4:58
stadium's construction. While they
4:58
stadium's construction. While they
5:00
weren't paying for all of the venue,
5:00
weren't paying for all of the venue,
5:03
they were typically in for
5:03
they were typically in for
5:05
>> [music]
5:05
>> [music]
5:05
>> estimates would say about 40% of the
5:05
>> estimates would say about 40% of the
5:08
cost of building the venue, on average.
5:08
cost of building the venue, on average.
5:10
>> Take the Baltimore Orioles, [music] who
5:10
>> Take the Baltimore Orioles, [music] who
5:12
contributed $9 million to the
5:12
contributed $9 million to the
5:14
construction of luxury skyboxes [music]
5:14
construction of luxury skyboxes [music]
5:17
at Camden Yards. And during the
5:17
at Camden Yards. And during the
5:19
construction of the Seattle Mariners
5:19
construction of the Seattle Mariners
5:21
ballpark in 1999, the team contributed
5:21
ballpark in 1999, the team contributed
5:24
$145 million
5:24
$145 million
5:26
toward the $517 million [music] budget.
5:26
toward the $517 million [music] budget.
5:30
With bigger investments came a new type
5:30
With bigger investments came a new type
5:32
of contract. Take a look at this lease
5:32
of contract. Take a look at this lease
5:34
agreement between Yankee Stadium and the
5:34
agreement between Yankee Stadium and the
5:36
New York City Industrial Development
5:36
New York City Industrial Development
5:39
Agency. Under this agreement, signed in
5:39
Agency. Under this agreement, signed in
5:41
2006, the Yankees manage and control the
5:41
2006, the Yankees manage and control the
5:44
stadium's operations, keeping all
5:44
stadium's operations, keeping all
5:47
revenues derived from concessions
5:47
revenues derived from concessions
5:49
facilities. Essentially, sports teams
5:49
facilities. Essentially, sports teams
5:52
said, "If we're going to help build and
5:52
said, "If we're going to help build and
5:55
operate the stadiums, we want all,
5:55
operate the stadiums, we want all,
5:57
[music] or at least most, of the
5:57
[music] or at least most, of the
5:59
profits." And this is when we start to
5:59
profits." And this is when we start to
6:02
see the steady increase in concessions
6:02
see the steady increase in concessions
6:05
pricing.
6:05
pricing.
6:06
>> Across the NFL, [music] the average
6:06
>> Across the NFL, [music] the average
6:08
price of a 16-oz domestic beer was about
6:08
price of a 16-oz domestic beer was about
6:11
$10.96
6:11
$10.96
6:13
in 2025. [music]
6:13
in 2025. [music]
6:14
That year, the most expensive one sold
6:14
That year, the most expensive one sold
6:17
for $16.99 at Northwest Stadium, home of
6:17
for $16.99 at Northwest Stadium, home of
6:20
the Washington Commanders.
6:20
the Washington Commanders.
6:21
>> [music]
6:21
>> [music]
6:22
>> To put that into context, this 12-pack
6:22
>> To put that into context, this 12-pack
6:25
of 16-oz beer
6:25
of 16-oz beer
6:27
cost me $14, or roughly $1.17 per
6:27
cost me $14, or roughly $1.17 per
6:30
bottle. I went to Dodger Stadium to see
6:30
bottle. I went to Dodger Stadium to see
6:32
just how much a single day at the park
6:32
just how much a single day at the park
6:35
would cost me.
6:35
would cost me.
6:38
Can I just have the um the Dodger dog?
6:38
Can I just have the um the Dodger dog?
6:41
>> Okay.
6:41
>> Okay.
6:42
>> And a bottle of water.
6:42
>> And a bottle of water.
6:48
It's pretty good.
6:48
It's pretty good.
6:50
Worth $8?
6:50
Worth $8?
6:52
I don't think so. Hi. Can I get the
6:52
I don't think so. Hi. Can I get the
6:54
Stella? And then um
6:54
Stella? And then um
6:57
do you guys have the Dodgeritas here?
6:57
do you guys have the Dodgeritas here?
7:01
Two drinks
7:01
Two drinks
7:03
are $65.
7:03
are $65.
7:07
Can I get your bacon cheeseburger?
7:07
Can I get your bacon cheeseburger?
7:10
>> One?
7:10
>> One?
7:10
>> This one.
7:10
>> This one.
7:12
In total, I spent over $100 at the park
7:12
In total, I spent over $100 at the park
7:15
for a hot dog, a burger, and a few
7:15
for a hot dog, a burger, and a few
7:17
drinks. And I'm not alone. How much do
7:17
drinks. And I'm not alone. How much do
7:20
you think you spent on concessions,
7:20
you think you spent on concessions,
7:25
>> Around 250.
7:25
>> Around 250.
7:27
Seven or eight drinks.
7:27
Seven or eight drinks.
7:29
And then we got the helmet of nachos.
7:29
And then we got the helmet of nachos.
7:33
And that's about it. That was a lot of
7:33
And that's about it. That was a lot of
7:34
The drinks are a lot.
7:34
The drinks are a lot.
7:35
>> How much did you spend on like drinks in
7:35
>> How much did you spend on like drinks in
7:37
total?
7:37
total?
7:38
>> Yeah, probably had four or five, maybe
7:38
>> Yeah, probably had four or five, maybe
7:39
100 bucks.
7:39
100 bucks.
7:40
>> Realistically, I spent like $66.
7:40
>> Realistically, I spent like $66.
7:43
>> Essentially, we're paying for the
7:43
>> Essentially, we're paying for the
7:44
contracts cuz you're paying $45 for
7:44
contracts cuz you're paying $45 for
7:46
parking and then $26 for beer.
7:46
parking and then $26 for beer.
7:49
>> How much did you spend on concessions,
7:49
>> How much did you spend on concessions,
7:51
food and drink at the stadium today?
7:51
food and drink at the stadium today?
7:53
>> Um about like three 350, probably four.
7:53
>> Um about like three 350, probably four.
7:57
All right, do you come to like the games
7:57
All right, do you come to like the games
7:58
a lot?
7:58
a lot?
7:59
>> No, that's why, girl. If I come a lot,
7:59
>> No, that's why, girl. If I come a lot,
8:02
I'm going to mess up my purse.
8:02
I'm going to mess up my purse.
8:04
>> Technically, she could bring in her own
8:04
>> Technically, she could bring in her own
8:06
snacks. Dodger Stadium, along with most
8:06
snacks. Dodger Stadium, along with most
8:08
MLB stadiums, allow outside food and
8:08
MLB stadiums, allow outside food and
8:11
non-alcoholic drinks. But baseball
8:11
non-alcoholic drinks. But baseball
8:13
stadiums are an outlier.
8:13
stadiums are an outlier.
8:16
That's because other major league
8:16
That's because other major league
8:18
sports, like the NFL, NBA, and NHL,
8:18
sports, like the NFL, NBA, and NHL,
8:21
generally restrict outside food and
8:21
generally restrict outside food and
8:24
drinks. This lack of competition turns
8:24
drinks. This lack of competition turns
8:26
spectators into a captive audience.
8:26
spectators into a captive audience.
8:29
We've made it to the third shift.
8:29
We've made it to the third shift.
8:31
>> In the case of stadiums, you have
8:31
>> In the case of stadiums, you have
8:33
thousands of fans in your venue for say
8:33
thousands of fans in your venue for say
8:36
a two-to-three-hour window, where the
8:36
a two-to-three-hour window, where the
8:39
only items that are available for them
8:39
only items that are available for them
8:41
to purchase as amenities are items that
8:41
to purchase as amenities are items that
8:43
you control the price of.
8:43
you control the price of.
8:45
>> [music]
8:45
>> [music]
8:45
>> Stadiums aren't the only places with a
8:45
>> Stadiums aren't the only places with a
8:47
captive audience. You've probably
8:47
captive audience. You've probably
8:49
experienced this before.
8:49
experienced this before.
8:51
>> [music]
8:51
>> [music]
8:51
>> At the airport.
8:51
>> At the airport.
8:53
But there's one key difference. At most
8:53
But there's one key difference. At most
8:55
major US airports, there are rules that
8:55
major US airports, there are rules that
8:58
keep food prices in check.
8:58
keep food prices in check.
9:00
Local airport authorities can cap how
9:00
Local airport authorities can cap how
9:02
much a airport can charge under a policy
9:02
much a airport can charge under a policy
9:05
called street pricing [music] plus. For
9:05
called street pricing [music] plus. For
9:08
example, in the New York area, if this
9:08
example, in the New York area, if this
9:11
chocolate bar cost an average of $8.27
9:11
chocolate bar cost an average of $8.27
9:14
on the outside, airports can only charge
9:14
on the outside, airports can only charge
9:17
that street price plus a 15% upcharge,
9:17
that street price plus a 15% upcharge,
9:21
capping the price at $9.51.
9:21
capping the price at $9.51.
9:24
You can take a look at our So Expensive
9:24
You can take a look at our So Expensive
9:26
episode about airport food to see how
9:26
episode about airport food to see how
9:29
difficult it is to enforce street
9:29
difficult it is to enforce street
9:30
pricing plus. But at least there is a
9:30
pricing plus. But at least there is a
9:33
policy in place. And right now, New York
9:33
policy in place. And right now, New York
9:36
lawmakers are trying to implement
9:36
lawmakers are trying to implement
9:37
something similar for stadiums. The Fair
9:37
something similar for stadiums. The Fair
9:40
Concession [music] Pricing Act. The bill
9:40
Concession [music] Pricing Act. The bill
9:43
would allow venues to charge a maximum
9:43
would allow venues to charge a maximum
9:45
of 20% above street prices for food and
9:45
of 20% above street prices for food and
9:48
non-alcoholic beverages. [music]
9:48
non-alcoholic beverages. [music]
9:50
To really understand how something like
9:50
To really understand how something like
9:51
this would work, I spoke to New York
9:51
this would work, I spoke to New York
9:53
State Senator April Baskin.
9:53
State Senator April Baskin.
9:57
So, for people who haven't read the
9:57
So, for people who haven't read the
9:59
bill,
9:59
bill,
9:59
>> [music]
9:59
>> [music]
10:00
>> what exactly is the Fair Concessions
10:00
>> what exactly is the Fair Concessions
10:02
Pricing Act?
10:02
Pricing Act?
10:03
>> If you're at a stadium or an arena and
10:03
>> If you're at a stadium or an arena and
10:06
there is a hot dog for sale, [music]
10:06
there is a hot dog for sale, [music]
10:10
um if the 10-mile radius around the
10:10
um if the 10-mile radius around the
10:13
arena has establishments [music]
10:13
arena has establishments [music]
10:15
that have hot dogs that are priced at
10:15
that have hot dogs that are priced at
10:18
$5, that means that in the arena, the
10:18
$5, that means that in the arena, the
10:21
hot dog cannot be any more than $6.
10:21
hot dog cannot be any more than $6.
10:25
>> One of the main arguments for
10:25
>> One of the main arguments for
10:26
implementing street [music] price for
10:26
implementing street [music] price for
10:28
airport food is that it's sold to a
10:28
airport food is that it's sold to a
10:30
captive audience. Since that's also the
10:30
captive audience. Since that's also the
10:33
case for stadiums, [music] it should be
10:33
case for stadiums, [music] it should be
10:35
pretty easy to enforce street pricing,
10:35
pretty easy to enforce street pricing,
10:37
right?
10:37
right?
10:38
Not exactly.
10:38
Not exactly.
10:40
>> The difference between an airport and a
10:40
>> The difference between an airport and a
10:42
stadium is that while airports are well
10:42
stadium is that while airports are well
10:44
understood to be pieces of public
10:44
understood to be pieces of public
10:47
infrastructure, even if the stadium is
10:47
infrastructure, even if the stadium is
10:49
publicly owned in full or in part,
10:49
publicly owned in full or in part,
10:53
there is a uh a legal argument that can
10:53
there is a uh a legal argument that can
10:56
be made [music] that if the stadium is
10:56
be made [music] that if the stadium is
10:58
privately operated, that once one enters
10:58
privately operated, that once one enters
11:00
into the building, then it becomes a
11:00
into the building, then it becomes a
11:02
private environment. [music]
11:02
private environment. [music]
11:04
>> Judith is right. LaGuardia Airport, for
11:04
>> Judith is right. LaGuardia Airport, for
11:06
example, is run by the Port Authority of
11:06
example, is run by the Port Authority of
11:09
New York and New Jersey, while Yankee
11:09
New York and New Jersey, while Yankee
11:11
Stadium is operated by
11:11
Stadium is operated by
11:14
well, the Yankees.
11:14
well, the Yankees.
11:17
But that's why New York State plans on
11:17
But that's why New York State plans on
11:19
getting creative. [music]
11:19
getting creative. [music]
11:21
For example, when Yankee Stadium was
11:21
For example, when Yankee Stadium was
11:23
built in 2009, the total cost was about
11:23
built in 2009, the total cost was about
11:26
$2.3 billion.
11:26
$2.3 billion.
11:28
But about $1.2 billion dollars that came
11:28
But about $1.2 billion dollars that came
11:32
from public subsidies and city tax
11:32
from public subsidies and city tax
11:34
breaks. The team also doesn't have to
11:34
breaks. The team also doesn't have to
11:36
pay property taxes [music] because the
11:36
pay property taxes [music] because the
11:38
stadium was built on publicly owned
11:38
stadium was built on publicly owned
11:40
land. The Fair Concession Pricing Act
11:40
land. The Fair Concession Pricing Act
11:43
would require stadiums [music] that
11:43
would require stadiums [music] that
11:44
receive any taxpayer money to adhere to
11:44
receive any taxpayer money to adhere to
11:47
street pricing plus 20%. If a stadium
11:47
street pricing plus 20%. If a stadium
11:50
violated the rule,
11:50
violated the rule,
11:51
>> [music]
11:51
>> [music]
11:52
>> it would risk losing tax exemptions,
11:52
>> it would risk losing tax exemptions,
11:54
face fines up to $10,000, and have to
11:54
face fines up to $10,000, and have to
11:56
repay a portion of the public funds they
11:56
repay a portion of the public funds they
11:59
receive. Historically, public investment
11:59
receive. Historically, public investment
12:01
in stadiums was based on the premise
12:01
in stadiums was based on the premise
12:03
that stadiums would provide economic
12:03
that stadiums would provide economic
12:06
benefits to surrounding communities. But
12:06
benefits to surrounding communities. But
12:08
experts aren't so sure that's the case.
12:08
experts aren't so sure that's the case.
12:11
In one survey from 2017, [music]
12:11
In one survey from 2017, [music]
12:13
80% of economists agreed that stadium
12:13
80% of economists agreed that stadium
12:16
subsidies cost taxpayers more than the
12:16
subsidies cost taxpayers more than the
12:19
local economic benefits.
12:19
local economic benefits.
12:21
>> When local governments make these types
12:21
>> When local governments make these types
12:23
of investments, they have to also think
12:23
of investments, they have to also think
12:27
about the cost burden on the people, not
12:27
about the cost burden on the people, not
12:31
just the investment, [music] but even
12:31
just the investment, [music] but even
12:34
afterwards, after the investment, people
12:34
afterwards, after the investment, people
12:37
are still spending their money.
12:37
are still spending their money.
12:41
>> Another bill called the Honest Oversight
12:41
>> Another bill called the Honest Oversight
12:43
of Ticketed Dining and Onsite Grub Act,
12:43
of Ticketed Dining and Onsite Grub Act,
12:46
or Hot Dog Act, would direct the FTC to
12:46
or Hot Dog Act, would direct the FTC to
12:49
study stadium [music] concession prices
12:49
study stadium [music] concession prices
12:51
nationwide and recommend ways to make
12:51
nationwide and recommend ways to make
12:53
them more affordable.
12:53
them more affordable.
12:55
>> You got a price, you know, $16 for a
12:55
>> You got a price, you know, $16 for a
12:58
beer, and you have no idea how that
12:58
beer, and you have no idea how that
13:01
money is being chopped up and where it's
13:01
money is being chopped up and where it's
13:03
going. We need to make sure that the
13:03
going. We need to make sure that the
13:06
corporations in this country are not
13:06
corporations in this country are not
13:08
squeezing every single extra dollar off
13:08
squeezing every single extra dollar off
13:11
of the consumers' backs.
13:11
of the consumers' backs.
13:13
>> Both the Fair Concession Pricing Act and
13:13
>> Both the Fair Concession Pricing Act and
13:16
the Hot Dog Act are currently active,
13:16
the Hot Dog Act are currently active,
13:18
but neither has been passed into law
13:18
but neither has been passed into law
13:19
yet. These proposals are meant to force
13:19
yet. These proposals are meant to force
13:22
the hands of teams and stadium
13:22
the hands of teams and stadium
13:24
operators. [music] But I was surprised
13:24
operators. [music] But I was surprised
13:26
to find at least stadium making a change
13:26
to find at least stadium making a change
13:29
on its own. And it says it's working for
13:29
on its own. And it says it's working for
13:31
the stadium and fans.
13:31
the stadium and fans.
13:33
>> [music]
13:33
>> [music]
13:33
>> When Mercedes-Benz Stadium opened in
13:33
>> When Mercedes-Benz Stadium opened in
13:35
Atlanta in 2017,
13:35
Atlanta in 2017,
13:38
it launched what it called fan first
13:38
it launched what it called fan first
13:40
[music] pricing.
13:40
[music] pricing.
13:41
It's a model that prices concessions at
13:41
It's a model that prices concessions at
13:44
or near what you'd pay on the street,
13:44
or near what you'd pay on the street,
13:45
[music] like $2 hot dogs and $5 beers.
13:45
[music] like $2 hot dogs and $5 beers.
13:49
>> We took those core items
13:49
>> We took those core items
13:51
um and made sure that they were
13:51
um and made sure that they were
13:54
available what we call street pricing.
13:54
available what we call street pricing.
13:56
>> [music]
13:56
>> [music]
13:56
>> If you could go outside the venue and
13:56
>> If you could go outside the venue and
13:58
get a Coca-Cola, you know, for $3, then
13:58
get a Coca-Cola, you know, for $3, then
14:01
we expect it to be $3 inside the
14:01
we expect it to be $3 inside the
14:03
stadium.
14:03
stadium.
14:04
>> With cheaper concessions, you would
14:04
>> With cheaper concessions, you would
14:06
think the stadium would make less money,
14:06
think the stadium would make less money,
14:08
right?
14:08
right?
14:10
Actually, the opposite happened. The
14:10
Actually, the opposite happened. The
14:12
stadium says fans spent 16% more on food
14:12
stadium says fans spent 16% more on food
14:15
and drink, [music] and it saw a 30%
14:15
and drink, [music] and it saw a 30%
14:18
increase in total transactions.
14:18
increase in total transactions.
14:20
Overall spending also increased by
14:20
Overall spending also increased by
14:22
[music] 20%. Speaking with Tim made me
14:22
[music] 20%. Speaking with Tim made me
14:25
realize just how much concession prices
14:25
realize just how much concession prices
14:28
influence [music] the fan experience.
14:28
influence [music] the fan experience.
14:30
>> They have have the freedom
14:30
>> They have have the freedom
14:33
to [music] further invest, if you will,
14:33
to [music] further invest, if you will,
14:36
in the experience. So, that ultimately
14:36
in the experience. So, that ultimately
14:38
results in hats being purchased or a
14:38
results in hats being purchased or a
14:40
jersey being purchased or other items
14:40
jersey being purchased or other items
14:44
within the experience now going into the
14:44
within the experience now going into the
14:46
basket, if you will. The model we have
14:46
basket, if you will. The model we have
14:49
in place leaves people feeling more
14:49
in place leaves people feeling more
14:51
valued and feeling more fulfilled.
14:51
valued and feeling more fulfilled.
14:54
And then yet, when they leave the venue,
14:54
And then yet, when they leave the venue,
14:56
oftentimes
14:56
oftentimes
14:58
they have taken or purchased more
14:58
they have taken or purchased more
15:00
things, but do so in a manner where
15:00
things, but do so in a manner where
15:02
they're like, "Wow, I got a lot more for
15:02
they're like, "Wow, I got a lot more for
15:04
my money."
15:04
my money."
15:05
>> Tim says the fan first pricing [music]
15:05
>> Tim says the fan first pricing [music]
15:07
model has also caught the attention of
15:07
model has also caught the attention of
15:09
other stadiums.
15:09
other stadiums.
15:10
>> It can be done in full scale like us, or
15:10
>> It can be done in full scale like us, or
15:12
it might be as simple as a fan friendly
15:12
it might be as simple as a fan friendly
15:14
meal pack.
15:14
meal pack.
15:15
>> So, with everything I've learned, the
15:15
>> So, with everything I've learned, the
15:17
only question left is,
15:17
only question left is,
15:19
will anything actually lower the price
15:19
will anything actually lower the price
15:21
of a stadium hot dog?
15:21
of a stadium hot dog?
15:24
The answer depends on who you ask. For
15:24
The answer depends on who you ask. For
15:26
State Senator Baskin and Congressman
15:26
State Senator Baskin and Congressman
15:28
Goldman, these bills are a step in the
15:28
Goldman, these bills are a step in the
15:30
right direction.
15:30
right direction.
15:31
>> We need to push forward and make sure
15:31
>> We need to push forward and make sure
15:34
that the consumers rights are front and
15:34
that the consumers rights are front and
15:37
center. [music] And that's why we are
15:37
center. [music] And that's why we are
15:39
pushing forward with this bill and at a
15:39
pushing forward with this bill and at a
15:41
minimum there's a lot of transparency
15:41
minimum there's a lot of transparency
15:43
and there's more data that we can study
15:43
and there's more data that we can study
15:46
and learn more about this.
15:46
and learn more about this.
15:48
>> How realistic is it for it to for it to
15:48
>> How realistic is it for it to for it to
15:50
become [music] an actual law?
15:50
become [music] an actual law?
15:52
>> The success of all of these bills really
15:52
>> The success of all of these bills really
15:55
depends [music] on the people.
15:55
depends [music] on the people.
15:57
And how much they push people like
15:57
And how much they push people like
15:59
myself and my colleagues [music]
15:59
myself and my colleagues [music]
16:02
to get it over the finish line. When we
16:02
to get it over the finish line. When we
16:04
agitate the consumers and remind [music]
16:04
agitate the consumers and remind [music]
16:08
them how much of their hard-earned tax
16:08
them how much of their hard-earned tax
16:12
dollars went in to creating that arena
16:12
dollars went in to creating that arena
16:15
or that stadium,
16:15
or that stadium,
16:17
it will help them connect the dots.
16:17
it will help them connect the dots.
