Managerial Accounting of Yankee Stadium - Essay Example

The premium seats are the seats that the team management price according to the pricing plan. The first level of non-premium seats and bleacher seats represent the value pricing tactics. This pricing is too high for the average Yankee fan as many cannot afford the $2500 or the reduced $1250 price tag on the seats (Mowen et al 553).

Many of the Yankee fans regarded the non-premium seats and the bleacher seats as their preferred seats in the stadium. The latter, according to the fans, offered a better view than the premium and the non-premium seats. This feedback from devoted fans should act as a caution to the Yankee management who are responsible for the pricing of these seats. The fans who purchase the premium and the non-premium seats fail in reselling these tickets in the secondary market. Furthermore, the high pricing of the seats has led to the stadium experiencing its lowest attendance to date.

The empty seats in the stadium are noticeable, especially with the matches being televised. The seats closer to the pitch have a lower number of fans compared to other seats in the stadium (Mowen et al 554). The Yankee management fails to acknowledge the economic situation of a majority of their fans as they continue to enforce this pricing plan. 2. What environmental factors influence the prices of Yankee tickets? Various factors influence the pricing of Yankee tickets. First, the post-season games such as the playoffs determine the pricing of the tickets.

The presence of stars such as Derek Deter and others dictates the value of tickets in the stadium. When Derek Jeter announced he would retire from the sport, all the tickets to his last matches were sold out and ridiculous prices. The level of competition dictates the pricing of the tickets in the stadium, the tickets for the finals usually cost more than those for normal league games (Mowen et al 554). 3. If Yankee Stadium does not sell out, what are the costs to the company? Consider a broad range of costs, not just the price of the unsold seat.

The failure to sell out all the seats in the Yankee stadium reduces the reputation of the Yankees. The reduced reputation resulted in low performance by the Yankee players which consequently means that the baseball enterprise will incur losses. Reduced income in contrast to the investment into the billion-dollar stadium represents losses to the grand enterprise. Furthermore, the stadium requires maintenance throughout the whole baseball season and the income from the sale of seats will not cover this expense (Mowen et al 556).

The financial impact of the unsold seats is great due to the stature of the world's richest team. The revenue from the seats is used in the aforementioned activities and financing other activities. Furthermore, the team relies on advertising revenue that comes from the televising of the matches (Mowen et al 554). The impact of empty seats on viewers at home signifies the declining nature of the team and the game overall. The advertising revenue forms the bulk of the revenue used in financing the team throughout the baseball season.