Detroit's Woes Impact Stanley Cup Ticket Sales

The ripple effect of the bad economy is now being felt in Hockeytown. Detroit is passionate about their sports and especially their Red Wings and typically show it by attending sporting events. Last year, when the Red Wings made it to Stanley Cup Finals, tickets were sold out in under 8 minutes, according to reports. This year the Red Wings once again are advancing to the Stanley Cup Finals, but ticket sales have not been as brisk.

The tickets went on sale at Ticketmaster.com (Nasdaq: TKTM) at 10AM today and pairs of tickets were still available 40 minutes later.

The demand in Hockeytown for the hot Red Wings has obviously weakened, raising the question as to why the demand ostensibly has dropped so dramatically in only a year? Also, read below to see some public companies that could be impacted from fans choosing to spend less on sporting events.

Below are some of the various reasons that could be attributed the lack of demand for these playoff tickets that range from $125 a seat to $750 a ticket.

• Detroit is an automotive town, and obviously with the threat of GM (NYSE: GM) bankruptcy filing looming next week and Chrysler already filing Chapter 11, likely has many fans staying away from the game.
  
• In the current economic climate, many don't want to spend their hard earned dollars on luxuries, such as expensive tickets to a two hour hockey game.
  
• Sports Business Daily reported that 1,900 Red Wings' season ticket-holders opted to not renew their tickets for the playoffs, thus making more tickets available in today's online sale.
  
• The Red Wings won the Stanley Cup last year, so there is a 'been there done that mentality'.

Companies that could be impacted by people spending less on sporting events and tickets.

• Ticketmaster will likely receive less fees as consumers cut back their spending.
  
• eBay's (Nasdaq: EBAY) Stubhub will continue to feel the impact of fans choosing to stay home versus attending the game. eBay bought Stubhub for approximately $360 million.
  
• Live Nation (NYSE: LYV), another ticket reseller and concert promoter, is trying to diversify its revenue stream, hoping to rely less on ticket sales.

-Jason Raznick
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