Last week, Major League Baseball renewed its partnership with StubHub, making the service the official secondary ticket marketplace of MLB. The New York Yankees are not very happy about this, and have decided to strike out on their own, creating a partnership with Ticketmaster.
As we've told you before, StubHub has been terrible for the Yankees' bottom line. With no price floor (this new agreement does have a negligible price floor of $6 including processing fees), in place to regulate ticket prices, StubHub users are free to sell Yankees tickets far below face value, and they have done so in droves. Now, one might think that the Yankees would see this situation as a lesson in supply and demand and go about making adjustments to their ticket prices. For instance, the team could stop selling tickets at an expensive flat price for every game, and institute dynamic prices that vary from game to game.