The New York Mets sold out the luxury suites in their new stadium for as much as $500,000 a year, avoiding the financial crisis, said Dave Howard, the team's executive vice president for business operations.
Mets season-ticket holders also are renewing at ``extremely high'' rates -- even with price increases -- for the team's first season at Citi Field next year, Howard said.
``We haven't seen the effects of the economic situation, but certainly we are mindful of the economy and especially in our community and market place,'' Howard said in an interview. ``We have a unique historical situation that maybe gives us a little bit of an advantage to withstand some of the challenges that the economy is presenting.''
The Major League Baseball club is moving to the $800 million ballpark next season after spending 44 years at Shea Stadium. The stadium, with Citigroup Inc. paying $20 million a year for naming rights, includes premium club seats, four restaurants, bars and lounges, and food catered by New York restaurateur Danny Meyer.
New York is at the center of the economic crisis with the collapse of Wall Street firms Lehman Brothers Holdings Inc., Bear Stearns Cos. and American International Group Inc. -- all based in Manhattan. New York and six surrounding counties are projected to lose 64,000 financial-services jobs by the second quarter of 2010, according to Moody's Economy.com.
$250,000 Starting Price
The Mets began selling their 49 suites, with prices starting at $250,000 a year, in early 2007 and sold more than half by this spring, Howard said.
Suites have indoor and outdoor seating, televisions and private bathrooms. The length of the contracts range from three to 10 years. Lehman, AIG and Bear were not purchasers, Howard said. He wouldn't identify any buyers.
AIG, which was bailed out by the U.S. government, was a Mets sponsor at Shea Stadium with a sign on the outfield wall. The agreement couldn't be continued at the new ballpark because Citigroup has exclusive rights as the club's financial-service partner as part of its naming-rights agreement, Howard said.
The team also signed six ``signature partners'' for sponsorships at the new ballpark, including Delta Air Lines Inc. and Anheuser-Busch Cos., with the other four yet to be announced.
The renewal rate of season-ticket holders has been ``extremely high,'' Howard said. The top ticket price at Citi Field is $495 compared with $117 at Shea. Half the seats will be $50 or less, with 80 percent under $100.
The New York Yankees are also moving into a new ballpark next season that with more premium seats and 56 luxury suites, almost triple the amount at their old stadium. The top ticket price is $2,500 a game.
Yankees Chief Operating Officer Lonn Trost didn't return calls seeking comment.
(Source: Bloomberg)
