The Mystery of a Losing Team’s Full Stadium

We have a mystery that only an economist could solve.

Northwestern’s Full Stadium

No one expects the Northwestern Wildcats to have a winning season. WSJ says they have a “losing record, a no-name roster,” and a “zilch” chance” of reaching the playoffs. And yet, their stadium is a sellout.

Ticket prices have soared from a $17 secondary market average to $129 for the cheapest seats while the best season tickets top $3,000. The reason seems to be the team’s temporary home. Because the frequently half empty 47,000+ seat stadium where they had always played was demolished, and a new one won’t be finished until 2026, the athletic department suggested a 2-year venue that could be quickly built and then torn down. Reputedly, its views of Lake Michigan are magnificent, its location is near campus, and its size is small. As a result, all of its 12,000 seats are a hot ticket:

Our Bottom Line: Supply and Demand

Even more than the water, the cool breezes, and the location, supply and demand explain the mystery of the full stadium for a losing team. We can start with a supply and demand graph that illustrates low prices and empty seats. The demand curve crosses supply at a rather low point.

Meanwhile, during construction of the new stadium, the temporary HQ for the Wildcats seems to have decreased the quantities demanded, shifting the curve upward. At the same time the quantity supplied shrunk to 12,000 from the 47,000 or so seats that were available:

Although demand shifted leftward displaying a decrease, what people were willing and able to pay went up. So, with our smaller supply curve. prices soar…

And we’ve solved our mystery of a losing team’s full stadium.

My sources and more: Three articles had the facts we needed to solve the mystery of Northwestern’s full stadium. WSJ is a good place to start, then The Washington Post, and finally, the Bleacher Report.