VIPTIX President & CEO, Nick Giammusso, has over 30 years experience in helping people cross the Super Bowl off their "Bucket List!" With all that goes into planning a once in a lifetime trip, he has been in the news in the past, helping to explain the attraction & spectacle that is the Super Bowl!
Meida Press Release For Super Bowl 2023
Super Bowl 50 Prices Remain High, as Cautious Ticket Brokers Try to Avoid a Repeat of Last Year’s Fiasco
BUFFALO, NY (PRWEB) JANUARY 19, 2016
I’m sure by now you’ve all read or heard about the 2015 Super Bowl ticket cancellations that traveling fans faced in Phoenix, Arizona. Skyrocketing Super Bowl ticket prices left fans high and dry in the Arizona desert. For insight on what Super Bowl ticket prices will do this year we need to look at what transpired last year.
There's no denying that San Francisco will be a truly hip and fabulous Super Bowl 50 host city. The NFL and City of San Francisco, as well as ticket brokers and travel/tour companies, have been planning for this game and the anticipated demand for a year now. For those fans not lucky enough to have connections or win the NFL lottery for Super Bowl tickets, there are few choices but to find a reputable ticket broker or travel and tour company offering tickets and travel packages to the big game.
After 22 years of business, VIPSuperBowlTix.com has planned and organized Super Bowl tickets and travel packages for football fans traveling to many different host cities. “No Super Bowl has been so difficult to acquire tickets for, as it was during last year’s game in Arizona”, said company President & CEO Nick Giammusso.
For ticket brokers, the Super Bowl business can be a very lucrative one, and at other times, not as much. It was definitely not so, for those brokers that were speculating that ticket prices would drop as we got closer to the big game last year.
An upper level Super Bowl ticket started out at $3,200 after the championship games last year, but ended up $10,000 at kick-off. Many brokers that sold tickets or packages well before the game got burned. The skyrocketing ticket prices put some company’s losses into the six and seven figure range and threatened to bankrupt them. So ticket brokers canceled their orders at the last minute when it was evident they would not be able to purchase some for their clients at a reasonable price. Many places chose to refund their clients even AFTER they had traveled to Phoenix.
It was a nightmare for ticket brokers and more so for football fans that were excited to attend the Super Bowl, only to experience the unimaginable. They were left stranded without a way in.
So what can fans that want to make the trip to San Francisco for the Super Bowl expect ticket prices to do this year?
Super Bowl tickets can always be purchased on the secondary market in the two weeks leading up to the game. Doing so will cost fans thousands of dollars at least. It’s possible to get tickets to the 2016 Super Bowl for face value ($900 for upper level tickets), though it isn’t likely. Each year, the NFL holds a lottery, giving 500 fans a chance to buy two tickets to the game.
Most tickets to the Super Bowl 50 will be purchased in other ways. The two teams involved, each get 17.5% of the tickets, and the team that hosts the game gets 5%. Other teams in the NFL each get 1.2% of the seats, and those organizations hold lotteries of their own amongst season-ticket holders. The NFL office has the final 25.2 percent of the tickets.
The other ways to purchase tickets are from ticket brokers and travel companies that offer packages. These companies are offering such items at prices 25-35% higher than usual this year.
"Last year’s skyrocketing Super Bowl ticket prices have left those in the Super Bowl ticket & travel business a bit gun-shy and extra cautious in their preparations for Super Bowl 50 in San Francisco”, says VIPSuperBowlTix.com's Nick Giammusso. “We are proud to say that we filled every Super Bowl order even if it meant we lost money. Our reputation has been outstanding over the last 22 years and we believe in doing the right thing. That’s why you didn’t hear about our company busting orders, in the news.”
The Super Bowl is an event where demand far exceeds supply. There are so many online ticket companies these days; it can be hard to know who to trust, especially when you only hear about the negative stories. As in any other industry, get referrals and use a ticket service or travel agent with a proven track record and a brick and mortar office location. If the offer sounds too good to be true, it probably is. Most reputable companies offer specific buyer guarantees. Get a signed contract that includes price, seating parameters, cancellation policy and a firm delivery date. Pay with a credit card for your protection.
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January 20, 2014
Superbowl Weather Forecast Spikes Demand for VIP Tix
How may the weather affect Superbowl ticket prices this year? The combination of cold weather and a large pool of local New York City corporate buyers are spiking demand for VIP Superbowl Tix inside MetLife Stadium.
Buffalo, NY (PRWEB) January 20, 2014
Why are some brokers speculating record breaking VIP Superbowl tickets sales for this year's Superbowl that could reach a million dollars for just one suite?
We are now less than two weeks away from a historic Superbowl XLVIII. It will be the first Superbowl held in the New York/ New Jersey area and the first outdoor cold-weather Superbowl ever played.
It has now been determined that the Denver Broncos and Seattle Seahawks will be Superbowl opponents. "The biggest player in determining the price of Super Bowl tickets won't be [Russell] Wilson or [Peyton] Manning, but Mother Nature," said Nick Giammusso, President & CEO of VIPTix.com, a Buffalo, New York-based brokerage, which was selling upper-level seats Monday for $2,550 and lower-level seats for $3,450.
The weather forecasters are calling for colder than normal temperatures in the mid 20's at kickoff. In this case, we are sure to see more winter hats, scarves and gloves on spectators than you would normally ever see at such a prestigious corporate event as the Super Bowl. "The combination of cold weather and such a large pool of local area corporate buyers are spiking demand for VIP club seats and suites that offer a place to get warm", says VIPSuperBowlTix.com Director of Marketing Alex Szczesny. I have no doubt the demand will be there, especially with the forecast of very cold weather and people that will start looking for seats with indoor access.
MetLife Stadium has a seating capacity of about 82,566. There are over 10,000 vip club seats and over 220 luxury vip suites that offer access to a climate controlled environment. In addition to higher demand because of the possibility of foul weather, supply this year has been severely constricted. In years past, suite holders for the Jets and Giants would have gotten access to their suites for the Super Bowl, which they could in turn sell for a hefty profit. This year, the NFL pulled its version of eminent domain and took away suites from team season ticket holders to include them as part of million-dollar sponsorships for the NY/NJ Super Bowl host Committee. The committee has 28 sponsors, and when you add to that teams, the league, and existing sponsors, there are likely less than ten suites on the market, compared to 30 in an average year.
There are options for those wanting to watch the game in warmth but only if they are willing to shell out some big bucks this year.
While ticket prices for this year are about 15% above the four-year average, the difference in suite prices are anywhere from 80% to 300% higher. In years past, a suite could cost from $150,000 to $250,000. This year, prices are starting at $450,000. The luxury VIP suites at MetLife Stadium can hold anywhere from 12 to 30 people. Most offer outdoor seats in addition to a climate-controlled lounge with televisions and catering. At least there will be food and an open bar. Not only are the local corporate buyers pressuring the VIP Superbowl seats market but also those companies in Denver and Seattle that will want to entertain. Consider that Seattle's Microsoft alone has over $63 billion in cash on their balance sheet.
Thus, a million dollar sale for a VIP luxury suite or two is conceivable with increasing demand for suites and very little supply.
MetLife also offers club areas for some ticket holders, which would offer respite from the cold, but not the same ability to watch the game on the field from inside. Still, at an estimated $6,500 and up, the club seats are a cheaper way to get out of the cold, Giammusso says. Wall Street had a great year and the Super Bowl is a way for companies to celebrate corporate relationships and entertain clients.
January 30, 2013
David Bertola
Buffalo Business First Reporter- Business First
A Williamsville company is selling Super Bowl tickets starting at $1,500. And that’s to sit in the upper end zone for this Sunday’s game between the Baltimore Ravens and San Francisco 49ers.
Super Bowl XLVII will be held in New Orleans at the Mercedes-Benz Superdome. VIPTix, which is located at 5762 Main Street, sells tickets to events worldwide.
Officials say for those interested in a 50-yard-line seat, the cost is $6,000.
“We’ve been super busy,” said co-founder Nick Giammusso, who added that they’ve been selling tickets and packages to clients from all over the country.
The hot seller, he said, has been packages that include hotels, as rooms are tougher to come by as the game gets closer.
All total, he said they’ve sold more than 200 such packages, and his phones continue to ring. They’ve hired three part timers to sell tickets, packages that include hotels and admission to high-profile parties this weekend.
January 18, 2012
PRWeb
Is a Super Bowl in Indianapolis Sexy?
The common misconception of this year's Super Bowl is that Football Fans are not as likely to travel to Indy as opposed to a trendier and more tourist-friendly destination like Miami. How will this affect Super Bowl Supply & Demand?
How can one predict what Super Bowl prices will do this year?
Host City Information
There's no denying that Indianapolis as a Super Bowl host city will have its drawbacks. First, the weather in the mid-west in February is less than an ideal destination when travelers are thinking about investing serious dollars in a mini-vacation. Secondly, the city is not a major metropolitan area with an abundance of high-end hotel properties. This poses a serious problem in providing adequate hotel rooms for such a huge corporate event like the Super Bowl. "Finding four and five-star properties has been a huge headache for us this year, says VIPSuperBowlTix.com Nick Giammusso. It compares to the Super Bowl in Jacksonville a few years back when the NFL arranged for cruise ships to satisfy the need for rooms. Indy does not have that luxury and hotel prices are through the roof!"
In terms of geographical location, Indianapolis sits in the middle of the country with relatively short air travel times for football fans from both the East and West coasts.
Supply and Demand
For those fans lucky enough to win the Super Bowl Lottery they will have to fork over either $1,000 for Club Seats or $800 for any other seat location. That's the face-value price!
The secondary market for Super Bowl tickets is much like the stock market. The question is will Super Bowl prices rise or fall in the days leading up to the big game?
Ticket Brokers are offering Super Bowl tickets in the range of $2,500- $10,000 per ticket. Super Bowl ticket prices and packages are trending up approximately 20-40% in comparison to last year's game when two small market teams Pittsburgh and Green Bay played in Super Bowl XLV and Dallas offered an abundance of accommodations.
"VIPSuperbowlTix.com has had to increase their ticket and hotel package prices by about 20 percent in comparison to last year's game, said Nick Giammusso President & CEO of VIPseats.com.
Super Bowl ticket prices and packages will be hotter than normal this year. It's Economics 101.
Let's talk demand. The four remaining teams are from wealthier areas of the country including New York City, Boston, Baltimore/Washington DC, and San Francisco Bay areas. The New York Giants, New England Patriots, San Francisco 49ers and Baltimore Ravens represent a rich heritage of football fans in big markets with deep pockets certainly spiking demand of Super Bowl tickets and hotel rooms.
Let's talk Supply. The Super Bowl game will be played at Lucas Oil Stadium which will have a seating capacity that will be about 70,000 for this mega event. In comparison, last year's Super Bowl, which was held at Cowboys Stadium in Dallas, had seating for 105,000. Using simple math, one can see that supply of Super Bowl tickets will be approximately 35,000 (or 33% percent) less than last year's availability.
Unlike the Federal Reserve, the NFL cannot keep printing Super Bowl tickets to meet demand. Unfortunately or fortunately, supply is fixed at 70,000 seats!
One such variable that cannot be ignored is the state of the US economy. As weakness in the housing market and weakness in the Dollar pushes the US economy further into recession will Super Bowl ticket buyers balk at ticket prices that are now starting at $2,500 per ticket and complete travel packages that run $3,995 per person and up?
For this answer we can look at last year's Super Bowl business...
“Last year, there was a huge demand for Super Bowl tickets and packages,” says VIPSuperBowlTix.com President Nick Giammusso. “Cowboys Stadium was aiming for a near-record capacity of over 105,000, but the NFL and Jerry Jones got greedy as many temporary seats were not ready in time for the big game. The league was left with a black eye as certain folks didn’t get in.” Indianapolis may be smaller than Dallas and Lucas Oil Stadium seats 33% fewer fans than Cowboys Stadium (approx. 70,000), but this year’s Super Bowl is already receiving tremendous interest."
September 26, 2011
A People-Person's Ticket to Success
A conversation with Nick Giammusso
By Jane Kwiatkowski
Ticket broker Nick Giammusso attended his first rock concert at age 14. When he was 16, he began studying entertainment contracts. By age 18 he was picking the brains of touring performers.
The son of Italian immigrants, Giammusso, 43, today operates VIP Seats, a ticket company in Williamsville that he started in 1993 with his sister Della Giammusso. Nick Giammusso sells tickets for sporting events, concerts and theater to customers across the country. When he tells people what he does for a living, he expects a lot of questions.
He gets them.
People Talk: What was your first concert?
Nick Giammusso: Journey at the Aud. I met Burt Reynolds and Loni Anderson when I was 8 or 9 years old. My godparents were Irwin and Monique Pate, concert promoters from the '70s and '80s. They never had kids, so I was kind of their kid. They would take me to shows and give me odd jobs to do, like hand out those old concert posters.
PT: And you were good at it.
NG: I'm a people person. I enjoy getting to know people. I was fortunate to be around the concert business as a kid. I would sit with Garth Brooks or Neil Diamond and ask them how they got to where they were. I think everybody has a story.
PT: What ticket would you be willing to wait in line for?
NG: U2. I'm a big Sabres fan, too. I'm a Buffalo guy who grew up with the Sabres at the Aud. We used to run the box office at the Aud, and when it closed people still were calling me for tickets. That's how we got started.
PT: What was it like when you opened your own company?
NG: The Wild Wild West. It was frowned upon to be a ticket broker. Only recently when they saw there was so much money in the business did big companies come around. The Sabres resell their own tickets now, Ticketmaster, too. We were here 10 years before StubHub.
PT: Has eBay been a friend to you?
NG: It's so difficult selling on eBay. We've tried. We don't need eBay anymore. We have so many other channels. We consider eBay like a Craigslist.
PT: You must attend many events.
NG: No. I just don't have time. I'm running a business. I have tickets for everything, and it's just hard for me to get away. If I do go -- and I don't go a lot -- I'll get good seats.
PT: How do you get your tickets?
NG: We have season tickets all over the place. Just for hockey, we own season tickets for Chicago Blackhawks, New York Rangers, Boston Bruins, Detroit Red Wings, Florida Panthers, Tampa Bay Lightning, Philadelphia Flyers. I could go on and on.
PT: Did you ever sell tickets on the street?
NG: We never worked the street. My friends call me a scalper with an office. A third of our business is actually purchasing tickets, so we spend a lot of money on tickets that should be valuable. We belong to fan clubs for concerts. We buy seats from clients. It's like buying real estate. We're predicting what will be in demand in the future.
PT: And if you're wrong?
NG: We have drawers full of tickets that we got stuck with. We're dealing with tickets that have an expiration date -- like food. After the show, they're worthless.
PT: Why don't you throw them out?
NG: Tax purposes. And when kids come in the office, I'll give them sports tickets.
PT: What has been your costliest mistake?
NG: Janet Jackson tickets. We purchased 100 right before her concert, around Easter. I think we got stuck with 96 seats. I ended up driving down to Perry Street and handing them out to all the kids.
PT: How often do you donate tickets like that?
NG: A lot. We do Boys & Girls Club, inner-city football teams.
PT: What's a hot ticket these days?
NG: Out of the millions of things we do, the Buffalo Sabres. Garth Brooks' country shows are phenomenal. We do bus packages to Cleveland, Pittsburgh, Syracuse -- 10 to 15 buses for each show. Country shows have great energy.
PT: How often do you see your customers?
NG: It depends. I've got clients who come in the door once a month. Others I see once a year. Some people like the U.S. Open. Most of our business is done online, but it's all about relationships.
PT: You are easygoing.
NG: It drives my wife crazy that I'm so mellow. It drives my employees crazy. Nothing really rattles me.
PT: Bad drivers?
NG: I'm not a honker.
January 19, 2011
Is there such a thing as a Recession-proof economy?? VIPSuperBowlTix.com thinks so- Super Bowl XLV in Arlington!
How can one predict what Super Bowl XLV ticket prices will do this year?
PRWeb
Buffalo, NY (PRWEB) January 19, 2011
The fundamental state of our economy is in crisis! The American economy is in retreat. National unemployment is holding steady at nearly 10 percent, and no one is forecasting lower numbers for 2011. The Federal Government is printing money as fast as they can to help Congress cover the exploding and unprecedented US National Debt. Experts are warning of a total collapse of the US Dollar and point to the rising prices of Gold & Silver as evidence of a lack of faith in the Federal Reserve and policy makers in Washington.
How then can anyone justify classifying Super Bowl XLV in Arlington as recession-proof? Is there a crystal ball out there clear enough to predict this year's Super Bowl Business??
It's all about Supply and Demand, football common sense and Super Bowl business experience. Let's look at the facts.
First, the Football Facts.
The Pittsburgh Steelers, New York Jets, Chicago Bears or the Green Bay Packers will be entertaining the world on February 6, 2011 in Super Bowl XLV in Dallas, TX. The National Football League (NFL) is guaranteed of a dream match-up for this year's recession-proof Super Bowl Economy!
This week there is a feeling of euphoria in these cities. Steeler Nation and Packer Fans alike have a passionate fan base who would more likely than not give away their first-born child for tickets to the big game. The Steelers last participated in Super Bowl XL in Detroit, MI and Super Bowl XLIII in Tampa, FL as there were significantly more Steeler Fans in attendance at the Super Bowl than those of their small market opponents Seattle and Phoenix. No way will the fan support come from just one side for this Super Bowl! The NY Jets and the Chicago Bears are large markets that are in the picture with generations of rabid fans and corporations with deep pockets! Any way you slice it, this year's match-up will feature teams that will spike demand.
Supply and Demand.
For those fans lucky enough to win the Super Bowl Lottery they will have to fork over either $1,000 for Club Seats or $800 for any other seat location. That's the face-value price!
The secondary market for Super Bowl tickets is much like the stock market. The question is will Super Bowl prices rise or fall in the days leading up to the big game?
Ticket Brokers are offering Super Bowl tickets in the range of $2,500- $10,000 per ticket. Super Bowl ticket prices and packages are trending up approximately 15-20% in comparison to last year's game when two small market teams Indianapolis and New Orleans played in Super Bow XLIV.
"VIPSuperbowlTix.com has had to increase their ticket and hotel package prices by about 20 percent in comparison to last year's game, said Nick Giammusso President & CEO of VIPTix.com.
Super Bowl ticket prices and packages will be hotter than normal this year. It's Economics 101.
Let's start with Supply. The Superbowl game will be played at Cowboys Stadium which will have a seating capacity that will be about 95,000 for this mega event. In comparison, last year's Superbowl, which was held at Sun Life Stadium in Miami had seating for 78,000. Using simple math, one can see that supply of Superbowl tickets will be approximately 17,000 (or 18 percent) more than last year's availability.
Will this increase in Supply of tickets be enough? No! Unlike the Federal Reserve, the NFL cannot keep printing Super Bowl tickets to meet demand. Unfortunately or fortunately, supply is fixed at 95,000 or so seats!
Now let's look at Demand. This year's Super Bowl demand on tickets, hotels, hospitality and airfare can be described in one word: With either of the Jets, Steelers, Packers or Bears as participating teams- Huge!
One such variable that cannot be ignored is the state of the US economy. As weakness in the housing market and weakness in the Dollar pushes the US economy further into recession will Super Bowl ticket buyers balk at ticket prices that are now starting at $2,500 per ticket and complete travel packages that run $3,495 per person and up?
The Corporate Business out of New York or Chicago will pressure supply as well as the upper middle class fan base out of Green Bay and Pittsburgh markets. Although Pittsburgh and Green Bay are considered small market teams, both organizations do have a huge national following that travels well and both will definitely spike demand.
Other factors sure to further spike demand include Arlington's geographical location and the corporate-rich Dallas/FortWorth area businesses.
In terms of geographical location, Arlington sits in the middle of the country with relatively short air travel times for football fans from both the East and West coasts. The Dallas/Fort Worth Metroplex is home to numerous corporate headquarters. The metropolitan area is home to over 10,000 corporate headquarters making the Dallas/Fort Worth Metroplex the largest corporate headquarter concentration in the United States. Major companies that call this area home include American Airlines, AT&T, Texas Instruments, Exxon Mobil, Electronic Data Systems (EDS), Southwest Airlines, Blockbuster and RadioShack to name a few.
So sitting here with these four teams in Super Bowl contention today, in terms of a successful Super Bowl XLV business, Super Bowl XLV will have a great match-up no matter who wins the AFC and NFC Championship games next Sunday and that's good news for fans watching at home and anyone in the Super Bowl business.
April 13, 2010
This week's MAC Chat features our interview with Nick Giammusso, President /
Co-Founder of VIPTix.
What's the "hot" ticket right now?
Everywhere I go I get asked this question over and over. You can find
this information on our homepage by visiting www.viptix.com. Under
the three Sports-Concerts & Theater headings you will find the Top 20
Most Popular events for the week. The Boston Red Sox, Justin Bieber and
Wicked hold the #1 spots as the most popular events in North America
this week! We are currently re-branding ourselves. VIP Seats has just
this week unveiled our new logo and brand new website that we feel is
one of the best in the ticket business.
How can my Travel Agency benefit from VIPTix's services?
We pay commissions! We specialize in premium seating to sold out events
worldwide. We have found that event tickets are true compliments to
travel. We're event ticket specialists! What we hear from Agents all
over the world is that they're looking for someone in our business they
can trust! I can tell you today as you're reading this, that you have
now found someone in the ticket business you can trust! We've been at
this for over 16 years now. We have over 5,000 registered Travel
Agents! You can sign up to become an affiliate of VIPTix online and
start earning commissions today.
Does VIPTix handle International Events?
Yes! In the last 90 days we have booked event tickets and packages to
such prestigious international events as the 2010 Winter Olympics-
Vancouver, FIFA 2010 World Cup Soccer- South Africa, French Open- Paris,
Wimbledon- London, Sumo Wrestling- Japan, Serie A Soccer- Italy,
Premiership Soccer- England, Formula One- Montreal & U2- Rome.
Does VIPTix send out a Newsletter?
Our clients have always craved information! As an organization we
haven't always been very good at that. Today, Social Networking gives
us the opportunity to open those lines of communication with our
clients. Facebook is an amazing tool on so many different fronts. As
an example, we can offer 'Last Minute Specials' and concert
announcements to all of our Facebook Fans with a few quick keystrokes.
I strongly suggest you become a Facebook Fan of VIPTix! You've also
probably received our Mailpound emails over the years. We have come to
realize that Agents are more likely to open an email from Mailpound so
we'll keep sending them!
What make VIPTix so different from all those other online ticket
company's?
Service! You call and we actually answer the phone. Sounds simple but
it's true. The last thing any Agent wants to do is lose a big client
over an event ticket order. If we say we're going to deliver your
tickets to your client's London Hotel we will! We do it time and time
again! We treat our clients like Gold! In our industry, we have
definitely carved out a "niche" in the Travel Industry. We under
promise and over. We've had a working relationship with almost all of
the major credit card companies concierge side of the business that
includes MasterCard, Citibank VISA, Discover & Carte Blanche. In fact,
our website is directly linked to the Citi Cards website. They trust
us, shouldn't you?
Thank you Nick for that great interview!
January 04, 2008
World's most recession-proof economy? The Super Bowl
By John Helyar
ESPN.com
The Dow Jones industrial average has dropped 8 percent since the start of the year. The government just reported that the U.S. median home price dropped 10 percent last year. The economy is fading faster than the Dallas Cowboys.
But never fear. In these dark economic times, there is still one beacon of light: Super Bowl XLII. America's corporations and citizens might be paring expenses and bracing for hard times in every other respect; but in metro Phoenix this week, the mantra is: Recession? What recession?
Super Bowl tickets just might be the most valuable currency in the United States right now.
Rooms at Scottsdale's 5-star resorts are going for $3,000 a night (four-night minimum), and getting Bill Belichick to smile is easier than booking one. Glendale Municipal Airport near the stadium, which usually handles four flights a day, will park 100 corporate jets this week. Hundreds more private aircraft will swarm into other local airports.
The bull market for Super Bowl tickets is the inverse of Wall Street's bearish one. The average price of tickets sold on StubHub is currently $4,227, a hefty premium from their face values of $700 and $900. The game already ranks No. 4 in total dollar volume among StubHub's all-time best-sellers, with a week to go before game time. (The top three: the past two BCS championship games and last year's Super Bowl.)
The game isn't the only hot ticket in Arizona. The Super Bowl host committee's "big ticket gala" costs $10,000, if you'd like an NFL Hall of Famer to grace your table. Tickets to the Playboy and Maxim parties, perennially among the week's top bashes, are going for $2,000 to $3,000. VIP tickets to the "Super Village" in Scottsdale, where events such as a celebrity flag-football game featuring Pamela Anderson and Matt Leinart will be staged, are going for $500.
The Super Village alone has 10 corporate sponsors aiming to connect with well-healed consumers. Pontiac will present a 50 Cent concert, while showing off its 2008 model. Samsung is prominently displaying its latest HDTVs.
Some of the NFL's biggest sponsors have had their bells rung lately. Motorola last week reported horrible year-end results for 2007, with revenues falling 15 percent because of its sagging cell-phone business. Sprint Nextel lost 109,000 wireless subscribers in the fourth quarter of 2007 and recently announced it was laying off 7 percent of its workforce and closing 8 percent of its company-owned retail stores.
Yet they're at Super Bowl XLII in full force. Sprint Nextel is promoting the heck out of its new SEE video service, covering the party scene and having expert commentators such as Marshall Faulk discuss the game. Its Sprint "Phone-a-Friend" program at the NFL Experience allows fans to ask NFL players to talk with a friend or family member on Sprint wireless.
Jim Andrews, editorial director of the IEG Sponsorship Report newsletter, sees no pullback in sponsors' spending at the Super Bowl.
One way to get attention for the new Pontiac? Present 50 Cent in concert during Super Bowl week.
"It seems recession-proof," he says. "It's the safe bet, the way the companies see it. They may not want to get involved in new sponsorships at a time like this, but they know what they're getting from the Super Bowl."
Still, Bob Sullivan, president of the Super Bowl host committee, isn't quite prepared to declare the event recession-proof.
"Nothing is immune from a steep economic decline," Sullivan says.
The deteriorating economy definitely hurt his fund-raising efforts. The committee had to raise $17 million, mainly through corporate sponsorships, to cover costs. When Sullivan approached major local home-builders about being sponsors last year, he recalls, "They said, 'What, are you reading the papers?'" (Home sales and home-building permits in metro Phoenix are projected to drop 30 percent in 2008.)
Pulte Homes finally came through as a sponsor, but the host committee was still $3 million short of its target a month ago.
It isn't now. The way the committee finally hit paydirt helps explain what drives the Super Bowl economy: insatiable demand. Sometimes it comes sooner, sometimes later; but it always seems to come.
Each year, the NFL gives the local host committee about 750 game tickets. Sullivan's group used theirs primarily for fund-raising. It put together packages ranging in price from $4,000 (for a ticket, a parking pass and access to pregame and postgame hospitality areas) to $100,000 (for 10 tickets and a table for 10 at the Big Ticket gala, where Jay Leno will provide the entertainment).
The committee still had 15 packages for sale … until last week. Then on Tuesday, two days following the NFC conference championship game, a big swarm of orders started coming in from the Big Apple. The packages sold out in, well, a New York minute. The host committee put another 30 packages on sale Saturday, nearly half of which had been sold by Monday.
The Giants' presence clinched a robust Super Bowl LXII for many business interests. The team plays in America's biggest market and draws many moneyed fans. According to Nielsen, 40 percent of Giants fans have household incomes over $100,000. Regardless of the economy, they aren't starving -- except for championships.
Who wouldn't pay a premium to see Pamela Anderson in a flag football game?
For scores of New York-area execs, scoring Super Bowl tickets is the ultimate win-win proposition. They get to fly to sunny Arizona in the dead of winter to root for Eli Manning & Co., and they also get to generate goodwill for their companies by inviting prized clients along.
At TSE Sports & Entertainment, which sells Super Bowl tickets-and-travel packages, "the phone started ringing off the hook after the Packers game," says Robert Tuchman, the firm's president. Those calls weren't just coming from midtown Manhattan. Many were from companies based elsewhere, wanting to be sure their New York offices were stocked with corporate America's most valuable late-January currency: Super Bowl tickets. Tuchman estimates he'll sell 1,000 packages, typically priced at $6,000, which about equals last year's total.
Businesses tied to the Super Bowl are actually quite fortunate that Lawrence Tynes made that overtime kick to win the game for the Giants. Sure, Packers fans would have swarmed from the frozen tundra to the Arizona desert, too. But let's face it: Some 57 Fortune 500 companies are headquartered in New York; there are nine in Wisconsin. The Cheeseheads more likely would be angling for nosebleed seats than VIP packages.
The Super Bowl economy is also fortunate there's a writers strike still on in Hollywood. As hit series such as "Desperate Housewives" have been put on hold for lack of new episodes, advertisers have fewer highly watched vehicles through which to hawk their products. Even the next big blockbuster TV event following the Super Bowl -- the Acadamy Awards, currently scheduled for Feb. 24 -- could be scuttled by the strike.
So advertisers who might have been tightening their belts in this dicey economy and balking at Fox's record $2.7 million asking price for 30-second spots instead are paying up.
"The Super Bowl is more important than ever this year to advertisers," says Patti Williams, a marketing professor at the University of Pennsylvania's Wharton School. "There's very little TV you can count on, and the Super Bowl is something you can count on."
Ironically, while the unbeaten Patriots are the primary lure for a possible record-setting TV audience, New England isn't attracting nearly as many of its backers to Arizona as the Giants are. Maybe Patriots fans are blasé, since this is the team's fourth Super Bowl appearance of the decade. Maybe people who traveled to the Red Sox's post-season games last fall are tapped out. In any event, says Nick Giammusso, president of VIPSuperBowlTix.com, "The corporate business out of New York has been 10 times, 20 times higher than Boston."
To the Williamsville, N.Y., tickets-and-travel packager, the explanation for the enduringly robust Super Bowl economy is simple: "The rich are still rich, and they're not afraid to spend."