Chargers PSL Math Doesn’t Make Sense

Expect a price drop for Chargers PSLs at SoFi Stadium

The Los Angeles Chargers have been in the #sportsbiz news recently, mostly for the wrong reasons. Prime among those seasons is weak PSL sales for SoFi Stadium, opening next football season.

PSL revenue targets were reportedly lowered from $400 million to $150 million. Ouch.

What’s interesting to the Worldwide Reader is that Club seat PSL prices haven’t changed. Club PSLs were priced between $75,000 and $10,000 before projections were lowered. If the Reader’s readers were to call the Chargers’ sales line right this very moment, those same prices would be quoted.

The Reader did some good old-fashioned calculations, and the 13,000 Chargers Club PSLs — as currently offered — add up to about $320 million. Odd that a stadium with 62,000 PSLs to sell would have a $150 million overall sales projection, while just 13,000 of those seats would bring in double that number, if sold.

What this tells the reader is the Chargers have another shoe to drop. Club PSLs prices will get lowered at some point, in order to bring overall PSL revenue in line with the $150 million projection.

The Reader’s guess? If the Bolts turn things around and appear capable of making a deep playoff run, the team will drop the news of reduced Club PSL prices sometime in January. If the season continues on its oh-so-Chargerey path of bad luck, then the drop will come around Draft time, in the early Spring.

Why haven’t the Spanii dropped Club PSL prices already? Only they know.

The benefits of such a move would be the potential to move a few extra seats while people are into football season.

On the other hand, the drawbacks of announcing a Club PSL price drop are substantial. One is media ridicule, though the Reader supposes they should be used to that by now. Another is the refunding of some portion of already collected PSL revenue.

Of course, anything is possible in the sports business game. The Chargers could turn around their season, thaw the remaining icy ex-Chargers fans, and grab hold of a hunk of the L.A. football market. Perhaps they could sell enough of those pricey 13,000 to look respectable, thereby blowing past the reported $150 million overall PSL projection (which, by the way, the team itself has never confirmed).

More likely, Club PSL sales will continue to be tepid, and the team will make an adjustment shortly before 2020 season ticket and PSL payments are due on March 1, 2020. Once the Chargers sales team gets a chance to push Club PSLs at reduced prices, then folks will have a better idea whether the Chargers’ ticket sales struggles are as significant as they’ve been made out to be.

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