On Opening Day, New Report Urges “Street Pricing” Policies to Combat Price Gouging at Stadiums and Airports

On Opening Day, New Report Urges "Street Pricing" Policies to Combat Price Gouging at Stadiums and Airports

As pitchers take the mound on Opening Day, the average price of admission for sporting events has increased by more than 12% in the last year and is increasingly unaffordable for families. Today, as Major League Baseball celebrates Opening Day, Groundwork Collaborative released a new policy brief, “Shakedown at the Snack Counter: The Case for Street Pricing,” urging lawmakers to implement “street pricing” policies in stadiums and airports as costs continue to rise for families attending a ballgame or taking a flight to visit family. Stadiums and airports often add egregious markups to the price of concessions, even though they receive billions in public funding and, in the case of sports teams, have billionaire owners, who gouge Americans at every turn.

• Read the Policy Brief
• 73% of Americans support reining in prices for concessions at publicly-funded venues, according to new polling
• Read Alex Jacquez’s Opening Day Op-Ed in MSNBC

The report’s co-authors Emily DiVito, Alex Jacquez, and Elizabeth Pancotti propose street pricing policies that would require vendors inside stadiums and airports to charge the same prices they would outside the venue, a policy that has been successfully implemented at some venues across the country.

“When families visit ballparks or travel through airports, they shouldn’t be held hostage by price gougers,” said Alex Jacquez, Chief of Policy and Advocacy at Groundwork Collaborative and a co-author of the report. “Taxpayer dollars finance these venues, many of which are owned by billionaires or wealthy investment groups. They shouldn’t be subjected to outrageous prices by corporate vendors benefitting from public subsidies.”

To combat this price gouging, the authors propose:

• Implementing strict street pricing policies for any airport project that receives funding from the Department of Transportation.
• Classifying violations of that same street pricing policy for all vendors at other large venues, such as stadiums, as an Unfair, Deceptive, or Abusive Act or Practice (UDAAP).
• Establishing clear guidelines for determining off-venue price baselines. This includes ensuring that stadium and airport prices are comparable to businesses near stadiums and airports and maintain the same portion and quality standards as their off-venue counterparts.

A federal street pricing policy wouldn’t just save consumers money – it would also be good for business. Lower concession prices have led to higher sales, as customers are more willing and able to spend when they don’t feel gouged:

• Portland International Airport (PDX) & Salt Lake City Airport (SLC) have strict prohibitions on concession surcharges and have seen an increase in sales since their policies have been implemented.
• In the sports world, Mercedes-Benz Stadium, home to the Atlanta Falcons and Atlanta United FC, has led the charge toward fair pricing, offering concessions 50% cheaper than what was charged in their previous stadium, and has seen a 30% increase in total transactions.

Email press@groundworkcollaborative.org to speak with the report’s authors. Read the full report here.

ADDITIONAL KEY FINDINGS

• The average cost to take a family of four to a ballgame this year is $240. Taking in a National Hockey League game will set a family back an average of $430, and a National Football League game a whopping $631.
• Most major U.S. airports have some form of so-called “street pricing plus” policy to curb price gouging, but these policies still give vendors the discretion to set their own prices and allow markups as high as 18% above off-airport prices. Stadiums, meanwhile, have no such regulations.
• An exclusive poll found that 73% of voters – including 78% of Independents and 76% of Republicans – support policies that restrict vendors from overcharging for concessions at venues receiving subsidies.