Economy May Be Lowering PSL Values

Real estate prices have been dropping, and now that's true for some of the most expensive real estate in South Philly.

These spots are only about a couple of square-feet and cost between $1,500 and $3,100.

We're talking, of course, about the personal seat licenses at Lincoln Financial Field, where fans have to pay the Eagles for the right to own your seat and then you buy your tickets on top of that.

But it appears that, like the housing market, the "PSLs" are losing value too.

Bernie Dagenais, editor of the Philadelphia Business Journal, and Anthony Gargano discussed the situation Friday morning on "Good Day Philadelphia."

How bad is the market for selling them?

"It used to be, about a year ago, that a seat license was about $4,700. And now it's going under $4,000 -- about $3,800 is what we're seeing now, about a 20 percent loss in value,"
Dagenais said.

Of course, there remains a long waiting list for season tickets.

"Well, you look at other investments, this hasn't gone down as much as some other investments. So, there certainly still is a secondary market," Dagenais said.

The PSLs remain commodities to buy and sell, and there are companies that have been formed around reselling these seats and licenses.

Despite the 20 percent drop, Dagenais said, "It will go up again, I'm sure. But there are investors who are saying that this overall has not been such a bad investment,"

Gargano said the drop in value didn't surprise him. He noted that reaction in Philadelphia was generally against PSLs from the beginning even though the Eagles haven't charged as much as teams in other markets.

The New York Yankees recently ran into trouble selling tickets for their new ballpark because they wanted, for example, $2,500 a ticket for front-row seats, Gargano said.

"They're just overpriced. And, in this economy, people can't justify it," Gargano said. "Even AIG can't justify paying $10,000 for a Yankee-Orioles game four seats."