Posted By:
Ted HoldenI have been trying to get more information from either the Massachusetts Lottery or the Boston Red Sox Organization on their justification of $17,000 for the value of the tickets offered.
I finally received word from a lottery employee, quoting the Red Sox Organization with the following methodology for calculating a ticket value of $17,000.
The Red Sox stated the number of games with the Yankees at Fenway for the next 10 years was 12 games per season, times 2 seats for a total over the 10 years of 240 tickets.
The seat value for 2008 was calculated at $45 per seat, which is the highest price for Grandstand seats. That give the 2008 tickets a value of $1,080.
The Red Sox assumed a 9% inflation rate per year resulting in the values per year as follows:
Year9% inflationCum. Total
2008 $1,080 $1,080
2009 $1,177 $2,257
2010 $1,283 $3,540
2011 $1,399 $4,939
2012 $1,525 $6,463
2013 $1,662 $8,125
2014 $1,811 $9,936
2015 $1,974 $11,911
2016 $2,152 $14,063
2017 $2,346 $16,408
They rounded this to $17,000.
Please note that I do not agree with the assumptions made, I am just repeating what I was told.
Based on this information, the minimum opening bid is being dropped to $15,000.
Texas Ted