Cubs increase ticket prices

As expected, the Cubs increased their ticket prices for 2008 games. Is this really a surprise to anyone? Cub game ticket prices are like college tuition prices; they go up every year because they can. The only reason both don't go up every single week like gas prices is that unlike gas, the seats are available far in advance.

Are these prices fair? If the seats will in fact be sold, then I would say that they are fair prices, in terms of supply and demand. There are so many Cub fans in and out of town that any seat in this small park is at a premium. "Going to the Cub game" remains an experience apart from watching the Cub game.

That said, it has not been true for years that "there is not a bad seat in the house." No longer true; with the addition of the skyboxes in the 1990s, some terrace reserve seats in the lower deck have a very poor view of the outfield. There is no way to track fly balls or popups. You just have to watch where the defenders are running to, to get a feel for where the ball is.

The Tribune is still in the process of being sold to Sam Zell- my understanding is that the deal is not yet finished. After that, Zell wishes to sell the team, mbeing quoted as saying that he is not interested in being owner of the team because he does not understand the business. I saw an incredible profile of Zell on the newsstand (yes, pinching pennies these days so didn't actually buy it) in which Zell negotiates a real estate deal with some rich sheiks to make a ridiculous complex in Abu Dhabi. I think Zell understands complex transactions that most of us really could never wrap our minds around, no matter how long we tried. So why doesn't Zell understand a business in which A) he owns a commodity that most Chicagoans want and B) he is part of a nationwide monopoly; C) despite their relative incompetence, the current owners are easily able to raise prices at will, and D) other businesses like it (there are only 31 others and only 5 are in equal size markets) have appreciated hugely in value.

Maybe the truth is somewhere in D; Zell must think now is the time to sell a baseball team, not buy one. Maybe he is right. He's the tycoon, not me. When I get a financial idea, it tends to be pessimistic before its time, but eventually accurate. I thought real estate was over-valued in 2003. No one else thought so until 2006. I thought stocks would fall before they eventually did. The point is, I think MLB franchises can still increase in value, and maybe double even from this point, before anyone loses money selling one (even the Rays).