Wednesday, May 28, 2014 12:32 pm
You Can Now Buy Options On College Football Playoff Tickets: Which Teams Cost The Most?
How much confidence do you have in your favorite college football program being selected for the inaugural College Football Playoff this year? Wednesday, Forward Market Media and the College Football Playoff announced that fans now have the opportunity to reserve tickets for the event, based on which teams they believe will be chosen. The reservation system was used for the BCS national title game last year, as well as the Rose Bowl, Sugar Bowl and Orange Bowl.
So how does this work, in reality? It’s very similar to buying options in a financial market.
If you believe that Florida State is going to be selected as one of the four teams playing in the event, for a small reservation fee, you can buy the obligation (not right) to purchase tickets at the price you agree to ahead of time on the website. If FSU is selected, you buy the tickets at face value and either attend the game cheaply or sell them for profit to someone else. If FSU fails to qualify, your option expires and you only lose the reservation fee. So, looking at the above chart, which shows the option prices right now, you could theoretically wind up with tickets costing a few hundred dollars apiece and turn around and sell them for thousands of dollars. Or, you could wind up with nothing.
Here are the top twelve most expensive options that you can buy right now for the “400 Level Corner”. Surprisingly, Alabama is listed above Florida State at the moment.
Alabama - $194
Florida State - $145
Auburn - $110
Ohio State - $70
Oregon - $70
LSU - $70
Oklahoma - $69
Notre Dame - $45
Baylor - $45
South Carolina - $45
Stanford - $45
Michigan State - $45
It’ll be interesting to see the prices change as the season unfolds and teams jockey for position this fall. Will it be Alabama, Florida State, Auburn and Ohio State in the first playoff?