Friday, October 9, 2009

ESPN on the soft-dollar nature of Yankee Stadium

I can tell you from buyside experience, every time a game of golf (or whatever) is offered, the internal math (how many shares to trade with this guy....) is going on...

This is a truly marvelous look at Wall Street's affect on the absurd prices at The Stadium.

Now we're laying out eight grand on these tickets and you get paid on a 10 percent rate. That's 80 grand worth of commissions that needs to get done before you get back to even. And 80 grand of commissions at 2 cents a square, in the equity business, what's that, 4 million shares of stock? If this client does 4 million shares of stock with you, then you've made your investment back."

Second, the buy-side now believes the tickets cost so much that they'd feel a quid pro quo. Yankees games went from something small to something like a trip to the Masters. One buy-sider told me: "I've been offered really good seats a couple of times, but I haven't taken tickets from a broker in the new stadium. I'd feel like I owed the guy."

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