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Will NY Jets Season Affect Their Stock Price?

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I know what you may be thinking, what stock is associated with the New York Jets? They are not a public company. But investors do have a ventured interest in the team. The investors are the fans. The stock are the PSLs and season tickets. What the Jets do on and off the field does affect what the PSLs will go for in the future. This is a make or break year for the Jets. The inaugural season at the New Meadowlands Stadium will decide if fans (investors) thought it was worth making an investment in the New York Jets, and if their PSL is worth keeping.

When the Jets and Giants offered up the PSLs, that was their IPO. They called it “an investment”. If they want to call it an investment, then let us call the PSLs and season tickets “stock”. Once the stock was offered to the public, you had an option of how much you wanted to pay for your investment in the team, or your seats. That initial price was set by the teams. As many are aware, the prices did come down as many fans did not want to pay the price the teams were asking for their IPO.

Some prices were slashed 50% while other seats had a flat price of the season ticket cost. A cost that has steadily increased over the years. Jets season ticket prices have gone up while some will say, the teams play has gone down. Only two AFC Championship game appearances in the past 12 years. Once fans paid the IPO, they had the opportunity to pay it all at once, over 5 years, or fifteen years. If you took the financing, you also paid interest. Since the financing was being offered by the Jets and not a bank, the Jets earned extra money (the interest) on that IPO. In other words, investors who financed paid more for the same seats than one who paid in full.

Those who would like to transfer their PSL to someone else must have approval before doing so. This is all in the PSL Agreement which every PSL owner has. Now if one is in the middle of payments and transfers the PSL to someone else. The remainder of the payments are due when the transfer to the new owner takes place. The only time this does not happen is if the transfer is made to a family member. So if Jim Smith sells his PSL to Bob Jones, Bob has to pay the remainder of the PSL in full, no more installments. It really is easier to sell a stock certificate. So if the team is doing badly and loses its value in the market, it may not be as easy to sell off a PSL.

There are websites out there where one can buy a PSL from current PSL holders. In many cases, some are not getting the return on their investment like they had hoped. From some I have talked to in Baltimore, the only time PSL holders made a profit on selling them was after the Ravens won the Super Bowl. Since that point, it has either been even money or not much of an investment. Many fans are not seeing the return the teams had promised. Then again, many are also keeping them to pass along and do not see them as an investment. Only a necessary evil to continue being a season ticket holder.

Now, many know stock gains or loses value depending on the company’s performance. Sames goes for sports. If a team does great, one can sell a PSL for greater value. If a team performs poorly, one may not get the price asked. This is where the Jets are at now. PSL holders can not sell their PSL until holding it for at least one year, this year. Next year, they can do with as they please. Now the Jets started the season great. Some who looked at the PSL as an investment may have though about selling it to make a profit. If they finish the year with Super Bowl hopes crushed, one may have to hold it and sink more money into it. Thus, holding it longer than ones wants.

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The Jets are a company that controls how well their stock performs. As long as the team is a playoof and Super Bowl contender every year, people will want those PSLs and pay to have them. If the Jets fall back to being the Jets everyone knows, then they will never sell them all. Theey still have yet to sell all their PSLs. They can not even sell out their non PSL seats. So their stock is not worth as much as they think it is. The Jets hold their own future in their hands. As long as the team performs, people will wants to attend the games.

As I have been noticing this year, their is a younger fan base than previous years. Many older fans opted out of the PSLs and there are many younger first time season ticket holders. Those who purchased their PSL should treat it like stock. You have a piece in the teams new stadium you helped to build it. The PSL holders are shareholders in the new stadium. They should have a voice as to what goes on, but don’t. Stockholders in a company get one vote per share f stock in most cases, same should go for PSL holders. If that money went to help fund the stadium, then they should have a say in what goes on.

The Jets will face the Steelers this Sunday. With wins over them, Chicago, and Buffalo they can still show they want to make the playoffs. They are just not the elite team they think they are. Two of their nine wins came against teams with winning records. Plus, four of their wins they just squeaked out. The defense has not been as good as last year and not as good as Rex Ryan keeps claiming. Even Joe Namath said on Michael Kay that the Jets are not as great as they think they are. All of these are factors in what fans decide to do in the future, especially next season.

So if the Jets do not make the right changes, then no new stock will be sold. Investors will not want to sink money into a team that is not a playoff contender. Investors will not want to spend their hard earned money in what is still a down economy to invest in a team that is not offering a return to the playoffs. Some may have a hard time even selling them in the secondary market, not able to offer more than what they paid for them. The Jets and PSL molders have a lot to think about when one can finally sell them off.

It all comes down to performance. Many fans will never give up their seats. If they never got rid of them in the 4-12 and 1-15 seasons, they never will. But some might still decide to get rid of them. Those are the ones who have to decide if the investment was worth the thousands. Some might incur a loss trying to sell them if the Jets do not turn around, at any point. I still would like to see the Jets win a Super Bowl in my lifetime. If they do, I am sure their stock will go up. But as of right now, their price is lower than when the season started. Their stock (PSL) price has dropped.