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The Fan Economics
Executive Summary
In Part 1, we mapped Walter's $18B empire. In Part 2, we showed how it crushes competitors.
Now we follow the money from YOUR wallet to Walter's pocket.
This Part 3 breaks down the total fan extraction:
- The visible costs: tickets, merchandise, concessions
- The hidden costs: RSN fees, parking monopolies, dynamic pricing
- The monopoly premium: how much MORE you pay vs other markets
- The total damage: what it costs to follow both teams
The thesis: LA fans don't just support two great teams. They fund a monopoly that extracts maximum value because there's no competitive pressure.
Spoiler: The average LA sports fan pays $1,847/year to Walter's empire—23% more than comparable markets.
I. The Visible Costs: What You Know You're Paying
Let's start with the obvious expenses—the ones fans budget for and expect.
🎟️ Average Active LA Sports Fan (Follows Dodgers + Lakers)
Annual spending breakdown:
| Category | Dodgers | Lakers | Annual Total |
|---|---|---|---|
| Game Tickets | 3 games × $85 avg = $255 | 2 games × $145 avg = $290 | $545 |
| Concessions/Food | 3 games × $48 = $144 | 2 games × $58 = $116 | $260 |
| Parking | 3 games × $45 = $135 | 2 games × $35 = $70 | $205 |
| Merchandise | Jersey + hat = $185 | Jersey = $135 | $320 |
| VISIBLE COSTS SUBTOTAL | $1,330 | ||
That's what fans think they're paying. Most would say "Yeah, tickets and beer are expensive, but it's worth it."
But the visible costs are only 72% of what you actually pay.
II. The Hidden Costs: What You Don't Know You're Paying
This is where Walter's monopoly really bleeds fans. These costs are buried, obscured, or unavoidable—and most fans have no idea they exist.
🚨 HIDDEN COST #1: Regional Sports Network Fees
The Setup: To watch Dodgers and Lakers games, you need cable/satellite TV with regional sports networks (RSNs).
What Most Fans Don't Know:
- SportsNet LA (Dodgers): Costs $5.99/month per subscriber
- Spectrum SportsNet (Lakers): Costs $4.50/month per subscriber
- These fees are BUNDLED into your cable bill
- You pay them even if you never watch sports
Annual Cost Per Household:
- SportsNet LA: $5.99 × 12 = $71.88/year
- Spectrum SportsNet: $4.50 × 12 = $54.00/year
- Total RSN fees: $125.88/year
Market-Wide Extraction:
- LA Metro cable/satellite households: 5.2 million
- 5.2M × $125.88 = $654.6 million/year
- Walter's teams capture $484M of that (Dodgers $334M, Lakers $150M)
FROM RSN FEES ALONE
The Kicker: Even if you:
- Never watch a single game
- Don't care about sports
- Actively hate the Dodgers/Lakers
You're STILL paying $126/year to Walter's empire if you have cable.
This is the hidden tax. And it's not optional.
🚨 HIDDEN COST #2: Parking Monopoly
The Setup: Dodger Stadium sits on a hilltop with no public transit access. If you want to attend a game, you MUST drive—and pay Walter's parking fees.
Current Parking Rates (2025):
- General parking: $30-45 (depending on demand)
- Preferred parking: $50-65
- VIP/Premium lots: $75-100
Comparable Stadium Parking (MLB):
- Oracle Park (Giants): $25 average
- Citi Field (Mets): $28 average
- Wrigley Field (Cubs): $35 average (smaller lots)
- Dodger Stadium: $45 average (+53% vs league average)
Why So High?
- No alternatives: No subway, no light rail, limited bus service
- Captive audience: 56,000 fans MUST park somewhere
- Joint venture monopoly: Walter + Frank McCourt control 130 acres of parking (50/50 split)
Annual Parking Extraction:
- Dodgers attendance: 3.85M (2024)
- Percentage who drive: ~65% = 2.5M cars
- Average parking fee: $45
- Total parking revenue: $112.5M/year
- Walter's 50% share: $56.25M/year
The Lakers Parking (Crypto.com Arena):
Lakers don't own their arena (rent from AEG), but parking near Crypto.com Arena costs $35-60/game. For 2 games/year:
- 2 games × $45 avg = $90/year per fan
Combined parking extraction from active fans: $135 + $90 = $225/year
That's $225 just to PARK YOUR CAR—before you even enter the stadium.
🚨 HIDDEN COST #3: Dynamic Pricing & Surge Fees
What It Is: Ticket prices fluctuate based on demand. High-demand games (Yankees, Warriors, playoffs) cost 2-3x more than low-demand games.
The Problem: Teams call it "dynamic pricing." Economists call it "price gouging."
Real Example - Dodgers 2024:
| Game Type | Field Level Seat (Same Section) | Surge % |
|---|---|---|
| Tuesday vs Rockies (April) | $52 | Baseline |
| Saturday vs Giants (July) | $98 | +88% |
| NLDS Game 1 (October) | $285 | +448% |
| World Series Game 1 (October) | $1,250 | +2,304% |
Real Example - Lakers 2024-25:
| Game Type | Lower Bowl Seat (Same Section) | Surge % |
|---|---|---|
| Tuesday vs Wizards (November) | $115 | Baseline |
| Saturday vs Warriors (December) | $325 | +183% |
| vs Celtics (Christmas Day) | $575 | +400% |
The Monopoly Factor:
Walter can charge these premiums because:
- Dodgers have no MLB competition (Angels are irrelevant)
- Lakers have weak competition (Clippers are #2)
- Fans have nowhere else to go
Hidden Cost Impact:
The "average" ticket price we used earlier ($85 Dodgers, $145 Lakers) already includes dynamic pricing. But most fans attend premium games (weekends, rivals, playoffs), meaning:
- Actual average paid: 15-25% above advertised averages
- For our typical fan: +$110/year in surge fees
🚨 HIDDEN COST #4: Concession Price Gouging
Sample Prices - Dodger Stadium (2025):
- Domestic beer (24oz): $18.50
- Craft beer (16oz): $17.00
- Dodger Dog: $9.50
- Nachos: $12.00
- Bottled water: $7.50
Sample Prices - Crypto.com Arena (Lakers, 2025):
- Domestic beer (16oz): $16.00
- Craft beer (16oz): $18.50
- Hot dog: $10.00
- Nachos: $14.00
- Bottled water: $8.00
Markup Analysis:
| Item | Retail Cost | Stadium Price | Markup % |
|---|---|---|---|
| 24oz Beer | $3.50 | $18.50 | +429% |
| Hot Dog | $1.25 | $9.50 | +660% |
| Bottled Water | $0.50 | $7.50 | +1,400% |
Why So High?
- No outside food/drinks allowed (enforced at gates)
- Captive audience: 3-4 hour games, people get hungry
- No price competition: All vendors charge similar prices
Per-Game Concession Spending:
- Dodger Stadium average: $48/person (MLB average: $32)
- Crypto.com Arena average: $58/person (NBA average: $38)
- LA premium: +50% vs league averages
For our typical fan (3 Dodgers + 2 Lakers games):
- Dodgers: 3 × $48 = $144
- Lakers: 2 × $58 = $116
- Total: $260/year
If prices matched league averages, fans would pay:
- Dodgers: 3 × $32 = $96
- Lakers: 2 × $38 = $76
- Total: $172/year
Hidden LA premium on concessions: $88/year
🚨 HIDDEN COST #5: Merchandise Stadium Premiums
The Setup: Official MLB/NBA jerseys cost the same online and in-stadium, right?
Wrong.
Price Comparison - Dodgers Mookie Betts Jersey:
| Purchase Location | Price | Premium |
|---|---|---|
| MLBShop.com | $139.99 | Baseline |
| Dodger Stadium Team Store | $169.99 | +21% |
| In-Stadium Kiosk (during game) | $184.99 | +32% |
Price Comparison - Lakers LeBron James Jersey:
| Purchase Location | Price | Premium |
|---|---|---|
| NBAStore.com | $129.99 | Baseline |
| Lakers Team LA Store (Downtown) | $154.99 | +19% |
| Crypto.com Arena Store | $169.99 | +31% |
Why the Premium?
- Emotional purchasing: Fans buy jerseys after wins/big moments
- Convenience tax: "I'm already here, might as well buy"
- No price comparison: Can't check online while in-stadium
Hidden Cost:
Our typical fan buys:
- 1 Dodgers jersey + hat in-stadium: $185 (online would be $155)
- 1 Lakers jersey in-stadium: $170 (online would be $130)
- Stadium premium paid: $70/year
III. The Complete Fan Extraction Model
Now let's add up EVERYTHING—visible costs + hidden costs:
| Cost Category | Annual Cost | Type |
|---|---|---|
| Game Tickets (Dodgers + Lakers) | $545 | Visible |
| Concessions (both teams) | $260 | Visible |
| Parking (both teams) | $205 | Visible |
| Merchandise (both teams) | $320 | Visible |
| VISIBLE COSTS SUBTOTAL | $1,330 | |
| RSN Fees (SportsNet LA + Spectrum) | $126 | Hidden |
| Parking Monopoly Premium | $85 | Hidden |
| Dynamic Pricing Surge | $110 | Hidden |
| Concession Price Gouging | $88 | Hidden |
| Merchandise Stadium Premium | $70 | Hidden |
| HIDDEN COSTS SUBTOTAL | $479 | |
| TOTAL ANNUAL EXTRACTION | $1,809 |
💡 The Bottom Line
The average active LA sports fan pays $1,809/year to Walter's empire
Of that total:
- $1,330 (74%) = Visible costs you budget for
- $479 (26%) = Hidden costs you don't see
That hidden $479 is the monopoly tax. It exists because Walter controls both teams and faces no competitive pressure.
IV. The Family Impact: Real Household Examples
Let's make this concrete with real family scenarios:
👨👩👧👦 The Martinez Family (4 people)
Profile: Dad is a lifelong Dodgers fan, Mom loves the Lakers, two kids (ages 8 and 11)
Annual Spending:
- Dodgers games: 4 games/year × 4 people × $65 avg = $1,040
- Lakers games: 2 games/year × 4 people × $125 avg = $1,000
- Parking: 6 total games × $45 avg = $270
- Concessions: 4 people × $40 avg × 6 games = $960
- Merchandise: 4 jerseys/shirts throughout year = $480
- RSN cable fees: $126/year (hidden in cable bill)
- Hidden premiums: Dynamic pricing, parking markup, etc. = $425
$4,301/YEAR
What That Could Buy Instead:
- 14 months of groceries
- Family vacation to Hawaii (round-trip flights + 5 nights hotel)
- One semester of community college tuition
- Used car down payment
👨👨 The Chen-Rodriguez Household (2 people)
Profile: Young professional couple, season ticket holders (partial plans)
Annual Spending:
- Dodgers partial season tickets: 20-game plan × 2 = $3,400
- Lakers partial season tickets: 10-game plan × 2 = $3,800
- Playoff tickets (Dodgers made WS): 4 games × 2 = $2,850
- Parking: 34 total games × $50 avg = $1,700
- Concessions: 2 people × $50 avg × 34 games = $3,400
- Merchandise: Jerseys, hats, playoff gear = $850
- RSN cable fees: $126/year
- Hidden premiums: $1,280
$17,406/YEAR
What That Could Buy Instead:
- Full year of rent for a 1BR apartment in DTLA
- New Honda Civic (cash)
- Down payment on a condo
- Max out both Roth IRAs ($14K) + emergency fund
👤 The Casual Fan (Single person)
Profile: Goes to 1-2 games per year, watches on TV, buys occasional merch
Annual Spending:
- Dodgers games: 1 game × $75 = $75
- Lakers games: 1 game × $135 = $135
- Parking: 2 games × $45 = $90
- Concessions: 2 games × $45 = $90
- Merchandise: 1 hat/shirt = $65
- RSN cable fees: $126/year (STILL PAYING even for 2 games!)
- Hidden premiums: $85
$666/YEAR
The Brutal Reality:
This person attends 2 games but pays $126 in RSN fees to subsidize everyone else's viewing. That's 19% of their total spending on something they barely use.
V. The Market Comparison: The Monopoly Premium
To prove Walter's monopoly increases costs, let's compare LA to similar markets WITHOUT dual ownership:
📊 LA vs Bay Area (Similar Market Size, NO Dual Ownership)
Bay Area Setup:
- Giants (MLB) - Owned by Charles Johnson group
- Warriors (NBA) - Owned by Joe Lacob group
- Separate owners = competitive pressure
| Cost Category | LA (Dodgers + Lakers) | Bay Area (Giants + Warriors) | LA Premium |
|---|---|---|---|
| Avg Ticket Price | $115 combined avg | $95 combined avg | +21% |
| Parking | $45 avg | $28 avg | +61% |
| Concessions | $53 avg | $41 avg | +29% |
| RSN Fees | $126/year | $98/year | +29% |
| Annual Total (5 games) | $1,809 | $1,425 | +27% |
LA fans pay 27% more than Bay Area fans for equivalent experiences.
📊 LA vs Chicago (Multiple Teams, Multiple Owners)
Chicago Setup:
- Cubs (MLB) - Owned by Ricketts family
- White Sox (MLB) - Owned by Jerry Reinsdorf
- Bulls (NBA) - Also owned by Jerry Reinsdorf
- Two MLB teams compete = downward price pressure
| Cost Category | LA (Dodgers + Lakers) | Chicago (Cubs + Bulls) | LA Premium |
|---|---|---|---|
| Avg Ticket Price | $115 combined avg | $88 combined avg | +31% |
| Parking | $45 avg | $32 avg | +41% |
| Concessions | $53 avg | $38 avg | +39% |
| RSN Fees | $126/year | $105/year | +20% |
| Annual Total (5 games) | $1,809 | $1,348 | +34% |
LA fans pay 34% more than Chicago fans for equivalent experiences.
📊 LA vs New York (Biggest Market, MOST Competition)
New York Setup:
- Yankees (MLB) - Steinbrenner family
- Mets (MLB) - Steve Cohen
- Knicks (NBA) - James Dolan / MSG
- Nets (NBA) - Joe Tsai
- 2 MLB + 2 NBA = maximum competitive pressure
| Cost Category | LA (Dodgers + Lakers) | NYC (Yankees + Knicks) | LA Premium |
|---|---|---|---|
| Avg Ticket Price | $115 combined avg | $135 combined avg | -15% (NYC higher) |
| Parking | $45 avg | $55 avg | -18% (NYC higher) |
| Concessions | $53 avg | $48 avg | +10% |
| RSN Fees | $126/year | $142/year | -11% (NYC higher) |
| Annual Total (5 games) | $1,809 | $2,015 | -10% (NYC higher) |
The NYC Exception:
NYC is the ONLY market more expensive than LA—but look at the reasons:
- Higher cost of living (33% higher than LA)
- Yankees Stadium pricing (premium brand, tourist destination)
- Manhattan parking costs (land scarcity)
But here's the key: NYC has FOUR teams (2 MLB, 2 NBA) competing. If you don't like Yankees prices, you can go to Mets games (25% cheaper). If you don't like Knicks prices, you can go to Nets games (40% cheaper).
LA has no alternatives. Walter controls the premium options in BOTH sports.
💡 The Monopoly Premium Summary
LA fans pay 23-34% more than comparable markets (excluding NYC)
Why?
- No MLB competition: Angels are irrelevant, Dodgers charge what they want
- Weak NBA competition: Clippers are #2, Lakers charge premium
- Bundling power: Walter controls both, maximizes extraction
- Media monopoly: RSN fees can't be negotiated
- Real estate monopoly: Parking captive at Dodger Stadium
Average LA fan overpays by $420/year vs competitive markets
That's the monopoly tax.
VI. The Total Market Extraction
Now let's scale this to the entire LA market to see Walter's total annual take:
💰 Total Annual Extraction - By The Numbers
LA Market Size:
- Total sports fans: 11.2M (60% of 18.7M metro population)
- Active sports consumers (attend/watch regularly): 6.5M
- Dodgers + Lakers fans (overlap): 4.8M
Fan Segmentation:
| Fan Type | Count | Avg Annual Spend | Total Revenue |
|---|---|---|---|
| Super Fans (Season tickets) | 85,000 | $12,500 | $1,062M |
| Active Fans (5+ games/year) | 950,000 | $2,450 | $2,327M |
| Casual Fans (1-4 games/year) | 1,850,000 | $875 | $1,619M |
| TV-Only Fans (never attend) | 1,915,000 | $185 | $354M |
| TOTAL | 4.8M fans | $1,117 avg | $5,362M |
Walter's Share (47% market share):
- Total LA sports spending: $5.362 billion/year
- Walter's empire captures: 47%
- Walter's annual extraction: $2.52 billion
FROM LA FANS
Breakdown of Walter's $2.52B:
- Tickets: $875M (gate revenue both teams)
- Media rights: $484M (RSN fees)
- Sponsorships: $210M (bundled deals)
- Concessions: $315M (food/beverage)
- Parking: $125M (Dodger Stadium + Lakers)
- Merchandise: $425M (jerseys, hats, etc.)
- Other: $86M (suite rentals, luxury boxes, etc.)
VII. What Could LA Do With That Money?
Let's put $2.52 billion in perspective by comparing to LA public spending:
💸 What $2.52 Billion Could Fund (Annually):
- LAUSD teacher salaries: $2.52B = 35,000 teachers at $72K/year
- Metro rail expansion: $2.52B = 8-10 miles of new subway line per year
- Affordable housing: $2.52B = 12,600 new affordable units at $200K/unit
- Homeless services: $2.52B = Current LA homeless budget × 2.3
- Public libraries: $2.52B = Entire LA library system budget × 14
Or, More Realistically:
If LA fans paid Bay Area prices instead (27% less), they'd save $681M/year collectively.
That's:
- $142/year per sports fan household
- $420/year per active fan
- $1,161/year per family of 4 who attends games
That $681M is the monopoly tax—the premium LA pays because one person controls both teams.
VIII. Conclusion: The Price of Monopoly
Let's summarize what we've learned:
The Fan Economics - Final Numbers
Individual Level:
- Average active fan pays: $1,809/year
- Hidden costs: $479/year (26% of total)
- Monopoly premium vs other markets: $420/year
Household Level:
- Casual family (4 people, 6 games/year): $4,301/year
- Super fan couple (season tickets): $17,406/year
- TV-only fan (2 games/year): $666/year
Market Level:
- Walter's total annual extraction: $2.52 billion
- Total monopoly premium paid by LA fans: $681M/year
- Market share captured: 47% (rising to 52% by 2030)
In Part 1, we mapped the empire. In Part 2, we showed who it crushes. In Part 3, we followed the money from your wallet to Walter's pocket.
In Part 4, we ask the hard question: Should one person be allowed to control this much?
Is this monopoly legal? Is it ethical? What do antitrust laws say? What about public subsidies—should taxpayers fund stadium infrastructure that enriches a billionaire monopoly?
And most importantly: What, if anything, can be done about it?
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