Source: Fortune
Summary
New York City Mayor Zohran Mamdani and Gov. Kathy Hochul have been working to make the FIFA World Cup more accessible to working-class New Yorkers, offering 1,000 tickets at $50 each and a free watch party for 50,000 people. However, when the city released a limited run of 1,500 World Cup jerseys, they were quickly sold out and resold on eBay for up to $1,150, a 2,000% markup. This has raised questions about the city’s handling of the situation and its similarity to FIFA’s own pricing practices.
Our Reading
The strategy enters a familiar phase.
The city’s attempt to make the World Cup more accessible to working-class New Yorkers has been undermined by the resale market. The limited supply of jerseys created a high demand, which was exploited by resellers. This is the same dynamic that FIFA has been criticized for, and it’s ironic that the city has inadvertently created a similar situation. The numbers tell the story: 1,500 jerseys sold out quickly, and resold for up to $1,150. The city’s efforts to control the market have only relocated the cost to the consumers. The announcement sounds familiar: the city’s handling of the situation is reminiscent of FIFA’s own pricing practices.
One original observation: The city’s attempt to control the market has only created a new form of scarcity.
Author: Evan Null
