Simplistic made up example. STH pay $30/ticket for the whole season, right now individual buyers are getting them on the secondary market for $10. Fewer STH means less of those $10 tickets available, which the club prices at $20. That $20 can change to find the revenue maximizing point, but it's never going to hit $30 if the team is the same quality(which is assumed if STH decrease), so the team loses money. We also assume that the individual prices are never going to stoop so low as to hit $10(it's almost certainly better for revenue to have fewer people paying $20), so the total number in paid attendance will never reach the amount from before the STH decrease. Couple points here: 1. You guys probably knew this, but season tickets are still priced per game. Our draft would always charge people on an average ticket price/per game, but I know some people who charge per ticket. Think your overall point there still stands, that they can be more reflexive in season if attendance starts to lag vs STHs who paid everything up front. 2. I'm curious on the actual breakeven point once you start pricing that low, factoring in the price of beer/concessions, potential memorabilia, and whatever value you want to assign to recruiting future fans. Seems to be the most purely profitable part of the experience for them is taking the 15 seconds to pour a beer they paid 80 cents for and having someone swipe their credit card for $12. Yeah there's a whole lot of complexity and pricing theory that we're bypassing in either direction. The people who would've paid $30 might be more willing to pay $10 if that's an option, there's a whole lot of dynamic profit maximizing/rent seeking changes you can do on different axes to minimize the downside. But to your larger point, if the team is uninspiring enough that season ticket holders are going down, you can be pretty confident that any changes made in response are defensive and hoping to minimize losses(to revenue, top line attendance, etc), so from a business standpoint it's unmistakably bad.