We Uncovered the Illegal Scam Happening at Every Stadium

An Alleged Illegal Scheme at Madison Square Garden [0:00]

• The video begins by framing the high cost of food and drinks at sporting events as part of an "illegal scheme perpetrated by billionaires."
• The narrator, at Madison Square Garden, aims to catalog and quantify how badly consumers are being overcharged.
• The core argument is that fans don't have to accept these prices because there's something "felonious" about them.

"But what if I told you this slice and this beer and these hot dogs are all part of an illegal scheme perpetrated by billionaires?"

Ron Gordon's 1978 Hot Dog War [0:38]

• The narrative shifts to a story from 1978 about Ron Gordon, a high school teacher who waged a "one-man war against the price of a hot dog."
• Gordon was fed up with unprecedented inflation and skyrocketing prices.
• He believed that something lost since his time held the secret to bringing down the cost of being a sports fan.

"And I think part of my obsession was this. There was something we've lost since Ron's day that held the secret for how we can bring down the skyrocketing cost of being a sports fan today."

The Candlestick Park Nickel Hike [1:30]

• In 1978, Ron Gordon learned about a nickel price increase for hot dogs at San Francisco's Candlestick Park, due to a new health ordinance requiring vendors to wrap wieners.
• The price increase would bring the total cost to 75 cents.
• Ron believed the concessionaire, Stevens Company, and owner Bob Wurri were overcharging Giants fans.

"The reason, a new health ordinance mandating that vendors wrap their wieners. That nickel would pay for the labor and bring the total cost to 75."

Gordon's Investigation and Public Stand [2:08]

• Ron spent approximately 300 hours investigating the price hike.
• He discovered that Stevens Company would recoup its costs and significantly more, estimating total revenue of $91,000, which is over $400,000 in today's money.
• Ron presented his findings to San Francisco's park and wreck board, even demonstrating his ability to wrap hot dogs faster than the park's stated efficiency.

"What Ron discovered was that Stevens would recoup their cost and a whole lot more. The total amount of money which they take in would be $91,000, which is an awful lot of money. There's no question."

The Public Funding and Tax Breaks for Stadiums [3:38]

• The video points out that many stadiums are built using public money and continue to receive taxpayer funds by claiming to be a "public good."
• Madison Square Garden, for instance, receives a property tax break costing New York hundreds of millions of dollars.
• Most stadiums are exempt from property taxes, yet the return for taxpayers is often minimal, with studies showing they are a "terrible deal" for local economies.

"It started with who actually owns and pays for stadiums. In Ron's case, Candlestick Stadium was built using public money."

Legal Avenues for Consumer Protection [5:09]

• A lawyer and former government official reveals that charging excessively for hot dogs in stadiums is already illegal under "prohibition on unfair practices" laws present in most states.
• Stadiums effectively hold monopoly power over consumers, who have limited choices.
• These laws can be used by state attorneys general or the federal government to lower prices, similar to how they're used for price gouging during natural disasters.

"Charging too much for a hot dog in a stadium is already illegal under the prohibition on unfair practices, which most states already have on the books."

Complacency and Potential Solutions [5:59]

• Regulators and attorneys general have become "complacent" and accustomed to high stadium prices, lacking the "imagination" or "will" to enforce existing laws.
• State agencies could write rules explicitly banning price gouging at concession stands.
• A more direct solution involves leveraging the public-private partnerships and the financial risks stadiums face, such as the renewal of special zoning permits and tax exemptions.

"Regulators and attorneys general have grown complacent. They've gotten used to the high prices in stadiums just like we have."

International Comparisons and Street Pricing [7:02]

• The video contrasts the US approach with other countries, noting that sports price gouging is less acceptable elsewhere.
• In 2016, Liverpool fans protested high ticket prices by walking out of a match.
• "Street pricing," where the price inside a venue matches the price outside, is proposed as a solution and has been implemented in Portland's International Airport.

"We seem to be one of the few countries, in fact, that finds sports price gouging acceptable."

Ron Gordon's Persistent Fight and Legacy [9:09]

• When the parks board didn't take him seriously, Ron Gordon took his fight to the press, national media, and wrote to many officials, even receiving a letter from the White House.
• Sports Illustrated, The Wall Street Journal, and CBS National News covered his crusade.
• His one-man campaign ultimately led the San Francisco park and recreation board to rule in his favor in 1978.

"They brush you off. What makes you want to keep going?" "Cuz I was right. They're doing something wrong."

The Cost of Justice and Lingering Issues [10:10]

• 47 years later, the narrator's total bill at Madison Square Garden was $638.53 for two cheap tickets and food.
• Ron Gordon spent over $3,000 (equivalent to $14,000 today) on phone bills fighting for fair prices, viewing it as an "investment in justice," though it left him broke and he hasn't attended a game in 30 years.
• The video concludes by emphasizing that while officials might pretend solutions aren't possible, citizens have the power to demand change through public pressure and persistent pursuit of justice.

"The more I knew about it and the less other people did about it, the more it became my responsibility."