I got the folllowing email from the Texans this afternoon, and I'm once again baffled by Bob McNair's complete lack of personal and organizational awareness. How this man has amassed more than $1 billion is completely beyond my comprehension. The retort I sent to the Texans is after the jump. Not holding my breath for a response...
When making your initial payment for your season tickets you signed up for the automatic payment plan for your seats. Your account is scheduled to be charged for the 2nd installment of 25% Thursday, March 17, 2011. By signing up for the payment plan you will not receive another invoice and the credit/debit card you used will be charged on the remaining due dates of April 18 and May 17.
As you are probably aware, the negotiations between the NFL and the players union for a new Collective Bargaining Agreement broke down on Friday, March 11, and the current CBA has expired. The NFL and its clubs are committed to continuing negotiations and are confident that an agreement will be reached. We are hopeful that the negotiation process does not disrupt the 2011 season and we are preparing for the season. We wanted to make sure you knew our policies regarding season tickets in the event games are missed.
- In the event that we miss any games, season ticket holders can elect to receive a refund for the price of your tickets/parking for any games that we miss or receive credit for future games.
- If you pay in full by May 18, 2011 you will be eligible to receive interest on your refund. Simple interest will be paid at the annual rate of 1% and will be calculated for the period beginning with the first game missed through the date the refund is processed.
If you have any questions regarding these policies or would like to adjust your automatic payment plan please give our office a call at 832-667-2002.
Thank you for your support.
Houston Texans Ticket Office
Date: Tue, Mar 15, 2011 at 1:59 PM
Subject: RE: Houston Texans Season Ticket Account Information
To: Houston Texans <TICKETING@houstontexans.com>
Dear Texans Ticketing Employee Who Will Probably Never Read This Email,
Let me just make sure I fully understand Mr. McNair’s stance on this issue.
First, I pay the Texans up-front, 6 months in advance for games that may or may not ever be played. Mr. McNair is then free to invest my money at market rates (let’s say conservatively he can get 4%). Then in the event that the games are not played, Mr. McNair will refund my money that I paid him 6 month prior (the money that he has been making 4% on) with 1% of annualized interest…but that interest is only calculated from the date of the cancelled game until you refund my money. Now let’s assume that the Texans operate like any other normal business and send the refund checks out within 30 days. So by not playing a game, Mr. McNair makes 4% for 6 months on every ticket bought by his season ticket holders, and he then refunds their money with 1% interest for 1 month. This is what we in the financial world would refer to as an arbitrage opportunity…guaranteed profit with zero risk.
Bravo, Mr. McNair! You’ve found yet another way to siphon even more money off your fans without even playing a game. You should thank God every day that you own an NFL franchise and not a MLB, NBA, or (God forbid) an NHL franchise…because with your team’s record over the years, combined with insulting "offers" such as this for your highest-paying customers, the never-before-seen popularity of the NFL is the only thing keeping your franchise from being completely irrelevant.
Please feel free to contact me to discuss this matter further. Thank you.