Sometimes charging less means you make more.
“There’s probably some rich guy out there who would be willing to pay $10,000 to see a Xavier basketball game, especially if Jay Wright came out of retirement for the Muskies to play a Villanova team with half the New York Knicks’ players. Now let’s say that the person who is willing to pay the second most to see the Muskies play Jay Wright’s Villanova would pay $6,000. If you can only charge one price for all seats, then you can sell one seat for $10,000 total (the rich guy) or you can sell two seats for $12,000 total ($6,000 for the rich guy and $6,000 for the other guy). Because you’re charging the same price for all seats (because we’re assuming the seats are all interchangeable), every time you want to sell an additional ticket you need to lower the price further, not just for the additional seat but also for every single seat you would have sold at the higher price.”
https://econsquawk.substack.com/p/college-sports-is-now-just-a-monopoly