Sports teams figured out that they could woo business types for insanely expensive tickets, but only if they had a private seating area.
A third, subtler way has to do with how those luxury seats are deductible as a business expense.
By law, when you’re deducting sports tickets, you are only supposed to deduct the average price of a ticket at that facility.
So raising the average ticket price makes those luxury suites more appealing to business buyers.
And FYI, one reason they are such a pain is that paid tax preparers like TurboTax or HR Block want them that way.