Increasing Ticket Prices
Jess Fonte
As time has progressed, ticket prices for professional sporting events have continued to increase year after year. However, I believe it’s important that people still decide to attend these events because if they don’t, total revenue for the teams will decrease, therefore causing a lower supply of tickets that will make it even harder to get a ticket. There is a very logical reason for these increases in ticket prices, specifically for the NFL during this time of year.
During playoffs, ticket prices rise even more due to the fact that more people want to attend these games. This causes the demand to increase, therefore causing the price that the consumers will need to pay in order to purchase these tickets to increase as well. Although this causes the cost to be higher, many people believe that attending a playoff game for a higher price ticket is completely worth the opportunity cost that they are paying. Yes the game could be viewed on TV at home, but the consumer does not receive as many benefits as they do when they physically attend the game.
Below is a graph that shows the rising ticket prices in the NFL from 2006 to 2016. The prices are continuing to rise after every year which means that the demand for these tickets are continuing to increase. It is beneficial that this continues to happen because if people stop attending the games, football as we know it will not be the same- and no one wants that. Therefore, this makes the cost of attending these expensive football games completely worth it.
Works Cited
"Average NFL ticket price 2006-2016 | Statistic." Statista. N.p., n.d. Web. 09 Jan. 2017.
Parker, Tim. "Why The Prices Of Sports Tickets Vary So Much." Investopedia. N.p., 04 Oct. 2012. Web. 09 Jan. 2017.
Although sporting event ticket prices are quite high, many people's willingness to pay for these events is also very high. The opportunity cost is greater than the real cost of the tickets, which is expected. It is not surprising that the demand and price is increasing over the years because of how much the willingness to pay for NFL tickets has increased.
ReplyDeleteI agree with Danya when she mentions the increasing demand sporting events have received in the near past. But I believe that the sports fans attend the game because their opportunity cost is lower than the real cost of the tickets. I feel like they would want to be there and, if they had a better opportunity somewhere else they would take it reducing the cost. Although it is expected inflation is really a problem to many fans as the additional costs often turn away many people from attending games.
ReplyDeleteI think a lot of people are going to continue to go to football games weather the ticket prices increase or not. However, for some people the opportunity cost is to high. Some people would rather sit in the comfort of their own home and watch football verses going to the game itself. The opportunity cost might be even higher for people who live in states where there is freezing cold temperatures and snow. I think there are other factors that influence peoples decisions when buying tickets. Such as: cost of ticket, weather, travel, and traveling cost. These factors all could affect peoples decisions about going to a football game or not.
ReplyDeleteI do think it is important when businesses and companies strategically plan their prices and products/services based on how their target market is feeling or acting at a certain time. Like during the playoffs, the target market for football is focusing on all the big games coming up, and as you said, they will be willing to pay more to see their favorite teams play. To really understand the craze of the playoffs, I think it would be interesting to know what else people will do or what outrageous prices people will pay for things just to have the complete playoff experience. Like how many people will wait in the cold to get into the stadium, or how long in advance people purchase tickets, or how much people will pay for food. Maybe some nearby restaurants next to a football stadium have specials or they increase their prices for playoff season. All these other factors that complete the experience of the football playoff can really tell you a lot about football fans and what they are willing to do to have the full football experience.
ReplyDeleteSports in general are taking a larger part of our society as we know it. These statistics you have on sports tickets are not surprising in the slightest. The demand of sports tickets are rising simply because people want to be at the games. They are not required to go to these games, and simply, the cost of some of the tickets are worth the admission. It's good to see because it gets people off of their couch and to different sporting events, which is always a good thing.
ReplyDeleteSports and more specifically football is starting to take over. With games now being playing in London, football is getting fan from over seas. This contributes to the increase in demand but on top of this, sports are just getting more popular. With the increase in ticket prices, the teams can use that money to buy better players. Paired with better players comes better teams. People will then be more inclined to watch sports if the teams are, in general, better and more talented. It would also be interesting to see how much ticket prices actually increase from regular season to the playoffs.
ReplyDeleteI agree with your statement about rising the ticket prices throughout these last couple of years. There are still going to be those die hard fans that will pay any amount of money to go support their favorite team play. I can relate to the in person game experience and it is totally different than watching a Packers game on TV. No matter how much they decide to rise the prices, someone is always going to be willing to pay for them. In my opinion, the opportunity cost is totally worth being able to see the game right in front of you.
ReplyDeleteSports in society has indeed increased over these years. The one sport that is most likely increasing at the fastest rate is football. The demand for these NFL teams to play in certain cities, as London has hosted many games, but now also Mexico City is started to host football games. As the demand increases, the more revenue each NFL team can get during their NFL season
ReplyDeleteAs sports get more and more popular ticket prices will continue to increase. Both in the NBA and the NFL, teams are starting to play in Europe and Mexico. This increases the global sensation of U.S. sports and creates more hype for every game. Going to a game is so much different than watching it on TV and even if the prices of ticket are increasing it still is worth it to go to the games.
ReplyDeleteThe higher the cost of the tickets in sporting events the more buzz it generates around the sport. This makes the sport no matter what it is more of a global sensation and can raise demand of the sport and it's ticket sales.
ReplyDeleteRegular "American" sports are expanding to Europe and other countries throughout the world. People in these countries have never seen this sensation in their life and they feel they need to cease the opportunity to watch the great sport of football, or basketball, or whatever the sport may be. This will increase the demand of tickets, allowing teams to increase the ticket prices because although it may cost more, it is still worth it to go see a sporting event of this venue.
ReplyDeleteThe demand for NFL tickets has been increasing which allows NFL teams to raise ticket prices. A prime example of this would be the Green Bay Packers as many people are on a list waiting to buy season tickets. The scarcity of these season tickets raise the value and thus makes people willing to pay more than ever before.
ReplyDeleteI do agree that prices have increased, but for a meaning. For the amount of people willing to pay the prices to attend these events, it is reasonable. There's a great competition within consumers which creates the cost to rise. Obviously with the experience of attending games, people receive more benefits as well. That is why I think the cost increasing isn't such a bad thing as it benefits many.
ReplyDeleteI agree with many of the comments that people have left regarding the increase in NFL tickets. It is very true that people are more willing to pay a higher price for a ticket to attend a game. This is because it is worth the opportunity cost to experience an event. I do not think that increasing the prices is a bad thing since the total revenue would go down if they decreased. Therefore, the price increase will not effect attendance since people will be willing to put money toward a ticket. This demand, is what increases these prices.
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