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Why Are Ticket Prices Too Low In The Sports Industry

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Sports economists believe ticket prices are too low because of a temporary disequilibrium. One reason is because low prices are a deliberate strategy of team owners. The sports teams are price takers. The percentage of a consumer's budget affects the elasticity of demand for tickets because the amount of money that a customer invests in a team (buying tickets), the team makes a percentage off that tickets and concessions and this money is considered revenues for the team. If there is ever a decrease in the consumer’s incomes, the teams may see a decline in attendance. Due to the income decrease, the demand curve will shift to the left causing both the equilibrium price and the equilibrium output of tickets to fall. For the teams to use the
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It is difficult to compete with basketball and football, as basketball is a shorter season and shorter game time. Football is almost “too big to fail” as it is America’s sport now and everyone wants a piece of that pie, especially Patriot football. Question twelve is a testament to how success and demand and skyrocket the price of a ticket. I am not speaking of the Nor’easter success, but the Red Sox, in which during their World Series winning 2007 season the difference between the cheapest ticket and the most expensive, dugout ticket was a difference of three thousand percent! The people don’t know the Nor’easters, so at best, 48% of the responders would pay 10% more between bleacher seats and club/dugout seats (Cespedes, 2009).

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Marketing jobs have opened for athletes more recently but have generated many prophecies for the economy and sporting teams. The economy is extremely impacted by the consumer spending that takes place during their visits. Tourists who come to games have to make themselves a livable space and live a memorable moment. Sports tourism increases local businesses' income, transportation, hotels, and restaurants (Tap). When a city hosts an event, fans need a place to stay, eat, and activities to do.

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Even better, people would love to attend professional games with their friends and families. Unfortunately, most people are unable to go because of how expensive tickets are to watch just one game. Seats for one person can get up to 10,000 dollars, now imagine how much money it would cost if you were going with your family. Prices should be lower so that more people can attend. If this was the case, sports can be enjoyed by most people and they could go to games personally, and maybe more than once in their

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