Essay on Rising Professional Sport Ticket Prices

Pro athletes over the world are paid millions of dollars to play a sport, while people like doctors or policemen are risking their lives everyday are not even close to these athletes. I feel that pro athletes shouldn't be making that much money because of the fact they aren't really worth millions of dollars more than the rest of us. Athletes do deserve to make a living. They inspire and entertain us and they work hard. But, there are plenty of people out there who have hazardous and difficult jobs, but no one's handing them a colossal sum of money. Sure, we love to watch them for entertainment, but the sports they are playing are unimportant or our community because they aren't helping us in anyway.

When fans of a sport team attend a local professional sporting event they are more likely to spend a lot of money on concessions and entertainment either in the stadium or at local restaurants or stores around the stadium (Coates and Humphreys, 2001). Owners lose money a lot of money when there are lockouts in their sport because owners make revenue off a variety of items such as luxury box sales, concessions, and parking (Woods, 2011). During the course of a season owners, restaurants, and local businesses can lose significant amounts of business and revenue because of lockouts. If there are less lockouts in the future of professional sports, they will greatly impact owners, the economy, and local

Sports teams are switching to a variable-pricing strategy for tickets so that they can get a higher profit on games with record attendance numbers. They feel the need to do so because the marginal costs, such as construction payment and players’ salaries, did not equal to the marginal revenue, since attendance was severely dropping. To pay for the marginal cost, the sports team needed to capitalize on things that they were sure of, like increasing attendances to games between major sporting rivals.

Professional sports has become one of the most popular industries in the world today. The media spends billions of dollars on advertisements and teams spend millions of dollars on professional athletes all for one reason, the fans. The fans ticket sales and merchandise purchases are what keeps all the sport teams around and prevents professional athletes from losing their jobs. There are three types of fans in the sports world, average fans, fanatics, and fair-weather fans.

The popularity of college sports has risen tremendously throughout the years amongst Americans. The passion to watch college basketball, football, baseball, and other sports has generated billions of dollars to the NCAA (National Collegiate Athletic Association) and to various athletic programs throughout America. Even though, colleges are raking in millions of dollars from their sports teams. “Last year 's National Collegiate Athletic Association ("NCAA") basketball tournament generated over $70 million in gross receipts” (Goldman).The NCAA prohibits payments, beyond educational scholarships, to athletes who are the source of these revenues. College athletes spend countless number of hours in their sport every day by attending long and tiresome practices, workout sessions, and film sessions whilst balancing their academics, but do not receive any payment for their efforts. Athletes are putting their lives and careers in danger during practices and games by being vulnerable to any type of injury that might end their careers, and many of these athletes are not provided any type of medical insurance to fund their injuries. Colleges need to realize that athletes often feel exploited because while they generate revenues, they are scrounging to meet their basic necessities and sacrificing their academic and professional careers. Many college athletes, professional lawyers, and sports analysts have taken various initiatives to help

While growing up in the state of Texas I was introduced to National Football League (NFL) at a very young age. Not only was I obsessed with great players like Emmitt Smith and Michael Irving, I had a more finical appreciation for the lucrativeness associated with the NFL. My young adulthood as well as my teenage years was spent playing and learning football with the aspirations of hopefully making it to the NFL. Unfortunately, my playing days ended with tryouts at Texas Tech University, but my love for the game has remained stagnant over the years even till this day. The NFL today is Americas most watched sports league and has taken the crown as the most lucrative and unique economic force in sports. Forbes offered approximations stating that on average, the NFL generates more than $6-9 billion a year in revenues alone. A third of the individual franchises in the league were appraised at over more than $1 billion while the other franchises average nine figures or higher. The NFL as an organization generates its revenues through a multitude of ways ranging from huge television contracts, in-stadium ticket sales, advertising ads paid for by sponsors and merchandise. Their business model unlike most other leagues, is centered on a hard salary cap on player contracts which provides cost certainty with its sponsors. In this paper, I will examine the economic and historical narrative associated with the growth of the NFL’s

Collective bargaining and unions have had a considerable effect on fans through professional sports. Because of these contract negotiations, athletes in recent years have benefited from an increasing share of ticket and television profits. Collective bargaining has resulted in strikes and lockouts and has disrupted several seasons through cancellation of games or even ending a season. The televising of sporting events has become the largest source of revenue

Proponents of subsidizing sports stadiums is a great decision because the economic impact it will have on the community is great for two main reasons. First, sports stadiums are massive construction projects. In fact, one could compare them to a medieval cathedral in their attempts to dominate a skyline and inspire pride in one’s city And, just like these cathedrals, they are very expensive, and massive building projects that would require many years of hard painstaking labor. For example, the proposed stadium for the Los Angeles Rams in Inglewood, California, was predicted to cost $3 billion and add 22,000 construction jobs to the economy of Los Angeles, California. Although construction jobs do eventually disappear once a stadium is constructed once the games begin, so does the massive consumer spending. For example, more than 3.5 million people saw the St. Louis Cardinals play at Busch Stadium in 2015.

To connect to the economic power that generates through the Super Bowl one must understand the historical pattern of revenue, ticket cost, and attendance the game exhibits in the week leading up to the actual showdown. The ticket prices of the Super Bowl are the main catalyst into understanding what every consumer is willing to spend and how much revenue the game brings to that city. In 1967, the first Super Bowl tickets were no higher than 12 dollars and the average price of a home was less than 25,000 dollars (Smith, 2012). In 2016, the average ticket price was 1,325 dollars making a big ascendance from 1967 (Depietro, 2017). Therefore, this also shows how the game has become more popular since it has come into existence and ticket prices

The value of entertainment in our society is arguable. We as a society constantly search for new ways to entertain ourselves; professional sports are a major contribution to our source of entertainment. If those who support athletes and their sports have no problem paying to see them,

In today’s world of big time professional sports there are the two major players and they are football represented by the National Football League (NFL) and baseball represented by Major League Baseball (MLB). Now there are other sports that the American public enjoys watching, however the argument generally boils down to which sport is the true favorite of the American people: baseball or football. In this paper I will attempt to examine both sports from several different angles to include attendance, television revenue, ticket costs, venues, salaries, entertainment value, and athlete perception. The goal of this exercise will be to determine, once and for all, which sport is the American

In the United States, new sports stadiums are commonly seen as a vital part of the redevelopment of a city having a great economic growth with the production of jobs and a positive income builder. After this, the owners of the pro sports teams with millions and millions of dollars of subsidies for the construction of new stadiums and arenas and expect these facilities to generate economic benefits exceeding these subsidies by large margins. However, a growing body of fact indicates that professional sports facilities, and the franchises they are home to, may not be engines of economic benefit anywhere claims Sachse, “. In reality, sports franchises typically account for a very small proportion of the total economic output of the cities in which they reside.” Some economical studies on the amount of income and employment in US cities find no evidence of positive economic benefits associated with past sports facility construction and some studies find that professional sports facilities and teams have a net negative economic impact on income and employment. It just shows that these results suggest that at best, professional sports teams and facilities provide non-pecuniary benefits like civic pride, and a greater sense of community, along with consumption benefits to those attending games and following the local team in the media; at worst, residents

Economic theory introduces us to four different types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly. Professional sports teams operate in an environment that is different than the typical business structure. The goal of this paper is to look at this industry, in particular the NFL, in an economics context and gain an understanding of the market structure of this unique industry. To do this I will discuss a brief history of the National Football League in the U.S. and how this organization is structured. I will also discuss typical market structures and type of

Why are tickets to sporting events so expensive? Ticket resale has been a concern to people who determine ticket price as well as the fans. If tickets are too expensive to begin with, then there will be a lot of unsold tickets. If tickets are very cheap, they will be purchased from the primary market quickly, and then sold on the secondary market at an increased price. Owners of sports teams and the league should allow the market to control ticket prices. Ticket prices are based off the demand of the game, team, and league which has resulted in tickets being sold at market value rather than face value. Ticket prices vary across the leagues as well as pricing strategies. Teams should continue to profit-maximize by charging various amounts for tickets in order to charge the closest amount to first-degree price discrimination.

The price that we pay is the value that we associate to any product, whether it is a good or service. It is the compensation given to a person or authority to purchase an object or service. The greater the value associated to the product, the greater the price.