Lower Ticket Prices?

Discussion in 'The Business of Hockey' started by MontrealCruiser_83*, Feb 4, 2005.

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  1. When a new CBA get's put into place, the most obvious change will be the scale of money thrown around in the NHL. So with owners hoping to severly cut player expenses, can we, the fans, expect ticket prices to be cut aswell? I mean, if the owners can pull off a deal like the one proposed feb. 2nd (or a similar offer) and save millions, it would only be right to give back to the real victims of the situation. I wouldn't find it very fair for them to be able to cut expenses by almost half yet to still be able to collect ticket profits from the previous CBA era.

    The owners can't have the cake and eat it too.
     
  2. Motown Beatdown

    Motown Beatdown Need a slump buster

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    Answer is no. Look at it this way, when it's all said and done the the players and owners will each get a certain percentage of revenue. The more revenue equals more money for each side. So we the fans will take it once again. Now if attendance is off in certain cities ticket cost will drop only because of demand. But when sales are still strong, dont expect the owners to give away money.
     
  3. Levitate

    Levitate Registered User

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    yeah the CBA isn't going to have any direct effect on ticket prices. i can imagine seeing some teams offering reduced ticket prices for this season, or maybe even knock some off season ticket prices for next season, just as an attempt to get fans back...but overall, they'll just end up charging as much as possible and still fill their rinks

    there's no real 'we'll pass the savings on to you' type of thing in this situation
     
  4. krandor

    krandor Registered User

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    If there is hockey this season, I think there will be some price reductions. Not because of the CBA, but because after this is over and the PR hit they are going to take, they are going to need to get fans back to the areana and lower prices for this year will be the best bet in many places. Then next year they will probably go back to normal.
     
  5. Steve L*

    Steve L* Registered User

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    I would imagine theyd have to offer some fans incentives to get them back to watching hockey. Obviously some teams will sell out anyway but others will have to lower prices and some teams already have.
     
  6. HckyFght*

    HckyFght* Guest

    Of course they will lower prices, they've said ticket prices are a big issue dozens of times. Look for reductions of 10-20%.
    -HckyFght!
     
  7. John Flyers Fan

    John Flyers Fan Registered User

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    If you think that will happen on a majority of NHL cities for anything more than the short-term I think you're delusional. As a season ticket holder, I'd love you to be correct, but I don't see it.
     
  8. Volcanologist

    Volcanologist Used Register

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    Hahahaha....

    Dream on.

    Ticket prices aren't going down. This is about the owners making more money, not the fans.
     
  9. transplant99

    transplant99 Registered User

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    Several teams already have lowered prices in the last 2 years.

    Thats just a fact.
     
  10. MarkZackKarl

    MarkZackKarl Registered User

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    Exactly. The only way that the owners reduce ticket prices is if the demand in various markets goes down. This will probably coincide because of the lockout but msinformed fans will accredit it to the owners being nice, but it will simply be in relation to the alienated fan base staying away from games.

    And imagine if the NHL has the gall to cancel the season? Good bye season ticket base!
     
  11. John Flyers Fan

    John Flyers Fan Registered User

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    Not teams that were drawing big crowds on a regular basis.
     
  12. triggrman

    triggrman Registered User

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    I might not lower the cost but it might keep if from growing at the rate it has had grow at over the last 10 years.
     
  13. transplant99

    transplant99 Registered User

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  14. Matt Foley*

    Matt Foley* Guest

    That's exactly how I feel.

    What if replacement players end up being used? To what extent do you all think ticket prices would be affected if that happened? The only example I can think of where replacement players were used in a major league sport was in the NFL when the players went on strike in 1987 (I think that was the year), and I don't have a basis on commenting on what happened to ticket prices then while the replacement players were used.
     
  15. Jester

    Jester Registered User

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    ticket prices have absolutely NOTHING to do with the CBA.

    ticket prices are governed by supply and demand. if there is high demand for the tickets (see Toronto, Detroit, NYR, Philly, etc...) then the price for the ticket is correspondingly high. if demand is low then the ticket prices are correspondingly low (see Nashville, Tampa, etc...). any reduction in ticket prices will be a reaction to the demand, which means in the short-term yes we will probably see a reduction due to the hit that they will take from the lockout. however, i very much doubt they are going to make any permanent reduction.

    look at it this way. assuming the owners get cost certainty, they aren't about to drop their revenue return.
     
  16. John Flyers Fan

    John Flyers Fan Registered User

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    Yes, like I said for the short term to get the fans back.

    Your previous statement sounded as if you meant for the last year or two. There will be teams that cut prices for this shortened season, and/or next year as well. that will be a temporary fix, and not something that happens long-term.

    We don't really have any choice but to get prices down," Lites said. "And we have to change our approach to selling tickets. We've sold a legacy of winning and individual players. We've got to sell the game and what's great about watching hockey."

    That line means to me if we don't our areana won't be full. That and that alone will be the reason why ticket prices may drop. Because the building wouldn't be full.
     
  17. gobuds

    gobuds Registered User

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    Ticket prices are driven by 1 factor and one factor only- Market Demand.

    There is no corelation between player salaries and ticket prices.

    In markets where the nhl is a draw, Detroit, NYR, Philly, Colorado, Toronto, Dallas - there will be no decrease. Why? As long as people are willing to pay top dollar for the tickets, there is no reason to cut prices. That is why most pundits are dead wrong thinking that big market teams are so dead against a cap. If a team like Toronto can make 80 million with a 60 million payroll, think what they can make with a 32-42 million dollar payroll. Teams will over pay for things like coaches, scouts, general managers because there is no cap on those salaries......

    In markets where the league has suffered they have already lowered prices, how much lower can they go?

    For example, the Orlando Magic, NBA team closest to the Stanley Cup champs- have tickets as low as $10, guess what- they don't sell out

    Miami heat- rival to the panthers- they too have $10 tickets- even with shaq- they don't sellout

    Atlanta Hawks- rival to the Thrasher- $10 tickets- lets not talk about their attendance......

    Each of the competing NHL teams have prices in that range...no one goes- so no, ticket prices will likely at best on average stay the same, not go down
     
  18. likea

    likea Registered User

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    while ticket prices will be lowered for the short term to get the fans back, the owners are trying to recoup what they continue to lose each season with this CBA and make a small profit for themselves

    what this will do is control ticket prices more so than before

    ticket prices went up because the costs of running the team went up (i.e. payroll and other expenses)

    the owners had to get the money somewhere to raise the payrolls as much as they did, the problem was ticket prices were getting to high in a lot of markets and they are pretty much at their max levels right now

    this lockout if won by the owners should enable owners to not have to raise tickets each year...
     
  19. MarkZackKarl

    MarkZackKarl Registered User

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    Why do you even bother posting if you believe that the owners are basing their ticket prices on the payroll/costs and not on market demand? How can you believe something as inane as that?
     
  20. FanSince2014

    FanSince2014 What'd He Say?

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    I don't expect a reduction in ticket prices.

    I do expect some free Center Ice.
     
  21. likea

    likea Registered User

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    whats the owners main source of income....

    whats the owners biggest expense...

    what has doubled and tripled over the last 10 years

    what else has doubled and tripled and in some cases quadrupled over the last 10 years...

    this is an attendence driven league financially, it makes zero sense to think that ticket prices and payrolls are not somehow connected
     
  22. Drake1588

    Drake1588 UNATCO

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    The Caps have had seasons where payroll topped $50M and I would regularly go to games for $10 a pop.

    It's market-driven. An owner may eventually reduce payroll to be more in line with how much he brings in from the gate, but he sets ticket prices on the basis of what the regional market can bear.

    If ticket prices go down, it won't be because a team has cap-generated savings it wants to pass on to the fans, but because the lockout will have turned off fans from the team/game/league, and the team wants to lure them back.

    Teams like Toronto/Montreal/Colorado/Philly won't have to reduce prices, though. Their markets are healthy.
     
  23. Motown Beatdown

    Motown Beatdown Need a slump buster

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    Of course they are connected, but not the way you assume. If Mike Illitch is bring in X amount of ticket revenue he can afford Y amount of salaries. If his ticket sales slipped he would have to lower payroll to adjust for loss of revenues.
     
  24. Jester

    Jester Registered User

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    actually salary and ticket prices haven't grown at the same rate at all. tim pannacio did a comparison in the philly inquirer of this simple fact to put forward to the non-believers of simple economics. while salaries have incresed over the last 15 years at a pretty hefty rate, ticket prices have increased differently.

    salaries are carried by supply and demand for talent/player.

    tickets are carried by supply and demand of fan. thus in order to maximize the amount of money you make off of ticket sales you need to find the point where you maximize that $ number. you can't just raise ticket prices w/ salary and necessarily expect you are setting the most efficient number in terms of getting cash flow, it doesn't work that way.

    if you make your tickets too expensive, people won't buy them and you will lose money. if you make them too cheap everyone will buy them and you will not be making as much as you could. you find the point in the middle that is the best number and sell at it accordingly.

    honestly this is REALLY simple economics and to argue that salary and tickets are connected at all is painting yourself into, erm, the bad end of the bell curve so to speak.
     
  25. Reilly311

    Reilly311 Guest

    Teams that don't fill the building everynight will lower prices. Teams that don't need to lower prices won't . I have a question though, would it be a smart business more for teams like Phily and Toronto (for example) to keep their high ticket prices knowing that their revenue will be shared and thus creating higher player salaries? This is why I think the tickets will be lower. The more the league makes, the more they have to pay the players. I'm not sure the owners want to do that.
     
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