Lower Ticket Prices?

[DocHolliday]

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

Ticket prices and payrolls are NOT connected. Introductory microeconomics. Each firm(team) is a profit maximiser. They will set prices in such a way as to make the most money. If a team can fill 10,000 seats at $10 a piece or only 5,000 at $30 each, the price will be $30.

Prices will come down in the short term, because likely demand will go down. They will have to bring people back to the game. Prices in places like TO won't change, where as the Panthers or Coyotes might have to drop prices to get some people interested in hockey again

 

[Jester]

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.

erm...

that's the stupidest thing i've ever heard.

they are giving out a %... so yeah, the more they make the more they give the players, but they also bring in more. say you have to give me 50% of every dollary you make. people will pay 20 bux, meaning you give me $10, but you keep $10 yourself. are you really going to charge $10, and only keep $5 yourself?

 

[Lundmark17]

It's a nice thought that the owners will reduce ticket prices because they'll have some kind of certainty, but let's face it this is the owners we are talking about. They are fighting for every penny they can get, and although they should give back to the fans they won't. I'm sure some teams such as Carolina will be practically giving tickets away for free just to get people in there, but that will be because people don't want to go, not because the owner's feel a need to thank the fans.

 

[Reilly311]

erm...

that's the stupidest thing i've ever heard.

they are giving out a %... so yeah, the more they make the more they give the players, but they also bring in more. say you have to give me 50% of every dollary you make. people will pay 20 bux, meaning you give me $10, but you keep $10 yourself. are you really going to charge $10, and only keep $5 yourself?

It's not 50% though.

 

[Jester]

It's not 50% though.

dude... the % itself doesn't matter in the slightest... the more you make, the more you keep...

 

[likea]

WILMINGTON, Mass. (AP) -- Ticket prices are too high and the next collective bargaining agreement with players should be aimed at keeping them from rising again, says Boston Bruins owner Jeremy Jacobs.

The current labour contract expires next September. NHL commissioner Gary Bettman has indicated that owners need a way to contain salaries that now cost them 75 per cent of their revenue.

The Bruins increased ticket prices for the coming season by an average of two to three per cent. Their $99 top price is one of the lowest in the league, Bruins spokeswoman Heidi Holland said.

"Ticket prices are too darn high," said Jacobs. "Our prices are high.

"We've been chasing away the fans with it over the last couple of years. or every dollar that we've increased ticket prices, we've spent more than two on a player.

"So we recognize we've got a problem. I hope that the commissioner in the next CBA is able to reach an agreement that allows us to stabilize the ticket prices and perhaps even lower them because I think we are chasing away a lot of our ticket base."

http://www.slam.ca/Slam030912/nhl_bos-ap.html

 

[wazee]

I do not expect ticket prices to fall as a result of a salary cap. However, If player salaries are controlled, I do not think fans will be as tolerant of rising ticket prices as they have been in the past. Fans understand that ticket prices need to rise when business expenses go up. But they are likely to revolt if ticket prices continue to rise dramatically as player salaries go down. In that respect, I think a salary cap will have an impact on future ticket sales.

 

[John Flyers Fan]

http://www.slam.ca/Slam030912/nhl_bos-ap.html

That's a nice quote but means absolutely nothing. When the Flyers were getting a new building built during thr early-mid 90's, Snider kept talking about how he was doing this so that ticket prices wouldn't increase.

My tickets have risen exponentially in the last 10 years.

I'll believe it when I see it, not when an owner throws out a quote.

 

[John Flyers Fan]

I do not expect ticket prices to fall as a result of a salary cap. However, If player salaries are controlled, I do not think fans will be as tolerant of rising ticket prices as they have been in the past. Fans understand that ticket prices need to rise when business expenses go up. But they are likely to revolt if ticket prices continue to rise dramatically as player salaries go down. In that respect, I think a salary cap will have an impact on future ticket sales.

It actually works the other way around. Ticket prices increase, which raises revenues, and then Snider, Illitch etc. spend them on player salaries.

They wouldn't raise ticket prices if they didn't KNOW that it woudl raise revenues. It's all about maximizing revenues (like any smart business). What will change now is that the extra revenues will be profit instead of going towards player salaries.

 

[Jester]

likea,

believe jacobs if you will... i wouldn't considering the crap he's pulled, but do so if you want.

i also would suggest that you go and take a simple economics class so that you have a better idea of how this crap works. jacobs can babble about that if he wants -- we can avoid the fact that the PR campaign by the owners has been excellent, and telling you they will lower ticket prices is an excellent carrot for fans -- but in the they are running a business and they aren't going to leave cash on the table so to speak.

they are attempting to maximize the revenue that comes from tickets. thus you pick the ticket price which you get the highest amount of return on. thus, assuming an efficient market, the price is set based on the demand for the ticket. if you are willing to pay $X they aren't about to offer you less than that... why would they? likewise if no one is willing to pay $X they will lower ticket prices to $Y which people will pay.

it is called equilibrium and efficient markets if run correctly find it. economically owners don't care how many people are actually in the seats as long as the money they are making off of those seats is the highest possible number.

again... basic economic theory.

 

[Jester]

http://www.philly.com/mld/philly/sp...21.htm?template=contentModules/printstory.jsp

Yes, salaries have had a trickle-down effect on the fans. Yet even if the NHL adopts a salary cap, prices won't be rolled back significantly - if at all.

When the Flyers moved from the Spectrum to the CoreStates Center in 1996, ticket prices rose. That first season, the top ticket price was $62, up from $55 at the Spectrum the previous year. The Flyers' payroll that season was $19 million.

Last season, the Flyers' payroll was $57.3 million, with a top ticket price of $85.

So, ticket prices have increased $23 - about 37 percent - since 1996-97, while the Flyers' payroll has increased more than 200 percent over the same period. The point? The price of Flyers hockey already was high before the payroll became outrageous.

At least the Flyers are putting the money into talent.

Look at Nashville. The Predators had the lowest payroll in hockey last year at $21 million, yet their average ticket price was still $42.50. Their highest-priced ticket matched the Flyers' $85, and none of their players made more than $2 million.

Columbus had a payroll of $32 million and an average ticket price of $41. The Blue Jackets' highest ticket price is $138 at the glass. None of the Blue Jackets players made more than $3.5 million last year.

How about that miserly Bill Wirtz in Chicago? His fans pay an average of $50 a game and all they get in return is a payroll of $30 million. The Blackhawks' highest ticket price is $250 at the glass. Wirtz' highest-paid player last season was Alexei Zhamnov ($4.5 million), who was traded to the Flyers.

 

[gobuds]

this is horse#@$#@$. Jacobs is one of the few owners who actually makes money each year. There is 0 chance, I repeat, 0 chance they will cut ticket prices simply because of a cap. The only way they will cut prices is if people stop buying them. What he said is true. Stablize them- want to know why- they have hit the ceiling. As the economy sputters along, corporations aren't buying suites and club seats like they used to- so the 150-200 tickets are harder to sell- this has nothing to do with player costs- when the economy is good- there is demand for tickets- that is why you keep hearing the argument that the average family of 4 can't go to a game anymore- that is bs- you can - family packs are there for 40-60 a night that includes food- can they get good seats- that is a different story-

The other reason corps aren't buying- the product stinks...It is boring as hell- they have to open things up...again, not related to player costs at all. Any argument otherwise is completely hollow

 

[Otter]

It's important as a victim of abuse to let your abuser know you will not tolerate any future abuse. So I don't plan on running back to the NHL (openly) (......but I'll watch on TV).

I had planned on buying a ticket package for the first time in my life this year but I don't think I should at this point. I'd hate for the NHL to end up with any bounce in ticket sales after this lockout because it is our loyalty (as fans) to the league that allows them to drag us along like this. However, I might be obliged to buy if the ticket prices drop significantly.



BTW, Hi. Long time listener, first time caller.

 

[Jaded-Fan]

Then Pens reduced ticket prices, as did many teams, before the start of the lockout. I remember when they announced it, as a recognition that what they were fighting for would be passed on to the fans as well in lowered ticket prices.

From an August 2004 article regarding a trend of lowering prices in all sports for less premium seats. They also add that the Pens lowerd prices from 6% to 45% across the board last year:

Teams woo fans with cheaper seats
By Greg Boeck, USA TODAY
While prices for premium seats continue to rise for the well-heeled, there is a move among concerned sports owners and their marketing gurus to keep prices more affordable and games more accessible in a dynamically readjusting marketplace.

http://www.usatoday.com/sports/2004-08-30-top-ten-number-8_x.htm


... and from the Pen's site:

2004-05 SEASON TICKETS

The Pittsburgh Penguins have slashed season ticket prices across-the-board for the 2004-05 season! More than 8,700 seats are now available for $30 or less on a Full Season Plan basis and over 2,000 seats are available for $15.

Fans can experience the X Generation from the same great seat with the Full Season Plan that includes two pre-season games and all 41 regular season match-ups or the 20+ Game Plan that includes one pre-season game, the home opener and 18 games of your choice. Both plans offer incredible savings off the gate price of tickets and access to an extraordinary benefits and amenities package.

http://www.pittsburghpenguins.com/tickets/season.php

 

[John Flyers Fan]

Then Pens reduced ticket prices, as did many teams, before the start of the lockout. I remember when they announced it, as a recognition that what they were fighting for would be passed on to the fans as well in lowered ticket prices.

2004-05 SEASON TICKETS

The Pittsburgh Penguins have slashed season ticket prices across-the-board for the 2004-05 season! More than 8,700 seats are now available for $30 or less on a Full Season Plan basis and over 2,000 seats are available for $15.

Fans can experience the X Generation from the same great seat with the Full Season Plan that includes two pre-season games and all 41 regular season match-ups or the 20+ Game Plan that includes one pre-season game, the home opener and 18 games of your choice. Both plans offer incredible savings off the gate price of tickets and access to an extraordinary benefits and amenities package.


http://www.pittsburghpenguins.com/tickets/season.php

That's all fine and dandy but the Penguins averaged under 12,000 a game last year. They needed to do something. Now show me the Leafs, Avs or Red Wings slashing prices and i'll be impressed.

 

[syc]

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

Thats just a fact.

Yeah and all of those teams are probably located in the American south.

 

[syc]

That's all fine and dandy but the Penguins averaged under 12,000 a game last year. They needed to do something. Now show me the Leafs, Avs or Red Wings slashing prices and i'll be impressed.

LOL we know that won't happen, especially if they will be sharing profits with teams like Florida and Carolina.

 

[Jaded-Fan]

It is not just the Pens, teams such as the Caps, Dallas Stars, etc. have lowered prices already, others have talked of doing the same when hockey resumes.

If the Avs, Redwings, Toronto do not, fine by me, let me see if they can continue to charge the prices they do in Toronto once there is a $42 million ceiling on salaries and hope to keep selling out. If they can, again fine by me.

I actually think that the article that I quoted above makes the most sense regarding the furture of ticket pricing. In all sports, not just hockey, as the article said, premium seat prices will continue to rise, but the less premium seats will fall to more affordable levels. It is what airlines and hotels do, make sure that the seats get filled and there are only so many who have premium sized wallets.

 

[DocHolliday]

It is not just the Pens, teams such as the Caps, Dallas Stars, etc. have lowered prices already, others have talked of doing the same when hockey resumes.

If the Avs, Redwings, Toronto do not, fine by me, let me see if they can continue to charge the prices they do in Toronto once there is a $42 million ceiling on salaries and hope to keep selling out. If they can, again fine by me.

I actually think that the article that I quoted above makes the most sense regarding the furture of ticket pricing. In all sports, not just hockey, as the article said, premium seat prices will continue to rise, but the less premium seats will fall to more affordable levels. It is what airlines and hotels do, make sure that the seats get filled and there are only so many who have premium sized wallets.

You've hit the nail on the head. Each team will do what is best for them to maximize revenue. The leafs had been sold out pretty much since WW2. Why would they lower prices? Until fans start speaking with their wallets(which won't happen in TO), like they have in other places, prices will remain the same. Pens and Caps fans have stopped paying so prices have been cut. It's a business and the owners are going to cut in to their revenues as a goodwill gesture.

 

[StevenintheATL]

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

To paraphrase a statement Skip Caray once said many years ago about attendance at a Hawks game, "A maniac could come in here with a machine gun and start shooting and not hit anybody."


You really cannot compare the attendance @ Thrashers games to that of the Hawks. I mean Georgia Tech averages more fans at the Thrillerdome than the Hawks do at Philips. Some nights they claim 7,000 fans at a Hawks game, and it looks like there may be 1,500 tops. The Thrashers over the last few seasons had as many under 10,000 in attendance games as the Hawks have had 10,000+ in attendance games. The Thrashers are a marketable commodity in Atlanta, the Hawks days as a hot ticket are long past, and are verging on becoming the Eastern Conference equivalent to the LA Clippers.


As for teams lower tickets once the NHL returns, I think many teams will lower the low end of the ticket prices (Upper deck seats in general), as these are the tickets the casual fan usually buys. You won't see teams making any cuts on the higher end seats at all, that's the profit center for them. You're a businessman and want to impress a client who's a hockey fan? You're going to fork out the several hundred dollars for glass side seats, not $25 on some seats in the upper deck. Some teams may come out with special ticket packages as well, making it very attractive for even the casual fan to buy into.