Salary Cap will NOT bring lower ticket prices

Discussion in 'The Business of Hockey' started by Motown Beatdown, Dec 17, 2004.

Thread Status:
Not open for further replies.
  1. Motown Beatdown

    Motown Beatdown Need a slump buster

    Joined:
    Mar 5, 2002
    Messages:
    8,572
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Indianapolis
    Home Page:
    For those who still believe it will, i'm telling you it wont.

    The owners want a certain percentage of revenue paid to the players. They aren't saying a cap will be 35 million regardless of revenue, those numbers are based on the league revenues in 2003-2004.

    The owners would like roughly 55% of revenue going to the players and the rest going to the owners to pay non payroll expenses. So basically they get 45% of the revenues to do with what they want. If revenues average 70 million a team would it would break down 31.5 million to the owners and 38.5 million to the players. Now if the revenues averaged 80 million per teams thats same breakdown would result in 36 million to the owners and 44 million to the players.


    The bigger the pie the bigger the cut for both parties. Who's pays for the pie? The vast majority of it comes from ticket sales. So why would BOTH the owners and players want lower ticket prices when it cost both parties money?
     
  2. SENSible1*

    SENSible1* Guest

    Ticket prices will come down in the short-term to woo fans back. This is expecially true if they have to use replacement players and the NHLPA members willing to cross.

    In the long term prices will rise to what the market will bear.
     
  3. Stoneburg

    Stoneburg Registered User

    Joined:
    Mar 21, 2004
    Messages:
    2,157
    Likes Received:
    1
    Trophy Points:
    84
    Location:
    Fishing
    The owner's are trying to stop the red ink from flowing, not trying to lower ticket prices, these two issues have been linked by some fans, and they are not related.

    I agree that in the short term they may come down.
     
  4. Steve L*

    Steve L* Registered User

    Joined:
    Jan 13, 2003
    Messages:
    11,548
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Southampton, England
    Home Page:
    Several teams have already announced lower ticket prices when the season starts up. I bet more will drop prices when they know what the CBA brings to the table.
     
  5. ColinM

    ColinM Registered User

    Joined:
    Dec 14, 2004
    Messages:
    590
    Likes Received:
    1
    Trophy Points:
    66
    Location:
    Halifax
    They announced lower ticket prices as a bribe to fans to come back. In those instances the demand for ticket prices has gone down so the price must follow. The original premise of this thread is correct though. The owners are out to milk every dime out of the fans that they can. Their P.R. people are just better at spinning their greed than the players are.
     
  6. Motown Beatdown

    Motown Beatdown Need a slump buster

    Joined:
    Mar 5, 2002
    Messages:
    8,572
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Indianapolis
    Home Page:

    Which teams, i'm curious?
     
  7. hockeytown9321

    hockeytown9321 Registered User

    Joined:
    Jun 18, 2004
    Messages:
    2,358
    Likes Received:
    0
    Trophy Points:
    0
    Am I the only one that finds this somewhat hypocritical?
     
  8. Kaiped Krusader

    Kaiped Krusader Registered User

    Joined:
    Jul 1, 2004
    Messages:
    248
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Rylan up the Opposition
    You're probably not the only one, but that's how businesses work. They try to fix their expenses and maximize their revenues. NHL franchises are not unique in this regard. I know the position I'm in has a fixed salary range, yet that doesn't stop my employer from trying to bring in as much money as they possibly can.

    If a team is in a market with tremendous demand, prices will get jacked up; if a team is in a market with lukewarm demand, they'll fall to the point where revenues are maximized.
     
  9. Steve L*

    Steve L* Registered User

    Joined:
    Jan 13, 2003
    Messages:
    11,548
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Southampton, England
    Home Page:
    I cant remember but theres at least 3 or 4 that have publically announced lower prices when the NHL resumes.

    Maybe fans of those repspective teams can confirm it.
     
  10. MarkZackKarl

    MarkZackKarl Registered User

    Joined:
    Jun 29, 2002
    Messages:
    2,976
    Likes Received:
    5
    Trophy Points:
    131
    Location:
    Ottawa
    Home Page:
    And Im sure the teams lowering prices is a response because their teams are crap (Washington)? And fans wont pay more. It has nothing to do with a cap, and everything to do with market demand.

    Funny, they want to limit the players earning abilities due to artificial barriers to immense huge profits, but will let the ticket prices be determined by 'market value'.

    Would you be a partner with a weasel?

    There will be a season, but still, its digusting.
     
  11. Ticke Prices will only come down in two scenarios.

    1) In cities where owners can afford to lower prices, if the demand for tickets has sunk significantly because of the lockout, prices may come down short term.

    2) In cities where owners had pegged ticket prices above the demand/supply juntion to meet salary costs, tickets could come down.

    A salary cap will harm fans in cities who';ve supported their teams well enough to ice competitive teams.
    A salary cap will help fans in cities who've supported their teams in markets that otherwise didn't have the economic backing (corporate help) to field competitive teams.

    Nothing will help fans in tows where the team's management was inept (Chicago) or where hockey isn't on the radar screen (Carolina)
     
  12. Motown Beatdown

    Motown Beatdown Need a slump buster

    Joined:
    Mar 5, 2002
    Messages:
    8,572
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Indianapolis
    Home Page:
    Here's an article i found on the subject of lowering ticket prices....


    http://feeds.foxsports.com/story/3186216

     
  13. FLYLine27*

    FLYLine27* BUCH

    Joined:
    Nov 9, 2004
    Messages:
    42,410
    Likes Received:
    1
    Trophy Points:
    0
    Occupation:
    PO
    Location:
    NY
    It wont happen.


    But hey The RANGERS Did!....but that wasnt because of the lockout..that was because they gaurenteed us a spot in the playoffs last season and said if they didnt make it they would cut SEASON TICKET prices by 10% :yo:
     
  14. fan mao rong

    fan mao rong Registered User

    Joined:
    Feb 6, 2003
    Messages:
    968
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    port royal , pa
    Home Page:
    People who are not economic illiterates know that lowering the price of an item does not necessarily result in lower revenues or lower profits. If someone sells apples he might be able to sell some for $3 dollars each for so many units but if the price was lowered he could increase the units sold and increase both revenues and profits. That is basic economics and applicable across the board. You will say in a hockey example that price (of a ticket) is set by supply and demand. It is a prime factor, but not the only factor. If replacement players are used, most would agree it would decrease demand for tickets. If it decreases demand for tickets, then in order to sell more tickets and increase revenues and total profits, the price of an individual ticket would be lowered. If it does not decrease demand for tickets, there is absolutely no reason to play the better players more money. These same rules apply regardless of the level of player available when or if play resumes.
     
  15. TexSen

    TexSen Registered User

    Joined:
    Nov 20, 2003
    Messages:
    1,043
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Schaefer..Beer..mmmm
    Really? There's someone out there that believes ticket prices will actually go DOWN????????? That has to be the funniest thing I've heard all week and I've been watching The Office and Ricky Gervais: Live Animals DVD!!!!!!!!!!!!!!!!!!!!!
     
  16. ArtG

    ArtG Registered User

    Joined:
    Feb 9, 2004
    Messages:
    2,803
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Vancouver, BC
    It's all about supply and demand. In the big markets tickets probably won't go down or maybe marginally so, but in the smaller markets -- the ones in the US -- the tickets will definitely go down.
     
  17. chriss_co

    chriss_co Registered User

    Joined:
    Mar 6, 2004
    Messages:
    1,769
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    CALGARY
    A salary cap won't necessarily lower a cap but what it will do is relieve ticket prices of its current inflationary drive due to player's increasing salaries.
     
  18. Steve L*

    Steve L* Registered User

    Joined:
    Jan 13, 2003
    Messages:
    11,548
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Southampton, England
    Home Page:
    I suggest you read the thread

    They included the Buffalo Sabres and Washington Capitals, who had announced price reductions prior to the lockout.

    Isnt it logical that many more will consider what the new CBA brings before announcing the price structure?

    I think the teams that drop prices willl have more success as the average fan will come back and bring a better atmosphere with them and we might have intimidating places like the spectrum again.

    I know people say it doesnt make any difference but in Europe teams have been known to pay for transport so away fans can cheer on their team in important games. If fans make no difference then why do they do this?
     
  19. hockeyhomer99

    hockeyhomer99 Registered User

    Joined:
    Mar 24, 2003
    Messages:
    348
    Likes Received:
    0
    Trophy Points:
    0
    Occupation:
    Aircraft Mechanic
    Location:
    Dallas, Great State
    Home Page:
    In Dallas

    1. Cowboys... Hard cap and tickets continue to rise
    2. Mavericks- Soft cap and no lower prices
    3. Rangers- Luxury Tax and had to lower prices due to product on the field.
    4. Stars- Cap/ nocap , lux tax or no they will not lower prices again. They did last year for the ticket most of us couldnt afford anyway.

    Even our high school got public( school taxes) funded new stadium and went up on prices :lol:
     
  20. Hoek

    Hoek Stanley Principal

    Joined:
    May 12, 2003
    Messages:
    5,571
    Likes Received:
    255
    Trophy Points:
    124
    Location:
    Tampa, FL
    Of course ticket prices won't go down.

    But we'll all still have our teams 10 years from now.
     
Thread Status:
Not open for further replies.

Share This Page

monitoring_string = "358c248ada348a047a4b9bb27a146148"