What does this do to ticket prices?

Discussion in 'The Business of Hockey' started by thestonedkoala, Feb 18, 2005.

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  1. thestonedkoala

    thestonedkoala Everyone! PANIC!

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    I have a very strong suspecion that ticket prices aren't going to go down with a hard cap. And in fact may go up to cover taxes and/or revenue sharing. Think about it for a second. Your team is hitting the cap, they need to still generate revenue though. What better place than at the ticket stands? And then the opposite happens. Your team lowers the ticket prices but isn't generating a lot of profit. They have to cut players salary, so they don't sign a couple of guys for a couple millions. They aren't icing a quality team. You pray and hope their rookies pan out but what if they don't?

    I just have a bad feeling that ticket prices might take a huge hit for some teams trying to cover their bases.
     
  2. Jester

    Jester Registered User

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    tickets = supply.

    us wanting to watch hockey live = demand.

    where supply and demand meet to equal the greatest return is where ticket prices will be. no more. no less.
     
  3. thestonedkoala

    thestonedkoala Everyone! PANIC!

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    But the demand has been going down since teams have been raising ticket prices. Even with a cap, do you think owners are going to go, hey look, we're getting money now, let's spend on it the team instead of saying hey look, we're getting money now, let's put a little in the team but let's keep the rest of the money for ourselves.
     
  4. nomorekids

    nomorekids The original, baby

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    Listen to Bettman's interview on Mike and the Mad Dog from yesterday. I mean, granted, it's tough to say from this perspective, but Chris asked how the league was EVER going to recover from this, pointed out how disillusioned a lot of people are...and Bettman said SPECIFICALLY that "if dropping ticket prices will bring people back, then we'll drop ticket prices. In fact, it's probably going to be necessary"

    Like I said, take it for what it's worth.
     
  5. thestonedkoala

    thestonedkoala Everyone! PANIC!

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    I wonder for how long though they will drop ticket prices?
     
  6. Beukeboom Fan

    Beukeboom Fan Registered User

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    I'm sure they'll stay low as long as they have a hard time drawing fans. Teams like TOR, EDM, COL & PHI probably won't drop ticket prices at all. It's the less die-hard markets that are REALLY going to have to work to get the fans back that will drop the ticket prices.
     
  7. thestonedkoala

    thestonedkoala Everyone! PANIC!

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  8. nyr7andcounting

    nyr7andcounting Registered User

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    Dropping ticket prices is a move to get people back in the stands and will only last until attendance is back to normal levels. If that means 1 season or less, than that's how long we are going to have cheaper tickets. Otherwise, it's simple supply and demand no matter what kind of system the league players under. In fact, as most pro-cap people would point, the smaller markets are going to be more competative when the NHL gets back so tickets in those markets might increase from where they are now. But in the long run there is no correlation between ticket prices and a cap, linkage, lux tax or anything else.
     
  9. Beukeboom Fan

    Beukeboom Fan Registered User

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    Well, considering that we were at about 60% of capacity BEFORE all of this shyte went down - I'd think they try to do something. However, our ******* son of a dog owner said today that the team still has no intention of televising home games! Thanks, Bill, welcome to 1946! Oh, and by the way, this was right after he said that the teams will have to work to bring fans back! The irony of the situation is just incredible.

    I do think the Hawks attendance will rebound somewhat after the lockout if the young guys are given a chance to shine, instead of trotting out "replacement players" like they've been doing for the last 2-3 years.
     
  10. I still don't see how everyone thinks lower ticket prices is going to help anything.
    Sure it would be nice, but it is not going to happen in any long term fashion.
    What really needs to happen is better marketing, look at nascar, i know many people that live, breathe eat, poop nascar but have never been to a race.

    I hate to sound like a broken record but the NHL needs to look at a way better marketing plan, and kiss butt over at fox and get them back on the NHL bandwagon, they seem to know how to market the best IMHO
     
  11. CarlRacki

    CarlRacki Registered User

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    I'm not sure attendance in Chicago ever rebounds until Dollar Bill takes a dirt nap.
    There was a time not so long ago when it was very tough to get a Hawks ticket other than standing-room only in the second balcony of the old Chicago Stadium. What's happened there has everything to do with how the team's been managed.
     
  12. not quite,

    player costs are variable costs which are factored into the supply schedule.

    demand how many fans are willing to purchase tickets to watch whatever product is put out

    the franchise's objective is to maximize profit (or minimize costs, same thing) and the way to do that is to keep the ticket prices as high as possible but sell out the arena in the process.

    in saturated and traditional markets like tor, phi, det, etc -- most likely they will have no problem selling out the stadium at current prices. the demand is there even after going through the lockout. if the demand is not there and there are not enough people buying tickets, the team will lower prices (shifting the supply curve right) and thus increasing demand.

    now if we assume there is a cap in place, theoretically the supply schedule will look different because the roster cost will have decreased, making the supply curve shift down, and lowering ticket prices. however, since the team is out to maximize profits, and the marginal cost at current prices is not past the point of decreasing returns with the new roster cost, the ticket prices won't change.
     
  13. maybe if they get other revenues tix $ could drop
     
  14. Steve L*

    Steve L* Registered User

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    The demand will go down, the ticket prices will go down in most markets.

    Something I said all along and hardly anyone believed me.
     
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