[Blog] Money, Money, Money Written by TjG743 on Thursday, 7th Apr 2011 19:04
So, once again we reach the time of year when, for a lot of teams, the donkey work has been done (or not done for those at the wrong end of the table) and all that's left is a sprint to the finish.
It is also the time of year at which the season ticket renewal forms plop onto the doormats of dedicated football fans throughout the country. It does not take a genius to work out that these two things are intrinsically linked to each other but unfortunately, for the third year in a row, our season climax does not bear anything (other than a revenge mission) to get the fans excited. Despite this, the vast majority of Portman Road fans taking the time to read this find themslves writing a bigger cheque than they have had to previously. Fortunately, as I am entitled to an under-20 ticket, I find myself in a position where my ticket has only increased by £3. However, I know of many people who are not so lucky and find themselves paying a much larger increase on their season tickets. While I do concede that, given the amount of money needed to run a multi-million pound business like a football club, the club need to find a way of generating more revenue, I do not think that increasing ticket prices is the answer. Demand for football tickets is reasonably price elastic, which means that demand is excessively responsive to a change in price. You only need to look at the way the recent season ticket holder promotions have had an effect on the crowd numbers to see this. Therefore, it should follow that if the club were to lower prices, they would actually generate more revenue. The same theory applies to matchday tickets. In my opinion the matchday prices are far in excess of what they should be, and if the prices were to be dropped, the club might see an increase in crowd numbers. Another thing I feel the club has ignored when setting the prices is some of the hideous excuses for football games that have been served up at Portman Road in the last couple of years. Whilst things have picked up on the pitch since the new manager has come in, it does not appear to me that the club are making much effort to reward the season ticket holders who continued to support the club through some of the lowest moments of my time as an Ipswich fan. Despite this seemingly bitter and miserable rant, I am renewing my season ticket for next year but I do think the club need to have a long hard look at their ticketing policy and make sure that the fans and the club are both get the most out of it.
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tractored added 20:57 - Apr 7
Another moronic post saying if the club slash prices they will get bigger crowds, more programmes sold, more refreshments sold and they will make more money. Tell me if this is the case why don't Town, and every other club for that matter, do it? They charge more to make less money for what reason? If only all these businessmen were as smart as you.
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jpr_23 added 22:19 - Apr 7
I don't agree that football is an elastic good, if you are a fan. As an Ipswich fan, my decision to buy a ticket isn't based on a rational assessment of the game. Bias, hope, loyalty all play a big role. With Paul Jewell in charge, and potentially Bullard and Dyer being here, my assessment for next season is going to be much more positive than if Useless Roy was still in charge. If I was totally rational, I would choose to pay a fiver for a guaranteed 90 minutes entertainment at a cinema rather than spend £39 watching us play Norwich. Despite our relative league positions, I happily paid the cash because in my heart, I know we'll beat them 5-0 and I would hate to have missed it. I live in Swindon, and would happily watch Swindon when I can't make it to town games. However, as I'm not a Swindon fan, it is a rational choice, and they have only persuaded me to pay £20 to watch them once this season. If it was a tenner, i'd have gone plenty of times.
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exeterblu added 13:37 - Apr 8
I have to say I agree with the article, even if it is more so for moral and financial reasons, rather than pure financial reasons alone. I personally am an advocate of the Bundersliga model - clubs are run by the fans and therefore in the interest of the fans. Average ticket prices are around #8, with most grounds getting attendences of 90-95% of capacity. Anyone who is interesting in how our germanic friends conduct their domestic football affairs can read more here: http://www.guardian.co.uk/football/blog/2010/apr/11/bundesliga-premier-league |  | 0  |
TjG743 added 11:13 - Apr 9
@tractored - If all these businessmen are so clever, why are the majority of football league clubs running at a loss? And I'm not saying that prices have to be completely slashed, I'm saying that they need to be reduced to a sensible level. You can walk round Portman Road looking at the gate prices and struggle to find an adult ticket for under £30. This doesn't just affect the home fans though, this year the support for the away side at Portman Road has dwindled. It's hard enough getting some away fans to come all the way out here without them having to pay £35 for a ticket. @jpr_23 - I can see your point with it being inelastic if you are a reasonably dedicated fan but there are more people who are not as dedicated as you and I who would quite happily take their £35 elsewhere. If it was an inelastic good to everyone, I wouldn't of posted this blog because we would have 25,000 in every week. @exeterblu - I think the Bundesliga model is a superb idea, you only need to look what the Germans did to our over-paid, over-rated players in the World Cup to see that it does as much the national game as it does for the individual clubs However I cannot see it coming over here anytime soon, as we're already in too deep with the current ownership system and the FA probably don't have the balls to make a stand against the financial culture that's destroying our game.
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