Football Prices - Fantastic Elastic?
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How elastic is a brand? Well, according to textbook theory it depends upon a number of factors such as substitutes and rational economic behaviour. For the average father of two, who wishes to visit his premiership team of choice, this could cost nearly £300 inclusive of half time food. Not a cheap afternoon!. In terms of the premiership, it is fair to say that some brands have a greater loyalty than others, which broadly translates into season tickets at some clubs that are almost price inelastic.
If there was a premier league of various elasticities who would be top? - Students could analyse attendances, versus revenue streams (tv versus merchandise) or regress league position against any one of these variables??!!
In the context of rising transport, mortgage and utility costs, to what extent can such annualised increases be sustained? Many season tickets holders who are personal friends, have managed just to “hold on” this year, but in their view the tipping point may become transport costs rather than the season ticket per se - (parking at Man Utd is £25 on a matchday) next year if fuel continues to increase at the current rate. Whilst quite unscientific, when asked what top 3factors dictated their decision to renew their season ticket, the rank order of preference was quite interesting:
1) Disposable Income
2) Transport Costs
3) Quality of football on show
Despite the emotive and almost religious nature of football, epitomised by messrs Shankly and Ferguson et al, it would appear that perhaps rational economic man worships at a more domestic temple. We will find out over the next few seasons.
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