Dynamic pricing in football

[Yeoman204]

It doesn't work in the context of things like concerts or football where you've got a fixed supply of tickets available to meet demand.

I think there are a few airlines (that have fixed numbers of tickets and specific schedules) might disagree with you there.

Using surge pricing to increase ticket prices for an Oasis concert, where demand drastically outstrips supply, has a marginal impact on supply (there was probably a small percentage of people that decided not to buy tickets at the higher price).

Technically increasing prices impacts demand (by reducing it) rather than supply, but I’m guessing you misspoke there. Obviously the textbooks say that the profit maximisation approach here is to continue to increase the price until enough demand falls away to match the supply that you have. I haven’t followed the Oasis thing closely enough to know exactly what they’re doing.

The funniest thing is Ticketmaster saying it's a way of stopping touts! They've basically just replaced the touts themselves.

That is literally the one thing that it will do (assuming the prices on Ticketmaster are close enough to the clearing price). I’d there’s no profit to be made, touts aren’t going to do it.

Anyway, all of that is very interesting and academic. I think it is quite interesting as it applies to football though. Mostly because of how few teams increasing prices would likely benefit. Outside the top of the Prem, how many clubs sell out their stadium week after week? Even our situation is relatively temporary - as soon as new stands are completed we’re likely not going to sell out every game.

Where it might be fun (if some club wanted to try it) is closer to the EasyJet model. As soon as the turnstiles close for a game every unsold seat is worth £0 to the club. As an extreme example, if you could sell it for £1 1 minute before, that’s (probably) a net win, so you might as well. Dynamic pricing is a complex beast though - maybe it could be made to work to sell extra tickets, maybe it wouldn’t be worth it. Maybe clubs don’t want to risk a negative perception from fans. Who knows.

 

[Gwrtheyrn23]

The economist in me sees how dynamic pricing is an efficient way to find the optimal price (from a sellers POV). But that's the key thing - not everything has to be financialized.

People are more than just economic units and communities are more than just markets!

IMHO, fans should be prepared to resist any hint of DP expansion.

Don't think season ticket holders are safe - lots of PL clubs are winding down ST numbers as they are far less profitable than this type of scheme. You might be fine but what about the next generation of fans?

 

[Nibs]

With the American (not a bad thing btw) influence on the game in this country cost of tickets will go up as will the overseas games we have to accept it. That is the model of major sports in the US, and they need to drive the price of their assets up.

 

[WXM-SkyBlue]

With the American (not a bad thing btw) influence on the game in this country cost of tickets will go up as will the overseas games we have to accept it. That is the model of major sports in the US, and they need to drive the price of their assets up.

Think US investors are improving with example of WAFC where there is passion for the club and Ipswich, but US investors over the years have been generally very mixed bag just ask fans of Arsenal, Chelsea, Man Utd, Liverpool, Birmingham, Burnley, Huddersfield, WBA, Leeds and Cov where they tried their hardest to take us down to the NL like Wrexham. Not setting the world alight with European clubs at moment.

 

[Red-C]

With the American (not a bad thing btw) influence on the game in this country cost of tickets will go up as will the overseas games we have to accept it. That is the model of major sports in the US, and they need to drive the price of their assets up.

No we do not need to accept anything.

As proved during the empty stadiums during covid and fan kick back to Superleague, football as a spectacle (and more importantly as a marketable assest) is nothing without crowds.

If fans could unite like they did about Superleague then we could keep ticket prices low and affordable to all. German fans wouldn’t stand for it for a second and would mobilise on mass should anything they dislike be suggested and they have the best fan culture arguably in the world (their teams aren’t too bad either).

As for Americans/tourists. Tourists are always welcome and its a great boost to the town but if you travelling half way around the world to watch a game then chances are the vast majority of our visiting fans have disposable income for games that many existing season ticket holders do not (not all, either way, but many). Even if not as seem with Oasis tickets you will pay more for once a year trip so same argument either way.

Tickets must be kept affordable regardless of who is buying them.

Now question of who gets tickets is another matter. We are seeing things like West Ham removing child tickets and Wolves fans wishing they could get relegated so they can actually go back to a game, and it feels like some clubs actively want rid of regulars to cash in on day trippers who will stock up on merch.

Where is the balance is the question!

 

[frank2]

DP seems like an appropriate abbreviation.

 

[Red-C]

Valencia, who are majority owned by former Salford City shareholder Peter Lim, said: "We understand the concern but we believe it's more about fairness.
"It wouldn’t be fair for someone who planned ahead and bought a ticket early to pay the same as someone who waited until the last minute.

What a load of bollocks.

Lim is a scumbag.

 

[4nur]

With the American (not a bad thing btw) influence on the game in this country cost of tickets will go up as will the overseas games we have to accept it. That is the model of major sports in the US, and they need to drive the price of their assets up.

American business culture is now based on gouging, and people here accept it without complaint. The profits are not reinvested into the product, so it's not needed to compete.

So the more people simply vote no with their wallets the less the gouging happens.

I do not see this as an issue with this club at all. Mainly because the owners are smart. They understand "you can shear a sheep many times but skin them only once". They understand if you give good product for reasonable price you make a LOT more money in reality than screwing people. Not to mention life feels better when you're not a arse, not that I would know.

 

[TheRealWelshWayne]

Thought id leave this here...

Re: ticketmaster's monopoly on ticket sales.

Oasis: A ticketing debacle - and a tangled web of companies

Ticketmaster says artists and promoters set the pricing policy. But the division is not as clear as it seems.

www.bbc.co.uk

 

[Wrexham Can]

American business culture is now based on gouging, and people here accept it without complaint. The profits are not reinvested into the product, so it's not needed to compete.

So the more people simply vote no with their wallets the less the gouging happens.

I do not see this as an issue with this club at all. Mainly because the owners are smart. They understand "you can shear a sheep many times but skin them only once". They understand if you give good product for reasonable price you make a LOT more money in reality than screwing people. Not to mention life feels better when you're not a arse, not that I would know.

The challenge is that Rob and Ryan can't be here for ever and certainly not in a majority role (age, need for more investment etc)
Corporate culture only has allegiance to the shareholders and the need to generate a higher share price and/or dividends.
So what does that mean for Wrexham in the future?
I dont know much about the German clubs, but the best (possibly only) model I can see in the US is the Green Bay Packers - a major force in the NFL in a similar size community to Wrexham and (sort of) owned by the community.
I'll be long gone by the time any of that happens so my advice is to enjoy it whilst we can. And try to influence the future if you can!