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Home›General›Pinching the fan for more; Arsenal raise ticket prices

Pinching the fan for more; Arsenal raise ticket prices

By Michael Price
May 6, 2011
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‘I share your concerns that ordinary fans are being priced out of live football. This is bad for the continued health of the game and is driven primarily by escalating and ultimately unsustainable levels of spending on transfer fees and salaries.

‘This is a fundamental issue that football needs to address and is why I have been a vocal supporter of UEFA’s proposals to bring more restraint and responsibility to spending within football.”

 He added: ‘I agree that we need to reduce the club’s reliance on ticket revenue as a source of income to compete at the highest level. At present, we are more reliant on ticket revenue than any of our major competitors.

‘Therefore, we have made significant investment in initiatives to ensure that our squad spending becomes as efficient as it can be and to develop our commercial revenues.

‘Our strategy in terms of commercial revenue has already begun to produce results and I believe can develop significantly over time. We are also working hard to maximise our income from our remaining property activity.

‘The results of those investments will not be instantaneous but they are already beginning to make a difference. Coupled with initiatives to build our fanbase around the world, this will reduce our reliance on the matchday fan as our biggest source of income. We are working hard to get to that point but we are not there yet.’ – Ivan Gazidis’ response to the Arsenal Supporter’s Trust

This week the club we love announced that there would be an across the board 6.5% increase in ticket prices. This ticket raise was met with a unprecedented and unified response by the major supporters groups. In a time of economic trouble and strife having ticket prices go up is essentially squeezing the heart out of the game.

But is the EPL different from any other major global business or sport? In the US, you can’t find a major sport where the average ticket price is less $40-50 per game. It only goes up. For instance, the least televised of the major sports – hockey has seen some of its major clubs raise their ticket prices triple over what they were 15 years ago. That includes a season with a lock out.

Sports is big business and big business is ruining this game. But alas there is no turning back.

But it wasn’t always such, sports used to be the bastion of the working man. In bygone eras it was the place you would go watch blue collar folks like yourself ply their extraordinary talents. It was the place you went to forget the woes of the day. It was why in the United States they played Baseball (in one sense or another) during the wars or depression. It is why football carried on in the war years. Simply put you got rid of your depression by watching lads who at the time we very much like yourself – albeit with sports skills – do great things.

That era however, is long gone. Now, sports are no longer local, they are global. Fans of any given team encompass regions far beyond the team’s immediate sphere of influence. Players are global icons with sponsorship deals and mega- contracts which only make the cost of running a team increase.

Sports is a classic tale of supply and demand. As long as there are people willing to spend their money to go see matches, ticket prices will stay where they are – and likely increase. And while it looks like fans are growing increasingly frustrated over this, the likelihood that mass protests will lead to a chance seems unlikely. Simply because there are people supporting every team who will pony up the money to go see the team they love.

Many fans are trying to resort to watching the games at home but even that hasn’t helped as sometimes the match isn’t even on. So either they have to the match, or try and get down to a pub or sports bar to see their favourite team. But even that is beginning to have issues with the liscensing fees that TV networks are charging to show the match.

It’s a vicious cycle all the way around that has essentially priced the average fan out of the picture.

The rationale behind the Arsenal ticket rise:

Arsenal have done a miserable job until recently of extending their global brand. It is this marketing failure that has led them to be reliant on ticket revenue as one of their primary means of running the club. Not entirely a bad thing, but on the whole when it is the primary source it does require ticket increases to run the team. Ticket rises that create bad blood between club and fan

On that level – from a business operating sense I understand the club’s price rise. I don’t like it. I don’t agree with it but I get it. What Arsenal must do and it seems like they are trying to do is to develop promotional relationships they can leverage so that do not become so dependent on ticket revenue. Manchester United announced a ticket rise of  £1 on the same day Arsenal announced their 6.5% rise. Why are they able to do such a small rise? Because a big source of the club’s operating costs are supported and paid via the great marketing and sponsorhip relationships the club has.

Forget for a moment the on the field product, what Manchester United has done as a business is truly a model of global sports. As much as I hate seeing the Man U brand anywhere, give their office staff due for getting these deals. Arsenal are in their infancy in doing this. They need to find a way to accelerate this and yes, Ivan it won’t happen over night but the fruits of it need to be seen sooner rather than later.

For instance the Arsenal shirt deal was platry when compared to other clubs. It was an add-on to the naming rights of the stadium. And while that seemed a good bet, the loss of revenue they could have is astounding. Liverpool, a club with as much history as our own, but that has been absolute crap these last two season, just signed a new shirt deal worth £25 million. Arsenal’s deal around £4 million (I think).

These are hard economic times, asking for such a substantial ticket increase during these times and also at a time when the club has failed on the pitch seems rather dimwitted to me even if it is understandable. Word on the street is that club debated the increase right up until the last moment. That nugget combined with Gazidis’ own words leads me to believe that the club is very aware of the friction this decision is causing.

I’ve talked to a couple of supporters and as best I can tell many are going to still go to the matches. There is hope that the club realizes it is up against a wall – that it must now show that the price increases will support investment in the club. I would not want to be the management of the team – that includes Arsene Wenger, should the club raise prices and serious work is not done to address improving the team.

It will not be pretty.

Stay Goonerish!!!

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19 comments

  1. Isaiah Shufford 5 December, 2011 at 16:34 Log in to Reply

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  2. Watch Live Football Stream 12 November, 2011 at 08:08 Log in to Reply

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  3. sachin 6 May, 2011 at 20:58 Log in to Reply

    How many fans are on the waiting list to become an Arsenal season ticket holder currently? Back in the final years of Highbury, I had heard that number was around 20,000. Even though almost 20,000 extra seats (minus the away seats) were added to the Emirates, I am sure there is still a good number of people on the waiting iist. If 5000 people do not renew their tickets next season, then easily that number of new fans would step in. The club must have factored this in because if there are people who have waited 7-10 years for a season ticket, they will pay for a new season ticket, regardless of the high price. The novelty of finally being a ticket holder for a few years might be too much to resist. I think the problem might happen in another few years when even these new fans get tired and few new younger fans are getting interested, especially if Arsenal’s football does not improve and starts going downhill.

    You are right DAG that Arsenal done have a poor job of marketing their brand and I remember their shirt deal was quite poor even compared to Chelsea when the new stadium was getting build. Who fault is that? Ivan may claim to escape a bit from this because all these poor deals were done before he joined but has he contributed anything to extend the brand? I don’t know but the club certainly has plenty of global appeal or used to a few years ago.

    But these words by Ivan are frustrating:
    primarily by escalating and ultimately unsustainable levels of spending on transfer fees and salaries.

    Don’t Arsenal try to balance their books by spending as little as possible on transfer fees? Arsenal are the one club that prides itself on not wasting money on transfer fees, so to hear these words from Ivan are downright insulting. Yes he is making a general statement about other clubs around Arsenal, but other clubs have nothing to do with Arsenal’s model. Ivan once called spending high money on transfer tickets like getting addicted to a drug habit. He used those words to indicate that Arsenal would not get addicted to this habit, so he cannot get away by using that example to defend Arsenal’s increase in ticket prices.

    Then the salaries. Sorry, but that is entirely Arsene’s fault. The wasted high money on some Arsenal players is a loss the club have to absorb on their own, not the fans. This was a business decision that Arsene and the board got wrong, by paying high prices on players who produced little or yielded poor & even negative dividends. No fan would be delighted to know that Silvestre, Biscoff, Almunia, etc were earning good money from Arsenal while producing very little or hurting Arsenal’s chances to earn more money by progressing further or winning more points.

    Of course, at the end of the day, the club can do whatever they want. As long as people pay, nothing will change.
    The club does not cares how loyal a season ticket holder is or how long they have been holding a season ticket. As long as people buy tickets, they will be happy.

    A different but somewhat related example.

    A decade ago, multiplex tickets in my city were $10 or less (Canadian dollars). Within a few years, around 2003-2004, an average ticket price was as high as $14. Coupled with high prices were the elimination of cheap tuesday nights & and matinee rates (where the prices were either half or a few dollars cheap than weeknights). Not surprizingly, people started attending films less. Eventually, after 1-1.5 years, the ticket prices dropped down to $10.95, and cheap tuesdays were brought back. All that changed until Avatar came out, and 3D pushed prices above $15. Now, with new digital theaters and D-Box seats (moving chairs), ticket prices are as high as $17-$18. People are paying, and these high prices will remain for the near future, until eventually another market correction forces a realignment of prices.

    Until such a market correction happens, Arsenal will do whatever they want, even if the team wins a trophy or not.

    • sachin 6 May, 2011 at 21:20 Log in to Reply

      @sachin, Another thing I think that might happen next season. Quite a few season ticket holders might not attend as many games as they used to and they will sell their tickets for a good number of games. Of course, these fans will sell their tickets legally and at face value but this might mean more options for overseas fans to attend games. Previously, at highbury, only a few games were easily available but it has been easier getting tickets at Emirates for many more fixtures and that might increase this coming season. And there will be many more overseas fans attending their first live Arsenal fixture. I would not be surprized if Arsenal start organizing more sales to American fans via their website over the course of the next few years and create a separate membership package, other than the existing model. Maybe Colorado Rapids season ticket holders might get first dibs? :)

      • jroybower 6 May, 2011 at 22:12 Log in to Reply

        @sachin, hmmmm. that would be an incentive to start going to Rapids game given i live in CO….

        • sachin 6 May, 2011 at 23:41

          @jroybower, Every Arsenal fan sacrifices a little bit to show their love for the team, so you might have to sit through a few Rapids games for your beloved Arsenal :)

      • stag133 7 May, 2011 at 13:17 Log in to Reply

        @sachin, The last 3 or 4 years…. there has NOT been much of a problem getting tickets to Arsenal home matches. With the prices so high, season ticket holders regularly sell off their tickets. Most people simply can’t afford to go to most of the matches. I went to Arsenal v Chelsea last season, and the DAY OF THE MATCH, tickets were available on the street, AND in pubs, for a reasonable price.

        Yes. There are a lot of fans that want to go to an Arsenal or Chelsea match in London… a day out… that lot.
        We are talking about the HARD CORE, LIFE LONG supporter, who is being completely priced out.
        Those are the fans that MADE THE TEAM what it is… going on freezing cold days, weeknights in the rain, etc.

        You are risking losing that core… and if we don’t continue with Top 4 positions, (and that’s becoming precarious)… the wait list and the full stadiums will wane.

        No, its not happening tomorrow… but maybe next week!

  4. jroybower 6 May, 2011 at 17:33 Log in to Reply

    DAG is right it is simple economics whether you (we) like it or not. if the price of supplied product is more than is demanded then prices will eventually fall, or their will have to be stimulation to create demand.

    btw- AFC LLC PLC Ltd Inc doesn’t care if the seats are empty, so long as someone paid for them. maximizing profit does NOT mean you have to sell every seat either, think about that for a second because it isn’t obvious. of course you can argue that reduces “atmosphere” and rightly that is a concern as it could grow and create a negative feedback mechanism.

    while Arsenal are a brand, they are also a sports team which makes them a little different than the (examples?) of brands that went the way of the dodo overnight. if it happens, and i don’t rule out that it could, it is more likely to be a slow death sprial of support because of the nature of the industry.

    like DAG said, i get it, but i don’t necessarily “like” it.

    • Fred 6 May, 2011 at 19:23 Log in to Reply

      @jroybower,

      The club doesnt care whether loyalists like you “like” it or not. Just open your wallet and fork out the cash ASAP!

      PS: If the number of renewed season tickets is less than 6.5% then they are going to get a loss. And that is not even counting the hardcore North Londoners who can NOT afford it but will still buy in the hope of recouping some of the costs by trying to sell some of the “lower” games.

      • jroybower 6 May, 2011 at 19:33 Log in to Reply

        @Fred, check your premise.

        if renewed season tickets are < 6.5% they don't lose anything, unless ERVERYONE on the waiting list (or their are insufficient numbers on the waiting list) decide they don't want to buy season tickets either at the new higher price…

        tic tic tic tic tic tic tic, OH!

        and i still stand by my claim that not selling out the stadium can still be profit maximizing (at least in the short run).

        • Fred 7 May, 2011 at 11:50

          @jroybower,

          If there were 20,000 on the waiting list in Highbury when we were winning things …. and we have since moved to a stadium with 20,000 more capacity …. I think you are completely overestimating the numbers on the waiting list … especially considering we haven’t won squat in the last 6 years (new fans are not exactly flooding in).

          I would be completely shocked if the number on the waiting list is more than a 1 or 2,000 and that is if there is a waiting list at all.

          Also one has to figure in that if entrenched, long-time (some lifelong) fans are giving up tickets there is sufficient dissatisfaction to decimate the numbers on an alleged waiting list. It is human psycology.

          There was a long waiting list 6-7 years ago, because the hardcore, life-longers were extremely passionate about the club and would rather die than give that up …. ie. increasing the “prestige”, scarcity and hence value of being a season ticket holder.

          I reiterate my previous point, if this continues, there is no significant investment in the squad (newbie, wealthy fans dont want to watch no-name mediocre players like Denilson and co.) and we go thru the motions all season again, by this time next year the shit will really hit the fan and the club will have a mighty struggle getting the stadium half full.

        • jroybower 7 May, 2011 at 11:58

          @Fred, prepare to be shocked, shocked!

          http://www.arsenal.com/membership/need-help-/-contact-us/season-ticket-waiting-list

          how about doing just 10 seconds of fact checking (google can be a big help) before you ASSUME anything, because we all know what that stands for….

          now, that being said i don’t completely disagree with you, i think we disagree on the timing, severity, and speed with which it “could” happen.

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  6. stag133 6 May, 2011 at 12:19 Log in to Reply

    The issue really isn’t the price increase of 6.5% on tickets.
    If your team is WINNING, or SPENDING MONEY to try and win by bringing in players… the fans understand and accept it a lot more.

    When the economy sucks, you haven’t won shit in 6 years, and you have major profits EVERY YEAR… regularly SELLING OFF your Best Players for large profits, and NOT buying replacements…
    It’s called pure, unadulterated… GREED.

    The Boston Red Sox raise ticket prices every year… fans aren’t “happy” about it… but every season for the past 7 or 8 seasons, there have been MILLIONS put back into stadium improvements… infrastructure improvements, fan experience improvements (food and concessions)… and buying or trading for name players.
    So, when you get BACK some of what you pay for… its much more accepted by your “faithful”.

    Arsenal built a new stadium. I get it. But when its at the expense of the team on the pitch, it doesn’t make much sense.

    Keep soaking the supporters… keep going against the wishes of the people who PAY YOUR BILLS… the masses will at some point make its feelings known in a BOISTEROUS way… hopefully a way that affects the clubs most important thing = PROFIT. :skeleton:

    • DaAdminGooner 6 May, 2011 at 12:31 Log in to Reply

      @stag133,

      Sorry Stag as much as I would like to see it – it ain’t going to happen. There simply are too many people willing to pay the prices to go and see a professional team play.

      Until you can stop that, sadly, there is very little the fans can do.

      • Fred 6 May, 2011 at 16:08 Log in to Reply

        @DaAdminGooner,

        I think you are wrong on this assumption. Demand can fall VERY rapidly. It happens all the time to even the largest and most successful companies. And Arsenal is not any different from the thousands of other hitherto successful brands that have collapsed – sometimes in a matter of days.

        You can argue that we have not reached that tipping point yet, but you have to consider that the “true” fans who live in North London are being priced out, leaving “less passionate” fans – who might want more bang for their buck.

        We all saw large swathes of empty seats this season (despite the always 60,000 announced attendance). That is proof that a lot of fans are just not showing up and could NOT sell it off for that day.

        The club is pushing very close to the tipping point where the stadium is half empty. For the wealthy fans who are not long-time fans …. and who only come for the “prestige” of holding season tickets at a big club, their ego will be bruised by a half empty stadium, sighs of frustration from the 30-40,000 …. and on-field mediocrity. At that point, they too will drop their tickets.

        I assure you, if this current direction the club is going in (no investments in squad, no addressing of problem areas, etc) continues, by this time next year, the stadium will not only be half empty, there will be Glazer style protests.

        • DaAdminGooner 6 May, 2011 at 17:18

          @Fred,

          Fred, the empty seats you speak of were from – Champs League Group Stages, early Carling Cup matches, and some of the night matches.

          And according to some of the season ticket holders I know – the were not large pockets. A smattering nothing more.

        • stag133 6 May, 2011 at 18:44

          @DaAdminGooner, The season ticket holders I know, and they are LONG TIME holders… sell or TRY TO sell half the tickets they have…
          They can’t afford them any longer, and sometimes they can’t sell them…

        • stag133 6 May, 2011 at 18:42

          @Fred, have to agree with Fred, that his hypothetical is VERY possible. Arsenal are definitely pushing the limits of even the most hard-core support.

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