Political Economy of Football
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Fergie Blasts Chelsea Ticket Prices

 

25/09/2005

Chelsea, chastened by their Anderlecht experience, are cutting ticket prices for FA Cup and Carling Cup games, as well as arranging discounts for seniors and juniors for future Champions League fixtures, but this cuts no ice with Sir Alex Ferguson. It may be the latest version of mind games, but the Manchester United manager has chosen to blast Chelsea's ticket prices. Ferguson criticised London rivals, and Chelsea in particular, for bumping up prices when top clubs visit their grounds. The Scot called on the Office of Fair Trading to act after hearing entry to Stamford Bridge can cost £85 when Manchester United visit. 'I believe there should be a ceiling on ticket prices', said Ferguson. 'Ever since I have come down to England, I have never understood how teams in London are able to increase their ticket prices depending on who they are playing. This has been allowed to go on for 25 years - a quarter of a century' (Yes, he's got his arithmetic right there). Ferguson, sometimes described as somewhat irascible, continued, 'This should not be allowed. Why haven't the Office of Fair Trading done something about it? What the hell do they do? If some grocer puts his pound of sugar up a penny more than the guy next door he will probably get fined £3,000 or even closed down.' No one would question Sir Alex's mastery of football strategy and tactics, but he is evidently not a competition law expert. There is nothing illegal about charging what the market will bear and varying the price in accordance with the attractiveness of a specific product. Thus, Ryanair can charge a lower price for a given flight segment than British Airways and charge less for a flight in November than one at peak season. Similarly, two grocers in a parade of shops can compete on the price of sugar, using it as a loss leader if they wish, but if they colluded to charge the same price, that would be illegal. Indeed, the cartel-like status of sporting competitions has always been open to legal challenge, although the law in the United States has been interpreted in a somewhat loose fashion while the European Union is taking a more stringent line (hence the current dispute with the Premiership).

 


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