Top clubs hike ticket prices

Arsenal and Liverpool have both increased ticket prices by 6.5 per cent which is more than the current rate of inflation whether one takes the CPI or RPI measure, a move that has disappointed some fans.  Of course, 2.5 per cent of the increase is the result of the rise in VAT, a government policy decision outside the control of the clubs.

Arsenal and Liverpool have both increased ticket prices by 6.5 per cent which is more than the current rate of inflation whether one takes the CPI or RPI measure, a move that has disappointed some fans.  Of course, 2.5 per cent of the increase is the result of the rise in VAT, a government policy decision outside the control of the clubs.


In the case of Liverpool they had cut the price of under-16 admission to £15 in an attempt to prevent young fans being priced out of Premier League football.   Season ticket prices range between £725 and £802 which is, of course, reasonable compared with the prices charged at top London clubs.


How fans react to such increases depends on the elasticity of demand in economics jargon, i.e., how much changes in prices affects the purchase decision.    The normal assumption is that demand for tickets at a top club is relatively price inelastic, i.e., you can increase the price quite a lot without affecting demand very much.


That particularly applies to season tickets which are what economists call a ‘bundled’ good – you are buying a ticket, but also the right to sit in a particular seat you like often with people you know (although you may not like all of them).   There is a convenience factor as well.


Tickets sold for particular matches (‘walk up’ sales), especially the less attractive ones, are more price responsive and clubs increasingly reflect that in their pricing structures.   This is likely to be even more necessary as take home pay is increasingly squeezed, leaving less money for discretionary leisure purchases.   It’s also probably the case that season tickets lower down the leagues are more responsive to price.


I pay just £250 a year for my League 1 season ticket in a good position, but that is offset by the rubbish that one often has to watch.   My ice hockey season ticket cost £235 this year.   I haven’t got the final price for my third tier non-league season ticket, although it may be around £180 which is not that much less.   I don’t get a designated seat, but I do get a cup of tea indoors and the biscuit of my choice at half time.