Jan 12, 2018 in Informative

Econ 2

According to the article, in spite of the hazard of the work strike in 2011 and regulations for the uncapped system in the ultimate year of NFL's labor deal with the players, teams are more prone to elevate ticket prices. Additionally, consistent with the article, the Major League Baseball had a ticket price augment of 1.7% this season, while NFL’s increases typically range from 3% to 7%. At the same time, not all teams have raised the tickets. Some teams reduced own prices. This tells about certain elasticity in the demand.

The NFL teams acknowledge the risks, when it is going about the public perception. Some teams raise the tag on eighty-five percent of tickets at the NFL's fourth-smallest venue, but also preserve the league’s lowest-priced seat: fifteen dollars. Teams are responding to the improving economy, whilst balancing the need to be competitive. Teams are raising the prices quite carefully to be confident that they keep the stadiums full and sell the tickets. Besides, the different price points offer the clients the opportunity to choose. The entire industry of experts do not actually consider the boosts large enough to fuel recoil. Teams often raise prices every three years.

Today, teams have to compete against living rooms with huge plasma TVs. However, many people still believe that there is nothing better than the live experience. Whilst all teams and markets are dissimilar, the league all together should be mindful that the influence of augmented ticket prices might change the long-term health of the entire league if young, lower-, and middle-class football fans maintain to be relegated to own couches. In such surroundings, tomorrow’s generation of football fans could be raised only as customers of the TV product. Loss of football fans due to the augmented prices, which could occur to the NFL, should never be discounted. The losses of generation of fans should concern the professional leagues. It is likely to lose the huge part of viewers as they merely watched the games on TV and never had the opportunity to experience the football fan culture placed in the stadium. It is likely that, in the future, teams could observe analogous losses should pricing tendencies continue, together with the constantly increasing amusement variations that could draw off viewers who have not had the genuine live-game understanding.

It is possible that the demand for NFL football may change in the long-run. The higher ticket prices coupled with the in-home viewing experience may depress attendance. Thus, the demand for professional football will appear to be inelastic.

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