How high can MLS ticket prices go?
2009-10-13 02:26:00
There have been a few stories rattling around the blogosphere lately about how the cratered economy has decimated fans' ability to pay ever-spiraling ticket prices for professional sporting events.Yesterday the always biting Field of Schemes linked to Wright Thompson's experience in the absurd seats at Yankee Stadium, and highlighted an interesting statistic from the piece:
A recent poll discovered an unsettling trend emerging for the first time. American families whose household income is $75,000 or less now have zero dollars of discretionary income. According to Luker, that means about 75 percent of the country can never responsibly afford to go to a live professional sporting event.
It's true that about 75% of households earn 75k or less, but determining discretionary income is much more dicey. Even so, quibbling over it might not matter because
. . . [spectator sporting events] are designed to be affordable only to those making $150,000 or more a year.
Which is a disturbing proposition.
Along the same lines, today the Cleveland Plain Dealer linked to a Rasmussen Report poll that said:
Among Americans "who follow sports at least somewhat closely," 64 percent say ticket prices for professional sporting events have kept them from going this year . . .
I do wonder what the percentage of American who follow sports somewhat closely is, and how often those people attend games.
MLS tickets have a reputation for being affordable, particularly when compared to certain soccer clubs abroad. And if you look at the MLS tickets aimed at the proverbial family cheapskates, packages with food range from $13-15 a person at a Chivas or Houston game respectively, to $19-25 a person for a hotdog, ticket, and soda at most venues. Of course, add in parking, travel, and even more food when that hot dog doesn't cut it.
Teams will always have promotions like this, but for the league to "maximize its revenue growth potential," and yes, raise the salary cap, ticket prices will need to go up. And in this environment I'm not sure how that can happen.
The danger for MLS is that it raises ticket prices to the point where too many fans get priced out of the market before the league has a critical mass of high-paying fans to sustain itself. As for high ticket prices killing a league with high demand for seats, it hasn't happened in recent memory, but stay tuned.
I suspect I will revisit this topic in the near future.
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