Why are we willing to spend more on sports?

[Inferno]

Originally Posted by Table 5

Perhaps I'm in the minority, but I'm not willing to pay $200 bucks for a playoff ticket. My limit would probably be around $100-120. Anything more than that, and the value proposition is not really there for me (especially since I always end up spending more at the game on food/drinks/50/50 etc). I'm happy to watch it at home or in a bar.

I'm the same. If the cheapest ticket to game one would have been over $150 I probably would have passed and just watched it at home. The only exception I would probably make is if it was in the finals.

The only time I've ever spent an insane amount of money to go to a sporting event was UFC 129($800) and that was only because it was an historic event(55,000) and GSP was fighting.

[Coach]

Originally Posted by The Yen Man

I think prices for some things have gone down, while things for other things have gone up. I remember my dad buying a super VHS for $1,100 back in 1985. Electronics like TVs, CD players, Walkmans, and video games were way more expensive in the 80s than they are now (comparatively). You also have people spending a ton of money on music and movie mediums (cassettes, CDs, tapes, etc).

Nowadays, you have consumable media that is way is way cheaper (and free if you pirate off the internet). The money people use for entertainment has shifted from one form of medium to another, and hence why more people are willing to pay higher prices for things like sports, concerts, and shows.

That's what I think anyways. I don't have any scientific data to back it up.

I would agree with this and say it's also a reason for increase in movie prices AND quality.

You really have to put out a dynamite movie to get people to shell out $15+ to stare at a screen for a few hours. This means we get big budget IMAX films that look incredible. But it also means that emphasis gets put on special effects and we end up with movies that look amazing, but are poor all-around. George Lucas thinks we will eventually watch moveis like sports (in huge stadiums with crazy high ticket prices and a more interactive experience).

This has a two-pronged effect where it's more expensive to produce theatre quality movies, and so it pushes out the independent films because the distribution is just too expensive when you're not making money off of it. But I think this will lead to (like music) people producing and releasing their own content through the web and open up the range of films we can expose ourselves too, and likely lead to more indy films hitting surprise success.

[Table 5]

Originally Posted by Southside

$200 doesn't go far in the bar anymore either.

These days I'm lucky to drink 2 beers, so no problems here.

Originally Posted by Buff

I was thinking the same as you until I bit the bullet and bought tickets to Game 3 against Vancouver this year. I loved the atmosphere. It helped that the Flames won too. I would totally do it again. I can't wait for my next opportunity.

It can definitely be an awesome time. I share some tickets, so I paid around $80 for a 200 level ticket to Game 4, and for that price it was a no-brainer.

I guess for me $200+ is a lot of money for a bit of a crapshoot. For a ticket to be considered a good value, it needs to be entertaining even if they lose. Imagine going to a total stinker (i.e. that game 7 against Anaheim a few years ago) and having to pay $5-600 for two of you.

[oilboimcdavid]

I think it's because people in general have become more sedentary. I was born in 1989 so I have no personal experiences to share from the 80's but I have been around people that went through the 70's and 80's(friends father while I was roofing with him), the tales he tell me aren't of going to the bar or watching the Stanley cup finals at home, although he probably did both.

The tales he seems to tell me are more action-oriented and even up until 3 years ago when I last hung out with him, he seemed very active and alive for someone who was pushing 50 years old. Heck he was still roofing! So I can see why people in the 80's would be less inclined to spend their money on jerseys and tickets even though they were cheaper. Fast forward to today and you have TV's everywhere(my family never even had a TV in the 90's growing up) and increasing rates of people reporting sedentary lifestyles.

Another factor that perhaps has even more influence than the former factor is that the sport has grown tremendously. Perhaps some of the older members can correct me if I'm wrong but back in the 80's the boards on the ice didn't even have advertising(or maybe it was in the 70's). Now, the NHL promotes the game like crazy, especially the winter classic.

All of these factors in my opinion contribute to increased ticket, jersey sales, people buying into advertising and ideas more strongly. The C of red is a good example of this.

Another factor that could be contributing to this although I don't really want to elaborate on this one, is that back in the 80's their was no electronics, no internet nothing like that. So people were more socially connected. Now their is less of that social connection, and so people will naturally want to connect with others and buying a team jersey so that you fit in with the C of red is way of connecting with others. That and it looks cool on TV! Just my two cents.

[Phanuthier]

Originally Posted by Cleveland Steam Whistle

I think this isn't a sports question, I think it's an everything question. Since (and beginning in the 80"s) the marketing and merechandising engines that work in sports, but also all other entertainment and quite frankly other industries have gone into hyper drive, creating more products and drumming up demand for said products. I think it's really just that, and I don't think it's limited to sports. I think these days, whatever your passion or hobby is, you likely spend a lot more on it than your say your parents or grandparents did on their hobbies or passions back in the day.

Also, as for the lack of jersey's in the 80's in the C of Red. People also need to remember that this team only arrived in 81, and like it or not, it takes time to build a true fan base. Many Flames fans in the 80's were Habs or Leafs fan's first, because that's who they grew up cheering for, it takes time to weed that out of a market.

Great point here. I think glorified media (think: dramatic music!) plus internet/twatter/CP/HF/etc really engulfed us into a whole lifestyle obsession, versus before it was catching what small amount of news I could get in the Calgary Herald and Flames at 5 with Peter Mahr.

Perfect example: Look at the growth of the WJC

[Southside]

I was in the house on Saturday and you will never get that vibe watching on television. I will never forget that game. Priceless. I don't know what my breaking point on prices would be, but we're not there yet!

[polak]

More people + Same seats = More demand.

The internet has created a massive amount of free or nearly free entertainment. Even 15 years go, if there was nothing on TV and it wasn't nice out you were spending money on something. Basically, you had to stretch out your entertainment budget more then you do today.

Increased acceptance in using personal credit to fund day to day, zero reward purchases.

Social media and globalized markets make sports a world stage, more so then ever before. Means there's more exposure to it and thus higher demand.

[Resolute 14]

Originally Posted by Table 5

Perhaps I'm in the minority, but I'm not willing to pay $200 bucks for a playoff ticket. My limit would probably be around $100-120. Anything more than that, and the value proposition is not really there for me (especially since I always end up spending more at the game on food/drinks/50/50 etc). I'm happy to watch it at home or in a bar.

You are almost certainly in the majority, otherwise ticket prices would be even higher. All the Flames need is 20,000 people out of 1.2 million willing to pay.

For myself, I was thinking yesterday that I have spent over $12k on tickets, food, parking, c-train, jerseys, etc. since the last time we were in the playoffs. (And I am on the cheap end of this scale.) Not including the various flights and trips I've taken to other NHL cities.

Game 6, all by itself, was worth it all.

[Phanuthier]

Originally Posted by Table 5

Perhaps I'm in the minority, but I'm not willing to pay $200 bucks for a playoff ticket. My limit would probably be around $100-120. Anything more than that, and the value proposition is not really there for me (especially since I always end up spending more at the game on food/drinks/50/50 etc). I'm happy to watch it at home or in a bar.

Maybe you are also older and more financially conscious with budgets

Same thing for me, though I would go to any games when I am in Calgary or pay a small fortune to go to a Flames playoff game (can't this playoffs though cause of immigration visa concerns ) but for the first time this year, I didn't go to any games when the Flames played the Sharks. My record when I go to see the Flames play the Sharks is 0-9 (3 blowouts), when I watch on TV they are something like 4-2, and logistics to get off work in time to haul ass through traffic (crappy traffic here) to get there in time for puck drop... and then pay whatever ticket price for it? Just got really lazy.

I'm tempted to go to a Anahaim game since I'm a few hours drive away... not sure yet though.

[nfotiu]

Originally Posted by Macho0978

Salary Cap plays a part in it too. More likely that we can compete long term and have guys like Monahan, Gaudreau, Brodie, Bennett for their entire careers has created more excitement towards hockey

That's a big part of it. Not just the cap, but I think the whole culture of the NHL shifted to allow Canadian teams to be more competitive. There used to be a misguided fantasy of getting a massively overpriced US TV deal. At some point, the NHL (and the Candian owners) realized there is more money to be made from hockey mad Canadians. The cap kind of forced the Canadian teams to spend more money in a way, and thus have to raise prices to be able to afford those extra salaries. The funny thing is, a team like the Flames would have probably been a lot more successful by just raising ticket prices and raising salaries in the 90s as long as they could have turned that cash into a good hockey team. The NHL has exploded in popularity in Canada. In a city like Calgary that is now twice the size, the nhl is still the top game in town, and is a hot ticket when they are doing well.

On the other hand, Vancouver has a tough time selling out at these ticket prices, so who knows how long they can get away with charging more and more.

[DownhillGoat]

Originally Posted by Phanuthier

I'm tempted to go to a Anahaim game since I'm a few hours drive away... not sure yet though.

I'm not sure how that's even a decision. I'm tempted to go to a game in Anaheim and I'm a few hours flight away...

[Eric Vail]

I think we live in more affluent times.

The number of people taking trips to Hawaii, Mexico, Vegas, Europe, Asia, etc. is far greater than it was in the 1980s. Back then summer vacation was driving to Saskatchewan to vist the relatives. Now it seems like everyone is flying off somewhere.

Back in the 80s, there were far more families living off of one income which meant far less spending money on things like entertainment.

I agree this isn't sport specific. Concert ticket prices have similarly increased. In 1981, it cost $10 for a day in Disneyland. Now it is $92.

[polak]

Originally Posted by Eric Vail

I think we live in more affluent times.

The number of people taking trips to Hawaii, Mexico, Vegas, Europe, Asia, etc. is far greater than it was in the 1980s. Back then summer vacation was driving to Saskatchewan to vist the relatives. Now it seems like everyone is flying off somewhere.

Back in the 80s, there were far more families living off of one income which meant far less spending money on things like entertainment.

I agree this isn't sport specific. Concert ticket prices have similarly increased. In 1981, it cost $10 for a day in Disneyland. Now it is $92.

Again, I think that has more to do with people being more willing to use credit for purchases then ever before.

[Table 5]

Originally Posted by Phanuthier

Maybe you are also older and more financially conscious with budgets

Ha, maybe. But when I was younger, I was too poor for it to even be a decision. Game 4 was only my third ever playoff game (last one was 2004, before that it was Iggy's first NHL game). I actually went to more games this year (about 6) than I have ever gone in any previous season.

I'm tempted to go to a Anahaim game since I'm a few hours drive away... not sure yet though.

I was much more willing to spend money and effort on the Flames when I lived outside of Calgary. I had no issues with travelling Jersey or LI, or Philly. When you can only see them once every few years (at that time they came around every 3 years or so), you tend to go out of your way to make it happen.

[Geeoff]

I think what you're seeing here is that the owners have gotten smarter. They probably could have gotten people to pay more for seats back then and certainly could've sold jerseys had they marketed them better.

[CliffFletcher]

Originally Posted by Resolute 14

The most probable answer is that we always were willing, but the owners hadn't realized how far they could push it yet.

I can see ownership misjudging price pain points a little, but by 500%? I have a hard time believing owners could have charged $150 for Flames tickets in 1993, but they sold them for $30 because of a miscalculation. That would require a remarkable degree of incompetence on their part, and on the part of the sales people in 20+ other NHL cities.

Originally Posted by Kavvy

It may not account for the entire change, but population has increase, and quantity of seats has remained constant.

Assuming all other factors remain constant, your supply and demand equation just bent towards increased prices.

But how does that explain the 500% increase in tickets prices in Winnipeg, which has hardly grown at all in population in the last 20 years?

Originally Posted by The Yen Man

I think prices for some things have gone down, while things for other things have gone up. I remember my dad buying a super VHS for $1,100 back in 1985. Electronics like TVs, CD players, Walkmans, and video games were way more expensive in the 80s than they are now (comparatively). You also have people spending a ton of money on music and movie mediums (cassettes, CDs, tapes, etc).

Nowadays, you have consumable media that is way is way cheaper (and free if you pirate off the internet). The money people use for entertainment has shifted from one form of medium to another, and hence why more people are willing to pay higher prices for things like sports, concerts, and shows.

That makes a lot of sense to me. Furniture, TVs, movie rentals, CDs, etc. used to be way more expensive compared to today's prices. People were happy to pay 70% the cost of a Flames game for a CD. Today, the relative value of those two products has diverged enormously. Concert tickets relative to recorded music have gone the same way.

So yeah, I think people today spend much less on physical items, so they have more money to pay for experiences, and have come to value experiences higher.

Originally Posted by getbak

As far as the jersey thing is concerned, I don't know if it's as much a money thing as a general change in society. 30-40 years ago, it was usually only children who wore jerseys to games, and adults still dressed up to go to games.

Yep. It would have been really weird to see a grown 40 year old man wearing a Flames jersey in 1989. A 40 year old woman wearing one would have been regarded as comical.

Originally Posted by Eric Vail

I think we live in more affluent times.

The number of people taking trips to Hawaii, Mexico, Vegas, Europe, Asia, etc. is far greater than it was in the 1980s. Back then summer vacation was driving to Saskatchewan to vist the relatives. Now it seems like everyone is flying off somewhere.

Back in the 80s, there were far more families living off of one income which meant far less spending money on things like entertainment.

I agree this isn't sport specific. Concert ticket prices have similarly increased. In 1981, it cost $10 for a day in Disneyland. Now it is $92.

Yeah, dual-income households are probably another factor. Back in the 80s, an engineer made a pretty good salary (though not as good as today). However, he probably had the only income in the household, or his wife earned very little as a receptionist or stationary clerk. Now professionals marry professionals, both keep their jobs, and that leaves a lot of discretionary income for play.

[getbak]

Something that came up in one of the ticket threads is how much higher prices seem to be from 2004. Someone brought up a good point that the technologies that exist now make it a lot easier for the Flames to know exactly how much the market will bear for prices.

The "secondary market" used to be a shadowy world of greasy guys standing by the C-Train platform with handfuls of tickets and it was difficult to know how much they actually sold each ticket for. Now, with sites like StubHub and Ticketmaster's own resale site, teams can get a good gauge of what people are willing to pay and set their prices closer to the high-end.



Another big factor is the "premium" seating options that exist now that really didn't 30+ years ago. In the older buildings, the only price difference was in how close to the ice the seats were and how close to centre they were. I believe the Habs have more than 20 different price levels at the Bell Centre now.

[polak]

Originally Posted by CliffFletcher

Yep. It would have been really weird to see a grown 40 year old man wearing a Flames jersey in 1989. A 40 year old woman wearing one would have been regarded as comical.
.

Yeah I remember begging my parents for a hockey jersey when I was a kid and you literally couldn't find them any where and then when they did find one, it was an Oilers jersey. Being a FOB polish kid whose parent knew nothing about hockey I didn't think anything of it (this was also the late 90's so the Flames weren't a big deal). Even the kids at school liked it simply cause it was a jersey.

Don't think that would happen today.

[Schraderbrau]

It's a sign of the times. When I was young my parents did well, we had money, yet we didnt spend it (I know we were never hard up but I also never got the things my kids get now) back in those days (the 70's through to the late 90's) most people were money savers. At some point along the way we turned into a generation of spenders and if people are willing to spend that kind of money on a ticket then you know they are going to charge us for it.

Oh boy I sound like an old timer. Ranting about the good old days and back then.....

[polak]

Originally Posted by Schraderbrau

It's a sign of the times. When I was young my parents did well, we had money, yet we didnt spend it (I know we were never hard up but I also never got the things my kids get now) back in those days (the 70's through to the late 90's) most people were money savers. At some point along the way we turned into a generation of spenders and if people are willing to spend that kind of money on a ticket then you know they are going to charge us for it.

Oh boy I sound like an old timer. Ranting about the good old days and back then.....

Good ol' times? Sounds worse.

Our generation lives more for memories and the "now" then saving for the future or well being of their kids. I think I have maybe one or two friends that might currently want kids and even with them I'm not 100% sure. We care more about ourselves and getting the most out of our lives so we push off stuff like that.

Is that bad thing?