Soccer is an important sport in the United Kingdom. In 2004/5 the average attendance at a soccer game was 15,885. However attendance is not even across every team. The average attendance figures for a Premier-League team the average was 33,885 and for the 3rd division teams this was 4,500 (Football Economy, 2005). The staging and support of soccer teams takes resources and the higher the level of attendance, the higher level of income. Higher levels of attendance, in the past, have also indicated better financial performance as complimentary good, such as soccer jerseys and accessories have been sold more often. The levels of attendance over the last ten years have been gradually increasing, in 1994-1995 the average attendance at a premiership game was 24,294, and at a 3rd division game it was only 3,384 (Football Economy, 2005). The increases in attendance should indicate increased receipts and a better financial position for the soccer teams, but in recent years a number of teams have been facing large deficits. The gains have not been evenly spread; there has often been an assumption that it is the performance of a team that will impact on if they see an increase or a decrease in attendance, but some teams, even when performing well may still be struggling. This is especially true for smaller soccer teams and the ticket sales may not be only dependent on the performance of the team. The main purpose of this report is to look at the way ticket sales are arising, and what influences soccer fans to goto the game.
Literature Review
The traditional approach has been to assume that the demand for tickets to a soccer game will be influenced by the performance of the team. As the team performs the demand for the tickets will in...
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By abolishing the salary cap, the Department of Justice ruling has had a substantial impact on the competitive balance of the NFL. Because the salary cap was removed, over the past 10 years teams from big markets, or who have deep-pocketed owners, have been spending money rampantly. Small market teams have been marginalized to a point of having very little chance to win, as they cannot afford to spend freely on talent, as they do not have the income potential to make money. This progression is similar to what we have seen over the years in professional soccer, specifically in the UEFA champion’s league and Spain’s. In the UEFA Champions League, 12 teams have combined to win 48 out of the 58 championships, or 82.76% of championships. There has been such a lack of Competitive Balance in revenue splitting and salary cap free soccer that even among the best teams in the world there is great disparity. An even more extreme example can be found in Spain’s La Liga, where the top 2 teams have won 65.85% of the league’s 82 championships and the top 5 teams have won 93.9% of the league’s championships. This lack of competitive balance is certainly caused by a lack of salary cap, as the top 2 teams spend up to €190,000,000 per year on players while lower level teams spend up to €14,000,000 per year on players. The NFL’s continued revenue sharing, however, has made it so that disparity in the league isn’t quite as large as it is in professional soccer. Despite these effects of Revenue sharing, the lack of a sal...
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In the 2006 season, Oakland had a salary of just over $62 million and still finished with a better record than the Boston Red Sox, whose payroll was double that of the A's. Based on the economic model developed in our textbook on pages 168-170, the Oakland A's aren't supposed to field a competitive team year after year because the author Rodney Fort says that a large market team will always win more than a small market team. Fort argues that with the existence of large and small market teams there is revenue imbalance because the large market team brings in more revenue than the small market team. Revenue imbalance then causes competitive imbalance because the large market team will buy more talent than the small market team and winning percentage is described as a function of talent. As a result of buying more talent, the large market team will have a higher payroll, so not only does revenue imbalance cause competitive imbalance but it also causes payroll imbalance.
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Sports are a great business that creates great revenue for organizations that are in the major leagues. In this particular industry, revenue is generated through the sales of tickets to the game spectators and loyal team fans. Baseball, hockey, basketball, football and other sporting teams playing in their corresponding teams gain a substantial percentage of their revenues from the sale of attendance tickets. Many studies have been conducted to establish the factors that determine game attendance in different leagues. One of the most important findings is that, despite increase in ticket prices over the years, the attendance demand has not decreased.
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One of the many positives externalities that professional sports teams can generate is increasing the city’s revenue. With a city having a professional sports team, the people that
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Money made the world change, both in socially and economically. From sports to politics, money has impacted our lives in any way. The question for my research is: how money changes soccer from the 90s to the present? I will divide my essay in three parts: sport, political and social. I think that money helped the sport to grow, but at the same time the corruption grew. I am sure that I can do an in-depth analysis about it. The only thing I see on television is soccer, no matter what country or what team is playing I enjoy it. I am not a person who reads much, but most of the books that I have read are about soccer’s history. My family is passionate to soccer, so I'm used to hear stories of how was the soccer before compared to now. In fact, I think that I have the knowledge to write an essay regarding on the comparison of soccer’s history and how money change the sport.
On a crisp afternoon in late September, thousands of ordinary people drive hundreds of miles from home in order to witness what they believe will ultimately be a sporting event that will go down in the record books. As fans enter the packed parking lot, their eyes light up as the enormous structure that is known as Arrowhead Stadium stands starkly above them against the autumn sky. When they come to a stop in the parking lot, their clocks reads 11:00, two hours until kickoff. They excitedly exit their vehicles and open their trunks to reveal grills, and great times ahead. These ordinary people begin to continue the legacy of pre-game tailgating, a rich tradition that encourages fans to meet up with total strangers with only one thing in common: Football. Yet, what seems on the surface to be simply about an experience, of watching great plays and rooting for one’s team, is in fact a complex business arrangement which is based on the concept of making money. Indeed, “Since professional sports began, running a team has always been a reasonable investment” (DeMause VII). Just as each team implements a certain series of plays to score, each franchise implements a series of strategies to draw in the average fan. What may seem like a satisfying Nathan’s Hot Dog, and an ice cold Pepsi in the fans’ eyes, is the product of complex calculations about profitability made in a business office nowhere near the events on the field. Professional sports generally, and the National Football League specifically, are not what they seem to be from a fan’s perspective.
“Labour Markets in Professional Sports” was written by Sherwin Rosen and Allen Sanderson from The Economic Journal, Vol. 111. No. 469 (Feb., 2001), pp. F47-F68. Sherwin Rosen (September 29, 1938 – March 17, 2001) was an American labor economist. He had ties with many American universities and academic institutions including the University of Chicago, the University of Rochester, Stanford University and its Hoover Institute. Rosen was chair of the Economics department at the University of Chicago. Rosen was a pioneer in the study of wages and why they vary. Allen Sanderson is a Senior Lecturer in the Department of Economics at the University of Chicago. A graduate of Brigham Young University and the University
Nowadays, a growing number of people argue that whether modern soccer should become more related to commerce, because the fund is becoming the major criterion to estimate the value of a club and coming from various sources, which include advertising, tickets, finical support and so on. Although some people will say that overfull commercial atmosphere will be the toxic for soccer game, however I think that the combination of soccer and commerce will be the paradigm of modern soccer’s revolution.
"Finally, the one pervasive element in the empirical analysis is the significance of a Canadian location. The "hoser" variable is simultaneously a proxy for Canadian sporting ...