The NFL = Too Expensive?

[Dave Gray]

This is related to the Central Florida thread just posted, where the Jags may black out 10 games this year.

I think that the NFL might be pricing themselves out of the market.  It's partially the cost, but it's also the opportunity cost and what you can get for much, much less.  At this point in my life, it's probably a more enjoyable experience to watch the game on TV.  Nothing's like being at the game in person, but after a ticket, gas, parking, and overpriced food, you're looking at about $150 bucks for a couple for 1 game.  It's out of control.

At home, you can enjoy the game, have a cookout and beer for about $25.

Not to mention that it doesn't eat up an hour and a half of travel time on both ends.

I question whether the NFL is making the correct long-term business decision.  Why don't they have less expensive seats, but make sure that they're all filled?  I think the least expensive seats in Dolphins stadium are over $50 bucks, for a single game ticket.  That's pretty ludicrous, if you ask me.

I ditched my tickets because of price increase, and although I'm going to a few games this year, I'm regretting the choice to do even that.  I don't really think it's worth what you get for it.

[Phishfan]

I agree that prices are out of hand. The whole NFL experience is overpriced (all the way to what is costs to manage these teams) which is why we will very likely have a lockout after next season.

[jtex316]

The NFL is making the right business decision because as long as folks keep on selling out stadiums and buying a shit load of merchandise and food and paying for parking, the NFL will keep charging what it charges. This will only change once enough fans stop going to games...but they keep selling out every single game.

And if there's a market that just isn't supporting football (Jacksonville), the owner will (should) be smart enough to pick them up and move them to some city that will sell out (Los Angeles).

[fyo]

The whole NFL experience is overpriced (all the way to what is costs to manage these teams) which is why we will very likely have a lockout after next season.

The NFL, as a whole, is generating a boat-load of revenue. The only question is the distribution of the cash. The CBA opted out of by the owners (which could lead to a lockout), was based on the assumption of easy and cheap refinancing of stadium debt. With the sub-prime crisis and subsequent general economic crisis, stadium debt is MUCH more expensive to finance. The deal already gave the players a huge amount of money, but since what they get is a percentage of the total REVENUE, the owners were left with no choice but to opt out; the revenue pie stayed the same (or even increased somewhat), but the expenses for the owners sky-rocketed.

Of course, different teams have different stadium deals and debts, so the effect on owners isn't exactly uniform across the league.

Considering that one of the few ways owners can make more money is by increasing stadium revenues, there's absolutely no question they are doing everything to maximize those. So, to answer Dave's question: No, "the NFL" (individual owners) aren't pricing themselves out of anything. They are maximizing revenues, even if that means selling fewer but more expensive seats / packages.

[Brian Fein]

Dave, keep in mind how much of that is written from YOUR perspective.  A lot of what you wrote varies for a lot of people. 

For me the drive is 30 minutes to and from the stadium, not and hour and a half.  Lots of people live even closer.  And the dollar amount you mention is MINIMUM - lots of seats will cost you $100 just to walk in the door.

You don't have to buy food, they let you come in with a sealed bottle of beverage, and almost everyone tailgates in the lot beforehand, thus not needing to buy overpriced food inside.  Time aside, you and the misses could attend a Dolphins' game for under $80, if you wanted to.

The cheapest seats in Land Shark Stadium are $35, I think, but they're in the sky.  Like the last 10 rows of the upper deck end zone, or something.  Crappy seats but that's why they're cheap.

While I don't disagree that the price is outrageous, there's a reason teams offer $100 million contracts to guys like Albert Haynesworth.  Do you really fathom how much $100 million is?  You could buy season tickets in my section for 4771 people for every season until you're 90 years old.  Or if you wanted to splurge, that number becomes 2054 people in the lower bowl goal-line.  Until you're 90...

The real issue here is why do the players need to get paid so much money.  That's why tickets are expensive.  With "Franchise tags" and such contract clauses, the NFL is set up to ensure player salaries are constantly increasing.  That money has to come from somewhere...

[fyo]

With "Franchise tags" and such contract clauses, the NFL is set up to ensure player salaries are constantly increasing.  That money has to come from somewhere...

Yes. ESPN.

Tickets are priced according to what people will PAY. It's capitalism 101.

Phishfan would have to pay $50 to go see his alma mater play CU (well, if paid "public" price, anyway). The game against Liberty is (understandably) cheaper, but he'd still have to fork over $45.

[Defense54]

This is related to the Central Florida thread just posted, where the Jags may black out 10 games this year.

I think that the NFL might be pricing themselves out of the market.  It's partially the cost, but it's also the opportunity cost and what you can get for much, much less.  At this point in my life, it's probably a more enjoyable experience to watch the game on TV.  Nothing's like being at the game in person, but after a ticket, gas, parking, and overpriced food, you're looking at about $150 bucks for a couple for 1 game.  It's out of control.

At home, you can enjoy the game, have a cookout and beer for about $25.

Not to mention that it doesn't eat up an hour and a half of travel time on both ends.

I question whether the NFL is making the correct long-term business decision.  Why don't they have less expensive seats, but make sure that they're all filled?  I think the least expensive seats in Dolphins stadium are over $50 bucks, for a single game ticket.  That's pretty ludicrous, if you ask me.

I ditched my tickets because of price increase, and although I'm going to a few games this year, I'm regretting the choice to do even that.  I don't really think it's worth what you get for it.

I couldn't agree more. A Few years ago the economy was doing much better. Money was not nearly as tight. Now , Everyone everywhere is offering bargains to get peoples buisness, except for the NFL. They are scaring people in my neck of the woods about laying off police officers, Furloghs and wage freezes. No way I'm going to a game this year unless I land a pair of tickets for free. And even then I'll shell out $100 before the day is over easy.

[Spider-Dan]

The NFL will start lowering prices when stadiums stop selling out.

It really is that simple.

[SCFinfan]

Maybe their should be a public option where we pay an extra percentage of income to taxes, and in return receive at tickets to at least 5 games a year, paid for by the gov't.

[YoFuggedaboutit]

Maybe their should be a public option where we pay an extra percentage of income to taxes, and in return receive at tickets to at least 5 games a year, paid for by the gov't.

Why do you have to bring politics into every thread? 

[SCFinfan]

It's just meant to be a joke. Sorry sorry.

[Dave Gray]

The NFL will start lowering prices when stadiums stop selling out.

It really is that simple.

Actually, I don't think it's that simple.  Because the players are unionized, if the NFL sells less tickets and makes less money, the players will still demand their current salaries and then we have problems like lockouts and strikes and such. 

[fyo]

Actually, I don't think it's that simple.  Because the players are unionized, if the NFL sells less tickets and makes less money, the players will still demand their current salaries and then we have problems like lockouts and strikes and such. 

So what you're saying is that the NFL won't optimize stadium profits, because they have a fixed cost in a different area?

That makes absolutely no sense.

The individual owners will try to earn as much as they can from their stadiums. If lower prices and more people result in a bigger profit, then that's what they'll do. If not... don't hold your breath.

[Dave Gray]

It's not like I'm surprised that the costs are high, but I think it's a model for problems later.  From a business perspective, you make as much money as you can.  However, I don't think that good for the NFL as a whole.

[myami54]

I want to throw merchandising into this discussion as well. T-shirts, sweat shirts and other apparel is ridiculous.