Keeping Fans in the stands is getting harder to do

Claire Viall 10.6.15

In 2013, the MLB’s total game attendance was down by 417, 192 people compared to 2012 attendance.

This isn’t just a problem for baseball, attendance is down across all live sporting events, except for hockey.

Even the New York Yankees have seen a decline in 2,500 fans per game.

People aren’t going to live sporting events- Why?

ARTICLE OVERVIEW

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Q*Except for Hockey.

DEMAND IS DOWN

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Bad Weather

Traffi c (Time)

Economic Recovery

Price of Tickets

Home Theaters

FACTORS IMPACTING DEMAND

Some teams off er discounts:

New York Yankees offered half off tickets through Groupon

NBA’s Phoenix Suns offered a money back guarantee on tickets

Demand is going down, teams are offering cheaper tickets prices.

HOW IS THE INDUSTRY RESPONDING?

However, a lot of teams are adding other incentives to make it a luxury experience:

Mini Theme parks, concerts, fireworks at stadiums

Offering sushi, gluten free and vegetarian food (Fancy salads)

Heritage Nights and Religious Nights

HOW IS THE INDUSTRY RESPONDING?

TICKET PRICES ARE INCREASING

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“The love of sports isn’t going away in this country but I do think the decline in attendance will keep happening…most people just don’t have that type of discretionary income anymore to spend on sports”

FANS WOULD RATHER WATCH FROM HOME

Both the income and substitution effects are at play here.

People have less money to spend on sporting event tickets as the price goes up. (income effect)

As the price of going to a game rises, the relative price of watching from home (even if you were purchasing a new TV, hosting a party, etc.) falls (substitution effect)

Watching from Home

Attending a game

Have a winning team. Any Questions?

THE ANSWER?