Technological advancements have significantly altered the way in which many industries operate. In particular, as technology progresses, moving society towards media-based forms of acquiring goods, the ticketing industry has undergone drastic changes. These changes provide sports fans with new options for purchasing tickets. Sports tickets have been ‘scalped’ since the mid-1800s, typically on the sidewalks surrounding stadiums. These scalpers sought to make a profit off of demanding fans that had not been able to obtain tickets prior to the event. Over the past decade, this act of ticket reselling has evolved immensely with the widespread use of the Internet. Thus, with the popularity of web services like StubHub, the secondary ticket market has become larger than ever. While many fans believe that the strong secondary ticket market serves to benefit consumers as well as the ticket industry as a whole, this is not the case. …show more content…
Often, season ticket holders are “willing to lose money on 80% of the games with low demand in hopes that [their] investment makes it to the playoffs where the real money can be made” (Lawrence, 2014). This willingness to undercut box office prices draws fans in with tickets that are significantly cheaper than those offered by the teams directly. This idea has become ingrained in society; “fans have been conditioned to not even think about checking the box office…Instead, fans have been trained to find one of the hundreds of websites out there that are doing their best to get fans the cheapest ticket possible” (Lawrence, 2014). In this way, these brokers possess exceedingly more marketing power than the primary ticketing industry due to the low prices they offer and the established assumption that these prices are the best
John Culhane reports that DraftKings employee Ethan Haskell has taken unfair advantage of the information he receives as an employee. As an employee of DraftKings, Haskell is justly forbidden from participating in DraftKings fantasy contests. However, there is nothing stopping him from entering contests in FanDuel, which functions under a system very similar to DraftKings. On September 27th, Haskell revealed that he had insider information, and that he was the “only one with this data.” With this data, Haskell outscored over 220,000 people in a contest that week and brought home $350,000. Culhane reports that many at DraftKings make more money on FanDuel contests than from their own salary. This is absolute corruption. Hundreds of thousands of people are losing their money to people who should not be allowed to participate in the contests. This calls for more regulation and the banning of employees from playing in their competitor’s contests. Many believe that those who work for one of the companies do not have an unfair unadvantage. Rather, they are just very knowledgeable in fantasy football and, after working with the game constantly, know the smartest way to play the game. This logic, however, is wrong. The evidence of Haskell beating out over 220,000 participants cannot be a coincidence. The corruption of FanDuel and DraftKings employees using insider information is one reason why daily fantasy sports need to be regulated; regulation will secure safety and fairness for all
Siegfried, J., & Zimbalist, A. (2000). The economics of sports facilities and their communities. The Journal of Economic Perspectives, , 95-114.
After a few days of smoke inhalation, large volumes of beverage consumption, and the proverbial and literal beatings you received from slots and poker tables, you begin to rethink your version of paradise. All hope is not lost, though; the NFL playoffs are on and your team is about to start. Hoping to salvage what little dignity and money you have left, you grab your favorite team's jersey and head to the casino's sports book. Back straight, chin up, you make your way to the counter and place a wager: "$300 on the Steelers, please."
This is just one example of the manipulative business manner in which Ticketmaster operates. Ticketmaster...
James Baldwin is described in the film James Baldwin – The Price of the Ticket as a man who resisted having to deal with the racism of the United States, but eventually found that he had to come back into the country to help defend the cause of civil rights. Baldwin was an American writer who was born in 1924 and died in 1987. He wrote a wide variety of different types of books, examining human experience and the way in which love was a part of that experience. However, he was also very active in the civil rights movement of the 1960s. He was a voice that helped to bring about understanding, even if sometimes it was by slapping White America in the face. His message
Mihai, Alexandru. “The Strategic Sports Marketing Planning Process.” Manager. Manager Journal, 2013. Web. 6 December 2013.
Abstract: The Stadium construction boom continues, and taxpayers are being forced to pay for new high tech stadiums they don’t want. These new stadiums create only part-time jobs. Stadiums bring money in exclusively for professional leagues and not the communities. The teams are turning public money into private profit. Professional leagues are becoming extremely wealthy at the taxpayers expense. The publicly-funded stadium obsession must be put to a stop before athletes and coaches become even greedier. New stadiums being built hurt public schools, and send a message to children that leisure activities are more important than basic education. Public money needs to be used to for more important services that would benefit the local economy. Stadiums do not help the economy or save struggling towns. There are no net benefits from single purpose stadiums, and therefore the stadium obsessions must be put to a stop.
Duhigg evokes that “Target began building a vast data warehouse that assigned every shopper an identification code-known internally as the ‘Guest ID number’-that kept tabs of how each person shopped” (187). Every time one goes shopping, they share intimate details about their consumption patterns with retailers. Many of those retailers are studying those details to figure out what consumers like, what they need, and which coupons are most likely to make them happy. Sports Authority provides this “Guest ID” method by offering their consumers to join free rewards program called “The League”. They encourage them to create this membership and give them benefits such as coupons and update them on the newest discounts. Also, the rewards program is based off a point system and when one has earned a certain amount of points they send them a gift card to spend however they wish. Though, what the consumers don’t know is that by applying for their free rewards program is that their collecting data and constructing analysis to make them into loyal
The Toronto Blue Jays baseball team was founded in the 1970s and experienced support from the fans during the 1970s and 1980s. In 1992 and 1993, the Jays won back-to-back World Series, yet in 1994, the team faced setbacks. The team had a losing streak, there was a major league baseball strike, and no World Series was played. At the same time, gambling came to Toronto, and the team had to compete for the fan's time. Also, players' salaries skyrocketed at a time when the Canadian dollar fell in value. How could the Toronto Blue Jays adjust ticket prices to improve financial performance and increase fan attendance?
Over the past twenty years, many things have changed and evolved to impact our economy. From cell phones to music to media, we are all constantly affected. The most influential aspect though, in my opinion, has been America’s biggest game, the Super Bowl. The Super Bowl by all means effects our economies in every way, shape, and form. The sport is one of the most complex social institutions in American Society. Sports effect major institutions of society, including: the mass media, politics, religion, education, and family. The Super Bowl gathers thousands of viewer’s attentions including those who do not usually watch the regular season games.
Sports Directs current strategy has proven successful during the 2008 global financial crises. Its discount culture has provided them with the ability to develop a low-cost competitive advantage. Through effective decision-making and superior efficiencies, they have emerged as the UK’s leading sports retailer, at the expense of former rival JJB. However, as the economy begins to recover, in order to sustain their competitive position Sports Direct must evolve to cater to an emerging consumer trend.
Economics teaches that charging extra makes a profit. To successfully scalp tickets, the ticket price selected by management has to be less than the ‘market clearing price.’ Management saves money on advertisement when long lines bring in publicity. Big ticket events are where scalpers get the most business. Scalping would no longer be an issue if the box office sold them at prices each individual was willing to pay.
Sports are one of the most profitable industries in the world. Everyone wants to get their hands on a piece of the action. Those individuals and industries that spend hundreds of millions of dollars on these sports teams are hoping to make a profit, but it may be an indirect profit. It could be a profit for the sports club, or it could be a promotion for another organization (i.e. Rupert Murdoch, FOX). The economics involved with sports have drastically changed over the last ten years.
Bissinger states in his essay that local high schools these days are spending millions of dollars on things such as elaborate stadiums, gymnasiums and even chartered planes to transport their team to big play-off championship games. In the past, schools would sponsor fundraisers to RAISE the money for these t...
While sports for the spectators are merely entertainment, the economics of the industry are what drives businesses to become involved. Sports have become more of a business entity rather than an entertainment industry due to the strong economic perception of the over all industry. There are several instances in which economics may contribute to the effect on the sports industry, such as: the success of a team, the price of a ticket, the amount of money an athlete will make, and the amount of profit a team will make. The success of an...