Soccer is the world’s most favorite sport played in the majority of countries. The phenomenon is that soccer brings people together of all nations, languages, races, religions, political creeds. It is even more popular countries like the United Kingdom, Brazil, Germany, and Spain. The Total aggregate attendance of the English Premier League games reached 13,165,416 in season 2011/2012. As the most popular sport in Brazil, 6.7 million fans attended soccer games in Brazil’s stadiums during the 2009 season. Soccer is also one of the most revenue-making entertainment industries around the world. In season 2011/12, the European football market grew to 19.4 billion euros and its revenue was 1 billion euros over the second placed Bundesliga of Germany in 2011/12.
The purpose of this report is to analyze the demand which soccer clubs are facing and the strategies and determinants of ticket pricing. In order to clarify this issue, I will divide the article into three major parts.
The problems of the first section will attempt to answer are what the Market structure is in the Soccer industry and how the stochastic demand changes.
The second section explains the method to solve the timing problem of selling seasonal tickets and single tickets.
The last section explores what the strategies and determinants of ticket pricing are.
There have been many studies in the economics literature on factors that influence the consumption of sports. It is generally represented by the attendance at sporting events. Economic models have been widely applied to analyze the factors that determine spectator attendance, and this method has been applied to various sports.
Demand for Soccer
Sport clubs as Monopolists
In short run, the sup...
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... set of switching times τ∈[t,T] and n(τ)=[n(t)-NB(τ)+NB(t)]+, x+ = max{0, x}.
To decide whether delaying the switch time is beneficial, the expected revenue of switching immediately at t, which is Π(t,n(t), should be compared to the expected revenue of switching later until time τ (t ≤ τ ≤ T), which is E[pB((NB(τ) –NB(t)) ∧ n(t)) + Π(τ,n(τ))]. An infinitesimal generator G respect to the Poisson process (t, NB(t)) for a uniformly bundled function g(t, n) is defined to realize the comparison.
G g(t, n) = 〖lim〗┬(Δt→0)〖1/Δt〗 E[g(t+Δt,n-NB(Δt))-g(t,n)]
= 〖lim〗┬(Δt→0)〖1/Δt〗 ∑_(k=0)^∞▒〖[g(t+Δt,(n-k)〗+)-g(t,n)]〖(λ_B Δt)〗^k/k! e^(-λ_B Δt)
= 〖lim〗┬(Δt→0)〖1/Δt〗 [(g(t+Δt,n)-g(t,n))(1-λ_B Δt)+(g(t+Δt,n-1)-g(t,n)) λ_B Δt]
= 〖lim〗┬(Δt→0)〖1/Δt〗 (g(t+Δt,n)-g(t,n)) + 〖lim〗┬(Δt→0)〖1/Δt〗 (g(t+Δt,n-1)-g(t+Δt,n))
= (∂g(t,n))/∂t+λ_B [g(t,n-1)-g(t,n)
Financial aspects and profitability of college athletic programs is one of the most important arguments involved in this controversy. A group of people expresses that college athletic programs are over emphasized. The point they show on the first hand, is that athletic programs are too expensive for community colleges and small universities. Besides, statistics prove that financial aspects of college athletic programs are extremely questionable. It is true that maintenance, and facility costs for athletic programs are significantly high in comparison to academic programs. Therefore, Denhart, Villwock, and Vedder argue that athletic programs drag money away from important academics programs and degrade their quality. According to them, median expenditures per athlete in Football Bowl Subdivision were $65,800 in 2006. And it has shown a 15.6 percent median expenditure increase fro...
Noll, Roger, and Zimbalist, Andrew. Sports, Jobs, and Taxes: The Economic Impact of Sports Teams and Stadiums. Brooking institutions press, Summer 1997. Vol. 15 No. 3.
In the world of sport, soccer and football with respect to demographic has had numerous controversies. Although both sport are known famously around the globe, for many years fans from both sides are known for asking, is American football same as soccer? What’s the time limit on both sports? What’s the game objective? Do they use the same ball? However they both have similarities and differences which I will be talking about in this essay.
Soccer — or football (or foosball or futbol), as it is called by the rest of the world outside the United States — is surely the most popular sport in the world. Every four years, the world championship of soccer, the World Cup, is watched by literally billions all over the world, beating out the United States professional football's Superbowl by far. It is estimated that 1.7 billion television viewers watched the World Cup final between France and Brazil in July of 1998. And it is also a genuine world championship, involving teams from 32 countries in the final rounds, unlike the much more parochial and misnamed World Series in American baseball (that doesn't even involve Japan or Cuba, two baseball hotbeds). But although soccer has become an important sport in the American sports scene, it will never make inroads into the hearts and markets of American sports the way that football, basketball, hockey, baseball, and even tennis and golf have done. There are many reasons for this.
Known as the world’s most popular sport, professional soccer has helped create and define different groups of people around the world for longer than a century. The hoopla surrounding teams, geographic areas fans dwell in, and political ideals associated with individual clubs have carved an identity for millions of supporters whose heart and soul becomes dedicated to their favorite players, stadiums, and coaches. Soccer teams and their fans can give us a window into how people can be divided and defined by their allegiances and ideals, and why those with similar views band together to create a familiar environment for themselves.
Karon, Tony. "What Soccer Means to the World." TIME.com. TIME, 21 July 2004. Web. 04 Dec. 2013.
Soccer is the worlds most popular sport. It is the national sport of most European and Latin-American countries, and of many other nations. Millions of people in more than 140 countries play soccer. The World Cup is held every four years. Soccer is one of the most famous international sports. Soccer is known world wide and is played in the Olympics.
The main purpose of this investigation is to determine whether there is a relationship between successes of clubs in the English Premier League and the amount of money spent on their players. The type of data that will be collected is the weekly salary of the 11 starting players of each club in the premier league and the ranking of every team in the premier league this season. The data for this study and the rankings of the teams are the ones of November 4th 2013, and may be subject to c...
Money has always been a part of soccer's history. Players would move for bigger and better wages all the time throughout history. Especially during the height of soccer in the United States and the NASL. As time progressed more clubs began to buy out players contracts from their teams in a way of transferring big names to the team. Soccernomics, by Simon Kuper and Stefan Szymanski, describes how purchasing players for mass amounts of money became the norm in the soccer world today. Kuper and Szymanksi studied the influence of transfer market changes from 1978 to 1997 finding that, “transfers explained only 16 percent of their total variation in league position. By contrast, their spending on salaries explained a massive 92 percent variation” (48). This is due to the fact that when players are paid higher salaries they settle in with the team better knowing that the team is putting trust in them; instead of constantly buying new players and messing with team chemistry. Teams spend absurd amounts of money on players that statistically wi...
It is a business in which owners and players attempt to coincide. It is a business where TV controls fan interest. It is also a business that affects many people's lives, both monetary and living aspects. There are many aspects that are involved in the economics of sport. Each one has unique qualities that add to the greatest source of entertainment.
In order for revenue management to be successful, four fundamental conditions must be met. The first requires a permanent amount of supply available for sale. Meaning, a fixed amount of seats per aircraft should be available per route. Second, resources sold must be perishable. Seats are a perishable items, if not sold they terminate without value. Third, the most vital portion of r...
As a result of it’s fair share of money among all twenty clubs, the Barclays Premier league is the best league. The English league has been the only league that evenly distributes its earnings in television money to all of it’s clubs since it was first created in 1992(HubPages). The even distribution in the Barclays Premier allows for all clubs to invest in better squads,which makes the league fairly competitive. Such fair system of distribution isn’t the same for many of today's best known leagues, as they decide to give a bigger sum of money to the big clubs in the league and a small amount to the smaller clubs. This system only makes their league less competitive as there is not many clubs in the league that can afford to invest in bigger squads. As the Barclay’s Premier league continues to earn mo...
The amazing game of soccer is played in every continent, and is the world’s most popular sport. It is proven to be one of the number one sports to be played and watched. Because its fans and players are so devoted, the sport continues to grow. Requiring only a ball and open space, the activity is available to anyone, whether rich or poor, male or female, athletic or not. Over the years, soccer has won the hearts of many because of its unique history, many benefits, and notable achievements.
Since it began in 1930, the FIFA World Cup has been the largest single event sports competition in the world. Every four years FIFA, the Fédération International de Football Association, calls upon thirty-two of the world’s greatest soccer teams to compete in the stadiums of the host country. In addition to having one of the top competing teams, Brazil will also be hosting the 2014 FIFA World Cup. The 31 day tournament begins in Sao Paulo on June 12th and ends with the championship match in Rio de Janeiro on July 13th. In recent months Brazil has been busy preparing to host the tournament in twelve brand new stadiums around the nation. The World Cup will cost Brazil an estimated fourteen billion dollars, an amount that continues to increase as plans for the tournament become more elaborate. The amount of money the country will be spending on the tournament angers many of the nation’s citizens. Protests have become a daily occurrence in Brazil as citizens rally against the construction of stadiums and the arrangement of the expensive tournament. It has been argued that hosting the World Cup will benefit Brazil’s businesses and economy; however, the upper class will profit from the publicity of the games, not the thirty-five percent of the population living under the poverty level. The 2014 FIFA World Cup should not take place in Brazil due to the need for improvements in law enforcement, education, and the threat of extreme poverty.
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...