The Rational Ref | EPL has basics down pat, but Hong Kong misses the mark yet again
Poor turnout at centenary celebration match boils down to one fact: fans are loyal and the HKFA needs to work much harder to get it right
There's nothing too difficult about the economics of getting bums on seats. If there is a ready market to exploit, soccer fans will come in droves. This helps us understand why Hong Kong fans generally stay away from our stadiums.
In England, doomsayers have jumped on the bandwagon of the BBC's recent survey that reveals fans being exploited by their favourite clubs into overpaying for goods and services. These cynics, according to Oscar Wilde, know the price of everything and the value of nothing.
Does it really matter whether Arsenal charge the priciest match-day tickets in the English Premier League at £97 (HK$1,200) and also for the most expensive season tickets at £2,013? Who really cares if stodgy pies (traditional stadium fair) cost £4.50 and a cup of tea is half that price? The only people who care are those who don't sell enough or fail to make a profit. The rest simply continue because the pricing strategy works and the market sustains it.
If it ain't broke, why fix it? In the EPL, there is a market out there where enough individuals are willing to pay
If it ain't broke, why fix it? In the EPL, there is a market out there where enough individuals are willing to pay. "The attendances so far this season are very encouraging, with more than 95 per cent of seats sold and average crowds in line with last season's, which were the highest in English top-flight football since 1949-50," said Cathy Long, the EPL's head of supporter services.
Soccer is not just about price, but value and market sustainability. Just look at successful companies like Apple. For decades, Apple users have not been put off by paying a premium for the company's products even though there are cheaper alternatives. Apple succeeds because users tend to be loyal fans.
Similarly, soccer clubs have discovered that their businesses cater to loyal fans. The majority of EPL fans do not shop around for the cheapest match-day tickets they can find. If they did, there would be massive oversubscription for season tickets at Swansea City and West Bromwich Albion, the two Premier League clubs with the cheapest season tickets at under £500, and nowhere else.
Since fans by definition are loyal, price is unimportant when compared with perceived value. Such loyalty, even in the face of economic hardship, is irrational but nonetheless economists have long observed how such forces can dictate business success. This is why EPL clubs continue to keep their ticket prices relatively high compared with the average cost of living in England. Clubs know they are on to a sure thing.
