"Prices have more than doubled since the Labor Department started tracking sports ticket prices in 1999. Why have prices gone up? Because as every sports star from LeBron James to Carmelo Anthony has said, "It's a business." Costs, including athlete salaries, have surged. But there are three main reasons why teams are hiking ticket prices: First, they would rather sell fewer seats at higher prices, than more seats at a lower price."
"It's similar to how airlines often make more money from their Business Class section rather than from selling lots of seats in Economy. In addition, dynamic pricing or adjusting prices based on demand has allowed teams to wring out more money per ticket. And then, there's this: Teams are offering more premium experiences meaning swanky club areas and plush seats because those seats allow them to charge higher prices."
Sports ticket prices have more than doubled since 1999 as overall costs, including athlete salaries, have surged. Teams often choose to sell fewer seats at higher prices rather than more seats at lower prices to maximize revenue. Dynamic pricing has enabled teams to adjust ticket prices based on demand and increase per-ticket revenue. Teams are also creating premium experiences such as exclusive club areas and upgraded seating that command much higher prices. Longtime fans at traditional ballparks can face sticker shock as teams pursue these revenue strategies while ownership changes occur in several franchises.
Read at www.npr.org
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