Determining the price of football: an analysis of matchday ticket prices in the English Premier League

Abstract

Research question: Match day revenue is still an essential source of income for many professional sports clubs worldwide. This paper studies the determinants of ticket pricing in the English Premier League and examines whether and to what extent stadium goers pay a premium for sporting success and spending by clubs in the players’ labour market. Research methods: We estimate regression models for the cheapest and most expensive tickets of clubs playing in the English Premier League for the five seasons between 2014/15 and 2018/19 inclusive. Results and findings: Our study shows that ticket prices are driven by several variables including the opponent and local derbies. The impact of team performance is asymmetric affecting only the most expensive tickets. Capacity utilisation and total labour cost impact the prices of both types of tickets. Implications: This research provides insights for both leagues and individual clubs. For example, the findings can be used as a benchmark to assess the magnitude of price increases that the market may be willing to bear. Additionally, clubs can explore the extent to which greater revenues can be extracted from different types of consumers.