Abstract
In Europe, football is undeniably sport No. 1. European football clubs attract millions of fans to the venue every season. Despite the highest attendance in European football, the German Bundesliga teams do not capitalise on ticket sales. Surprisingly, the Bundesliga ticket prices are the cheapest among Europe’s top leagues. As the price is the most effective profit driver, better pricing decisions can drive revenues and profits up without any upfront investment. The paper comprises a thorough analysis of match day and season ticket prices in the German Bundesliga in comparison to the pricing in other top European football leagues. Derived from the analysis, specific recommendations and implications for pricing strategies in regard of fan acceptance in football are presented. Furthermore, the paper attempts to answer the question of whether revenue management and dynamic pricing could be utilised by football clubs as a profit enhancing pricing tool in the future.
Highlights
The worldwide popularity of football and the excitement of football fans result in significant turnovers
English clubs are able to capitalise on all revenue streams, making the English Premier League the richest league in European football way ahead of the German Bundesliga
In contrast to English clubs, teams in the Bundesliga rely foremost on revenues from commercial activities and are unable to capitalise on ticket sales despite of the highest attendance in European football
Summary
The worldwide popularity of football and the excitement of football fans result in significant turnovers. In 2009/2010, total revenues in the European football industry exceeded 16 billion – an increase of 11% over the 2007/2008 season despite the economic turmoil [7]. Football clubs generate revenues from three broad sources, namely broadcasting, commercial activities, and ticket sales [3]. English clubs are able to capitalise on all revenue streams, making the English Premier League the richest league in European football way ahead of the German Bundesliga. In contrast to English clubs, teams in the Bundesliga rely foremost on revenues from commercial activities and are unable to capitalise on ticket sales despite of the highest attendance in European football. Ticket sales are the most controllable revenue stream for football clubs and charging the right price for a ticket can drive revenues and profits up without any upfront investment. Kearney [1], ticket pricing represents one major revenue opportunity in the Bundesliga as ticket prices are considerably lower than in the Premier League or the Spanish La Liga
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