Sports Fans Are Still Spending Big Bucks

With prices for sport’s tickets on the rise, people are changing their spending habits to favor experiences over material goods. That means big demand from live event-goers who want to participate in events without any expense spared or cared about.

With restrictions on travel easing, more people are looking to get out and experience high-end things. “I think that the pandemic has really curtailed our desires as humans to want those experiences,” said Ari Emanuel, CEO of Ultimate Fighting Championship owner Endeavor, said recently on CNBC. “People will always find ways around what’s going wrong so they don’t feel stuck.”

The ticket prices for upcoming 2022 NFL games have been averaging around $307 following the release of their schedule this month, said secondary market platform SeatGeek. Though it is down from an average last year which was at $411 out-of-the-gate and higher than what we saw in 2020 before there were restrictions due to Covid (a disease that gripped many countries), these numbers reflect demand as usual throughout every season. However, one thing worth noting here would be how much more expensive football tickets are now when compared with other major sports such as basketball or baseball.

With demand surges, prices are being raised for the PGA Championship this week. $18 beers were shown on a concession menu and spending rates per fan grew for NBA teams in their most recent season according to Team Marketing Report’s ‘Fan Cost Index.

Jaco Figueroa, 29-years old and a die-hard Boston Celtic fan say he paid $1,200 for three tickets to an NBA playoff game between the Brooklyn Nets and his favorite team.

“Play hard, work harder” is the motto of Jaco Figueroa, he purchased beer at Barclays Center but ate before coming because he didn’t want to pay for food. Sports and entertainment venues are notorious for charging higher prices than other restaurants. Figueroa is working two jobs to afford his lifestyle. “I work so I can spend,” he said.

The recent Covid stimulus payments and support programs have allowed people to afford to pay more for sports, according to an economist at Harvard University who served in President Barack Obama’s administration.

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Cramer noted that consumer spending often tends to rise during periods when inflation is low, but it dropped significantly after the Great Recession. He attributes this trend specifically in part due to an increase of sports sponsorship by companies like Nike and Adidas which made their products more affordable for lower-income people who needed them most.”

There are plenty of people who want to spend their money on sports, even if it means paying over $600 for two tickets. 32-year-old Emily Ushko when asked said she  only had “a little bit” and really wanted to go out in style at the game last month. “It’s a once-in-a-lifetime type of thing,” Ushko said. “You want to see these players live, get the feel for the audience, and experience it.”

There has been a lot of talk about how consumers are taking the hit during these tough economic times, but what few people know is that it could get worse for some middle-class fans. Experts say they’ve already seen an increase in demand from lower-income earners who can’t afford as much spending due to rising inflation and higher prices at home or on vacation.

With inflation continuing to rise, more consumers may be hesitant about spending money on essential items. NBA fan Figueroa said he would reconsider coming next season if prices don’t drop by the end of this year’s campaign.

Even though prices are going up, some fans will still purchase season tickets because of their love for the team. For example Kevin Washington and Tawana have been Sixers’ season ticket holders since they started five years ago with no intention on giving them up anytime soon. Even during economic uncertainty which has caused higher than normal inflation rates in recent months they will still find a way to attend games. The couple understands how rare it is to get such an affordable price ($200 per seat).