ABSTRACT
This chapter examines various pricing strategies and the factors that affect prices. Pricing in sport quickly becomes more complicated, however, when one thinks about the many different aspects of fan consumption and how those various avenues contribute to gross revenues and profits. Every team's ticket pricing structure is set in such a way that there is an appropriate mix of expensive premium seats, and an adequate supply of relatively inexpensive seats. Setting ticket prices is a complex task because it requires understanding exactly how much fans are willing to pay. While ticket prices are lower when compared to the NFL, maximum average ticket prices skyrocketed across the past decade, but minimum prices did not increase at the same rate. The ticket prices charged by teams have been somewhat of a puzzle to economists, not because prices are too high, but because they are too low.
