Arsenal could charge as little as £21.25 to ALL fans

In a follow up to the last couple of articles about ticket prices, I got to thinking (I know, it’s dangerous).

One of the interesting parts of my article yesterday was that if Arsenal offered all fans – both home and away- tickets for £20, they would have a deficit of arround £60,000,000 in gate receipts over the season. A big number. A number enough for the club to be greedy and boycott the Newcastle offer. What got me thinking though was ‘what would Arsenal have to charge to break even in terms of turnover, taking into account the new TV deal hitting the clubs this year.’

The magic number we are looking for is £100m, which was approximately Arsenal’s most recent published match day income. To try and achieve this, we need to break down (using approximations from when the stadium was 1st built as the club does not release full breakdown’s) the stadium, to ensure we do not include those club level/box seats.

Club Level generates around £18.5m per season
Box Seats generates £13.8m per season
Diamond Level generates £1m

So ‘non ordinary’ seats generates £33.3m a season (I am going to round it down to £33m). That leaves £67,000,000 in revenue to find from both the new TV deal, and the 53,000 ‘ordinary’ seats.

This year the Premier League Champions will likely get £40,000,000 more in TV money then Manchester United got last year. The increased difference between 1st and 20th is around £1.5m per place. Therefore, if Arsenal finish 4th, they will receive around £35.5m more then they did last season. Remember, we are attempting to find £67m. We have already found £35.5m in increased gate receipts. That leaves us with just £31.5m for Arsenal to match their most recent turnover with the TV deal taken into account.

So using similar maths that I used yesterday, that Arsenal will play 28 home games, how much would a ticket cost for Arsenal to match the previous turnover? Well the equation is simple.

£31,500,00 is what we are trying to find. Divide this by the total seats available – 53,000 – we get £595. Based on the 28 expected home games, Arsenal would need to charge every man, woman and child £21.25 per game to match the total turnover. Nearly Twenty’s Plenty hey!

To ensure I have got it right, lets work backwards. £21.25 times the 28 games is £595. Over the 53,000 ordinary seats we get £31.5m (and change).

Ordinary gate receipts + increase in TV money + executive seats = ?
£31.5m + £35.5m + £33.5m = £100.5m

In summary, the new TV deal should be making things cheaper for football fans. With all things taken into account, Arsenal could reduce match day tickets to a standard £21.25 per game throughout the ordinary seats, and still turnover the same amount as they did in 2012.  Sadly, when the new cash from the TV comes in, the leaches will come out and the money will go into the pockets of players, agents, and hangers on.

Writing this has made me feel a little sick. Tickets could be nearly halved and revenue remain the same. But greed will take over. My only hope is my maths is wrong, but I feel it is not. If it is wrong, I will apologise.

The Twenty’s Plenty is something I back. Not just for away fans, but for all fans. And my basic workings out shows that Arsenal’s revenue would remain the same, even with a reduction to £21.25. I imagine across the Premier League, all clubs could charge a similar amount, and revenues remain high.

Greed is killing our game. More fans get priced out every year. We can all dream. My dream is that next summer, with the money from the new TV deal coming in, Arsenal will announce season ticket prices of £550 and single match day tickets across the board of £21.25. A man has to have a dream.

Keenos

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6 thoughts on “Arsenal could charge as little as £21.25 to ALL fans

  1. Shard

    Perhaps this is true, and while it would be great to see it happen, there is a reason it won’t. The turnover has to increase if we are to compete with clubs like Barcelona and Bayern, not to mention the oil funded clubs. Besides, the Tv money has only come in because more people around the world want to watch the league, and sponsors are willing to spend good money for the visibility. If the ability to spend that money on ‘players, agents and hangers on’ goes away, the tv audience will reduce as they’ll find other leagues with the superstar players, the turnovers will reduce, and the club(s) will lose out. It’s sad, but it’s just the way it is. Basically, just as the fans at the stadium can’t be taken for granted, neither can be the fans who are responsible for the growth of tv money.

    Reply
  2. Sebastian

    What a terrible article. Yes, we could charge £21 a ticket, and watch us fall down the league as we have no money to spend. Genius.

    Reply
  3. Dan T

    Spot on shard. By lowering revenues we lower the quality of the league and the tv/sponsor money will lower. As the external money goes, clubs will need to generate more income from fans again. This will eventually leave the fans in the same position financially but watching a lower quality product. We can’t just think within the EPL bubble. The EPL is in competition with all other leagues across the world and needs the fan revenue to stay competitive.

    It’s not nice to think about but football is a business. If demand is higher than supply (as it is at Arsenal) then it would be backwards from a business point of view to lower prices.

    Having said all that, the fa could impose a rule whereby clubs need to pass on a percentage (say 10-20%) of the new TV money to fans. That wouldn’t really effect the competitiveness of the league and would make a small difference to fans.

    Reply
  4. wazza97

    The clubs I’m afraid are going to carry on charging what they can get away with. Fans are at the bottom of their list of priorities. It’s all about chasing the dollar, It’s why those in charge at Arsenal are happy to simply qualify for the Champions League and lack of deire to push on further.
    http://www.notanotherarsenalblog.wordpress.com

    Reply
  5. da

    hey mate, i up just fed up of manu/chelsea fans and most of the pandits predicting that the team with the biggest and strongest squad will win the prem league! Can you do a survey of last 10 years prem league winners and their squad strengths? Just so we know they aren’t saying absolute buls_hit and we can shut their mouths for good!

    Reply
  6. Pingback: Ticket Price Rises, Andre Villas Boas, Bayern Munich and Luis Suarez | She Wore A Yellow Ribbon

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