With rising player salaries and growing operational costs, clubs need new ways to boost revenue. In our last article, we shared a creative approach to increasing merchandise sales.
Why?
Because commercial and broadcast income gets renegotiated only every 4–5 years, depending on the deal. That leaves matchday revenue as the one category clubs can influence weekly. Thus, many have turned full speed into ticket pricing strategies.
But is it in the right way?
Struggle with increasing ticket prices
Tottenham fans turning their backs on the game. Fulham’s crowd flashing yellow cards. Liverpool’s Kop removing their iconic flag displays. Wolves fans calling for boycotts. These are just a few examples of Premier League supporters protesting against ticket prices this season, with thousands joining in.
Fifteen of the twenty Premier League clubs raised prices before this season began, mostly as standard increases. But in Spain, Valencia CF went further, becoming the first top European club to introduce dynamic pricing. Ticket costs now depend on demand, how early fans buy, and the quality of seats.
Dynamic pricing is more common in the music industry. Artists often have limited concerts per country or tour, creating high demand and low supply. This setup allows them to squeeze as much money as possible from the ticket sales.
Sports, however, operate under a different dynamic. Football clubs depend on loyal fan bases who attend games regularly to support their teams. Introducing dynamic pricing risks alienating these core supporters. For Valencia, the backlash suggests fans didn’t find the decision appealing at all.
Does dynamic pricing ignore the local fanbase?
Dynamic pricing in football can work for clubs with large international fanbases, especially those filling 30% or more of their stadiums with tourists. These visitors often don’t know the usual ticket prices, are willing to pay more, and won’t mind an extra €5–10 on top of the standard cost.
But clubs must also consider their local fans. Many don’t have the time, interest, or budget to attend every match, making a season card less appealing. If, every time they decide to attend, they’re met with sky-high prices, they might choose other forms of entertainment instead.
One potential solution is offering discounts or promo codes for local fans. However, this requires knowing more about them. Clubs can’t simply target people by nationality due to the many expats living locally, nor do they have access to databases with residence card details.
Ticket subscription can offer the right balance
If clubs want to harness the benefits of dynamic pricing, they should consider transforming season cards into a ticket subscription model. Instead of asking fans to commit to a large upfront payment for the entire season, they could offer a more flexible option. Similar to streaming services like Netflix, fans could start a subscription with a minimum duration — say, six months. After that, they’d have the freedom to unsubscribe or resubscribe as needed.
This approach offers local fans fair pricing with less commitment. After the initial six months, they can subscribe or unsubscribe for shorter periods, like one or two months, when they know they’ll have more time to attend matches.
This brings loads of benefits for clubs:
1. Reducing no-shows
As we mentioned recently, actual attendance is often 10–12% lower than the number of tickets sold, making games seem falsely sold out. With a subscription model, fans who know they can’t attend have an easy option. If they’re traveling, busy, or focused on other priorities, they can cancel their subscription. This frees up seats for others who are eager to watch the game.
2. A more dynamic supply of season tickets
Subscriptions create a more flexible supply of season tickets throughout the season, opening opportunities for more fans. In the Premier League, some families hold season cards for decades, making it nearly impossible for others to get one. This system could help younger fans develop the habit of attending games regularly which is currently harder and harder.
Early success of ticket subscription
FC Copenhagen led the way, RSC Anderlecht followed, and now many other clubs across Denmark, Belgium, and beyond are joining the trend. But why does thinking in terms of subscriptions make so much sense for football clubs?
It’s actually a bit of a reversed question. In fact, I think it’s the only solution that makes sense. The fanbase of a football club doesn’t automatically expire!
Ahead of the 2023/24 season, Viking FK went all-in on the ticket subscription model. The results were remarkable. They achieved a 20% increase in season ticket holders compared to the previous season.
At RSC Anderlecht, the model has been especially popular with younger fans, who represent the club’s future. According to their survey, season ticket holders aged 16 to 26 are twice as likely to opt for a monthly plan.
There are several behavioral economics principles that explain why ticket subscriptions work so well:
- Status-quo bias and psychological inertia: Once you subscribe, you’re more likely to stay subscribed.
- Hyperbolic discounting: People prefer to spread costs over time, making monthly payments feel more manageable.
- Habit formation: The more you attend games, the more likely you are to keep coming back.
- Status and exclusivity: Membership programs appeal to our desire for status and belonging.
But how to distribute memberships?
Ticket subscription linked to identity
Most football clubs still distribute plastic season cards, either by mail or for pickup at the box office. Ticket subscriptions face a challenge here. When a fan unsubscribes, the card needs to be deactivated. This means the fan would either need a new card or must go to the box office to renew it.
In line with our vision, there’s no need for physical cards. Every ticket subscription can be linked directly to the fan’s identity. When your season card is tied to your face, there’s no need for card swaps. Your face remains the same and will always work.
When you unsubscribe, the system simply won’t read at the gate. Resubscribe, and you’re back in the game.
Additionally, fans can’t pass their season cards around without the club noticing, which helps control ticket scalping and reduces the risk of hooliganism.
Conclusion on dynamic pricing and ticket subscription
Clubs need to strike a balance when implementing dynamic pricing. It’s important to ensure that the local fanbase has affordable options and doesn’t turn away from the club. Offering flexibility through ticket subscriptions can help reduce no-shows and attract a more diverse audience.
By taking it a step further and linking subscriptions to fans’ identities, clubs can also control illegal ticket reselling and prevent hooligans from obtaining tickets through others.
