The TL/DR...
- Operating costs associated with upgrades to aging stadiums and increases in player salaries negotiated through collective bargaining agreements have contributed to the significant increase in ticket prices for sporting events.
- Sport franchises face the challenge of balancing the financial realities of running a business while at the same time protecting those aspects of the game that have emotional appeal to the fans.
- The long-term success of professional sports organizations depends on maintaining a loyal fan base by making tickets and concessions available at a reasonable price, providing fun experiences for spectators at the game, and offering value for patrons across different income levels.
“Show me the money!” This is one of the more memorable lines said by actor Tom Cruise playing the title character in the Oscar nominated 1996 romantic comedy-drama, Jerry Maguire. The film is about a charismatic sports agent who, after being fired from a large sports management agency, sets out on his own with a professional football player as his only client. Outside of the movies, the directive of “Show me the money!” certainly rings true when it comes to the price of admission to any NFL, NBA, NHL, or MLB championship game where ticket prices can soar into the thousands. This is evident from data compiled by ticket reseller Vividseats showing the average cost of tickets to the Super Bowl from 2015 to 2026. For the most recent NFL championship—Super Bowl LX—which featured a matchup between the Seattle Seahawks and the New England Patriots, the average cost of a ticket was $9338.
Of course, one would expect ticket prices for the championship of any major sport to be expensive. But for more than the last two decades, ticket costs for admission to all sporting events have climbed dramatically. According to the U.S. Bureau of Labor Statistics (BLS), from 2000 to 2025, the price for admission to sporting events more than doubled, increasing by 123 percent. The BLS points out that in comparison, the “all items index of consumer prices,” which includes housing, transportation, food, apparel and more, increased 87 percent for the same period. Rising prices can reduce people's purchasing power, making it harder for some fans to afford the cost of attending a sporting event. This can transform what was once a common, affordable, and widely enjoyed pastime into something more of an expensive luxury. Craig Esherick, professor and Academic Program Coordinator of the Sport Management Program within the College of Education and Human Development (CEHD) at George Mason University, recently shared his thoughts on the significant increase in ticket prices for live sporting events that has occurred over the years.
Professional sports organizations must balance the financial realities of running a business while ensuring that fans remain emotionally invested in the game.
Being a sports fan or playing a sport can be an emotional experience. A sport can unite individuals in their love of the game, inspire players to achieve what they thought was impossible, and fortify the determination and grit a person never knew they had. But professional sports are also run as a business. Team owners face the financial realities of needing to be profitable while managing rising operating costs. At the same time, sports franchises must preserve the emotional aspects of the game that appeal to fans. It can be a difficult balance.
Sport league owners are offsetting expenses by pursuing new revenue sources.
Two of the largest expenses for team owners are stadium improvements and player salaries. To enhance the fan experience, many stadiums, especially older venues, are adopting innovative technologies and artificial intelligence to improve comfort, convenience, and entertainment. Concurrently, player associations and unions representing athletes in the NFL, NBA, MLB, and NHL negotiate salaries through collective bargaining agreements. These contract negotiations contribute to rising personnel costs. To help offset both categories of growing expenses, league owners have pursued new revenue streams, including selling streaming rights to subscription-based services such as Amazon Prime, Peacock, and ESPN+.
Some professional sports organizations have implemented dynamic pricing for tickets.
One way in which some team owners are maximizing revenue derived from ticket sales is through a strategy known as dynamic pricing. Instead of selling tickets at a pre-determined fixed or static price, dynamic pricing changes the cost of the ticket in real time according to demand. Factors influencing ticket pricing could include the location of the seat (e.g., upper deck, floor seat, club seat, standing room only, etc.), the weather forecast for the game, the win-loss record of the featured teams, and whether the lineup is expected to include a player who is a “fan-favorite” or “rising star.” These factors can shape the demand for a ticket to a sporting event. Proponents of dynamic pricing say it is an effective way for team owners to sell seats at the venue that otherwise might remain empty during the game. They also maintain that dynamic pricing provides fans more opportunities to secure tickets for games at a reasonable cost they can afford. Finally, advocates of dynamic pricing contend that it is a method for teams to capture the revenue from ticket sales that might otherwise be lost to resellers on the secondary market who would offer the tickets at significantly inflated prices.
Providing tiered pricing for tickets and fun experiences during the game can help build a loyal fan base.
Not every professional sport franchise uses dynamic pricing. For those sport clubs that use standard, fixed ticket pricing, it is important to adopt tier pricing at levels that will attract a broad fan base at all income levels. To ensure the continued growth of the franchise, team owners and sport managers must balance the importance of revenue generation with long-term fan engagement. This means that ticket prices and the cost of concessions at the event should be set at reasonable levels. It also requires providing amenities and activities during the event that will create a fun experience for fans—an experience they will want to repeat by returning to future live events. For example, the Washington Nationals (Nats) baseball team mascot named “Screech” (costumed as a bald eagle wearing a Nats baseball cap and jersey), can be seen roaming the stadium during games greeting fans with “high fives” and sometimes giving away tee shirts or other team souvenirs. The fans, especially families with young children, are delighted when Screech comes to visit.
Sport researchers caution that a team will not be successful in building and keeping a loyal fan base if its pricing strategy makes it impossible for individuals with low levels of disposable income to attend a game. Just like the athletes on the field are playing the long game, it is important for franchise owners and sport managers to do the same as they develop a sustainable business model that will ensure a lasting fanbase and the continued financial growth of the team.
To learn more about degree offerings in the Sport Management Program at George Mason University, please visit the program website.