New Arena Thread: Rogers Place? Yawn...
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05-15-2013, 02:53 PM
Join Date: Apr 2009
Originally Posted by
This really isn't as complicated as you think it is. For example:
I am willing to pay $250 to go to an Oilers' game in a new arena. I don't really care whose pockets that $250 ends up in: Katz's or the City's. I just want to exchange no more than $250 for a ticket to an Oilers' game in a new arena. For the sake of argument let's assume everyone else has the same demand curve as me.
If a new ticket tax is suddenly introduced (let's say 5%), I'm still only willing to pay $250 for my ticket so either Katz reduces the price to $238.10 or I and everyone else stop going to Oilers games. This represents a very real decline in Katz's wealth.
If you want to introduce the supply side of the argument, here it is: Katz needs more revenue (bigger arena, other event revenue, even higher prices) to continue supplying the City of Edmonton with NHL hockey.
I do think that for the short-term ticket prices for Oiler events won't matter. Fact is a lot of the tickets are corporate and there is enough rich diehard fans that have money. Long-term who knows. My concern however would be with the Oilkings, Rush, certain concerts etc...
A perfect example for me is boxing at the shaw. I never missed a fight for about 6 years. If I did miss one it was because of a birthday or wedding. But now that tickets are $60 bucks all tax included I kinda watch which cards I go to. The cards have been weak for awhile now, but for 40 or 50 bucks I didn't care. Now that it's $60 I think twice and pick and choose.
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