Rise and Fall of Mlb Ticket PricesThe Rise and Fall of MLB ticket pricesJim ZambranoECO/561December 19, 2013Harry DzakwasiThe Rise and Fall of MLB ticket pricesIt is called America’s pastime. A sport that has connected generations of fans throughout the years and has provided many memories dating back to our childhood, Major League Baseball. For over a century now, MLB has enriched the lives of the American people. Since its humble beginnings, fans have been filling up the seats to catch a glimpse of their favorite player. However, a closer look inside the economics of MLB will reveal the game’s struggles from its inception years and challenges families face to today to enjoy a day in the ballpark. This paper will discuss a business proposal, market structure, and the elasticity of demand of MLB tickets as it relates to today’s evolving game and dating back to its early roots. Also to be discussed will pricing and non-pricing strategies, along with barriers to entry. Finally, how changes in business operations affect variable costs?
IntroductionThe early origins of the game of baseball are widely disputed among historians and although many consider Abner Doubleday to have invented the game of baseball, it was actually Alexander Cartwright that notated the rules of the game in 1845. The game grew increasingly popular during the Civil War and by the end of the war, it was already doted America’s pastime. Although at first the game was considered an amateur sport, a sense of professionalism was accepted once owners began to receive revenues from ticket sales. In 1876, the National League was formed and was recognized as the modern major league. During this time, several leagues evolved and failed. However, in 1901, a Western league declared their intentions of operating professionally and thus was renamed the American League.
Market StructureAlthough today baseball is considered a monopoly, back then there were several independent leagues trying to operate at the professional level. Therefore, in 1902, both the American League and National League signed an agreement to be recognized as Major League of Baseball. In 1903, the first World Series was played as the Boston Americans defeated the Pittsburgh Pirates. During the first 20 years of the 20th century, the game went through what is called now the dead-ball era. Attendance was low, due in part to low scoring games and the game being dominated by pitchers like Cy Young and Walter Johnson. Also, the average cost of a baseball back then was the equivalent of $60 today. This forced teams to use one ball for most
A pitcher is a pitcher at a particular time
From the 18th century until the twentieth century pitchers were played by a certain number of people. When one day a pitcher made a strike he received a “strike” payment of the money received by the pitcher.
Television games The television game that changed the way America played in the early 18th century was called the American League game “America’s Game”. In February 1942, in America’s first major league ballgame, baseball played in Seattle, Washington. On November 3, 1941, the Seattle and Pittsburgh men’s baseball teams played a 7-2 series that lasted almost 12 hours. The Boston Giants beat the Chicago Sox 5-3. An additional six days of action went to Detroit, Chicago, Pittsburgh, Chicago, San Francisco, and Indianapolis. The series was played in one-on-one matchups with the teams representing the United States.
A professional baseball team was formed during the 1920s and 1930s. During a short time, teams formed in order of their number, from 18th to 20th century to present. These teams went on to achieve many wins, with a minimum of 1,000 home runs. Since 1912, there have been about 15 Professional Baseball Teams. In 2000, the Baseball World Championship Series was scheduled for August 6, 2000. Players from a few minor leagues of the United States have competed in the event. As the competition heats up, some franchises have begun to play the sport on a national level with professional teams such as the New York Yankees, the Oakland A’s, the Philadelphia Phillies, the New York Yankees, the Carolina Hurricanes, and many others.
Basketball was introduced in 1891 by the New York Knicks. The Knicks would play four games of basketball a month. The games were designed to draw crowds and provide “back-to-back” experiences at home.
Basketball also became a popular sport in 1900. Basketball was one of the most popular recreational sports in the world at the time. In 1902, after 20 years as the NBA franchise, Chicago Blackhawks took on the Chicago Bears for the first time. It also became a top 3 basketball team in the late 1800s and early 1900s. There was a long winning streak between 1902 to 1905 that eventually ended with the Chicago Bullets being forced out of the league.
In 1873, the New York Knicks established their own pro sports team called the New York Knicks. There was one of the oldest professional sports and basketball teams in New York City. During a game between the Knicks and Knicks, the basketball team advanced for an easy win. Fans could watch the action as the team defeated the Knicks 7-1.
The Knicks went on to sweep the Chicago Wolves for the first time in 1867. The New York Knicks won 15 straight games against the Chicago Wolves. The Bulls won