The On-rushing Recession and Football

[TheMaraudingDog]

The problem comes that when they have a monopoly there is nothing whatsoever to stop them putting prices up to a point where not even you would be able to afford them.

Can you please stop posting your idealistic rubbish and post from a business perspective?

They is no way in hell, even if Sky had a monopoly, that they would go even as far as double the current prices.

If they were to put prices up to a point where I'd cancel (prob around £70 a month tops for package with sport) then I'd imaging that a good 70-80% of their customers would also cancel meaning they would MAKE LESS MONEY.

Sky know the limits to which they can charge and will charge those prices accordingly - although admittidly with Virgin etc out of the way that point maybe a few quid higher than it is currently.

[cmonurz]

I'm an economist so should agree with RR and DG, but in case see TMD's point completely. We seem to have reached an idyllic middle-ground with sports coverage whereby the customer isn't ripped off despite SKY's near (and previous) monopoly of the market. SKY add a significant premium on their standard charge for those that want Sports, but one that represents value to the consumer given the sheer volume of coverage that it gives access to. If the charge went sky-high, people would do without/watch it in the pub/watch teletext etc.

[Kitsondinho]

people would do without/watch teletext etc.

Better than listening to Andy Gray say "Mebbe, Jus Mebbe" for the 4,00000000000th time

[TheMaraudingDog]

I'm an economist

You're a jumped up accountant, economist my arse. Like me doing a bit of business development and claiming to be (Sir) Alan Sugar

[cmonurz]

I'm an economist

You're a jumped up accountant, economist my arse. Like me doing a bit of business development and claiming to be (Sir) Alan Sugar

I've got an Economics degree, you pillock, that's all I meant, RR's and DG's explanations make perfect sense from that perspective. Don't be such a tw*t, you jumped up salesman.

[TheMaraudingDog]

Don't be such a tw*t, you jumped up salesman.

That's more like it.

PS
I've got an A Level in Economics and passed the module in my Business Studies degree

[Kes]

I'm an economist so should agree with RR and DG, but in case see TMD's point completely. We seem to have reached an idyllic middle-ground with sports coverage whereby the customer isn't ripped off despite SKY's near (and previous) monopoly of the market. SKY add a significant premium on their standard charge for those that want Sports, but one that represents value to the consumer given the sheer volume of coverage that it gives access to. If the charge went sky-high, people would do without/watch it in the pub/watch teletext etc.

Unfortunately you don't obtain any grades for your idyllic post on this internet message board. However I'm sure some people might be impressed with your use of English.

[Royal Rother]

It's not just about Economics or how much they charge the consumer - it's about power over the game itself. Ultimate power always corrupts in one way or another.

[cmonurz]

Don't be such a tw*t, you jumped up salesman.

That's more like it.

PS
I've got an A Level in Economics and passed the module in my Business Studies degree

*Scoffs.

Amateur.

[Rev Algenon Stickleback H]

The problem comes that when they have a monopoly there is nothing whatsoever to stop them putting prices up to a point where not even you would be able to afford them.

Fair competition stops that happening.

wouldn't putting up prices to a level where people can't afford it be rather self defeating?

[Royal Rother]

10 years ago how many fans would have thought they would be prepared to pay £50 to watch a bloody football match?

Every week?!!

[Silver Fox]

The price of Setanta has recently been increased by 30%, without customers being informed. If I had it for football I would have canned it immediately.

[Royal Rother]

Indeed, my point being that if asked, people might call Sky a luxury item that they wouldn't pay through the nose for, but in reality they'll keep on finding the dosh however much Sky hike the prices by.

[RG30]

http://www.footballeconomy.com/index.htm

[OLLIE KEARNS]

The impact is starting to works it's way through to the world of football. XL has hit West Ham, AIG are in trouble which could impact Man U, the recession will hit gate receipts, TV subscription and merchandise sales. Advertising revenue will tumble as companies tighten their belts. SKY will bid significantly less for football next time around.
Which clubs are going to be in big trouble in 2 years time and how glad will we be that Reading is well run financially ?

[SpaceCruiser]

Indeed, I'm glad we have Mr Mad.

[1960]

John Lewis (Waitrose) business down 27% this year.