A-League should heed Dynamic Ticketing issues

Dynamic Ticketing is seen as a new revenue builder by struggling clubs in Europe needing to inject more funds into their clubs. However, the backlash reported by supporters worldwide should make clubs think twice about this divisive option.

Dynamic Ticketing is a system that gives tickets adaptable prices based on demand. The most recent upheaval on this system has come from the Oasis reunion tickets, where fans have queued up for hours expecting tickets to be $292.39 only in a few hours, skyrocketing to $699.38.

This has caused outrage and even opened an investigation by the UK’s Competition and Markets Authority.

The footballing world has recently been riddled with ticket price controversy. Aston Villa fans raised concern at the prices of their Champions League tickets for their first return to competition since its earlier iteration, the European Cup, which they competed and won in 1982, 42 year ago.

A Champions League home ticket for Aston Villa has been increased form the cheapest non-season home tickets at $167.37 AUD rising up to $191, with a discounted price for season ticket holders ranging from $137.83 to $163.43. This comes at a 55% increase for non-season holders and 21% increase for season ticket holders from the clubs official cheapest ticket bracket of $108.

This decision has been defended by Aston Villa’s president of business operations Chris Heck saying that the financial problems facing the club and fears of Financial Fair Play (FFP) stepping in have made the ticket increase a viable option.

Other clubs such as 2023/24 Premier League champions Manchester City prices range from $74 to $123. Liverpool, 6 time champions league winners charge $59 to $120.

Valencia and Celta Vigo have taken it a step further by already imposing dynamic pricing onto its game tickets explaining prices will rise closer to the date of the game based on demand.

From a business point of view, clubs losing revenue see Dynamic Ticketing as an easy cash stream back into the club.

It is no lie that the A-league is under a strain financially, with little respite in sight. The league’s attractiveness as a business venture is vastly diminishing.

Ticketing for the A-leagues has much more financial importance than other more lucrative leagues in Europe. Also, it is worth mentioning that dynamic ticket price range would be substantially smaller than the larger supported and wealthier European clubs and leagues.

A more financially stable league would presumably result in more quality signings and revenue injected into youth development and infrastructure.

The negative effects for the fanbases, however, are glaring.

Supporters are not blind to the recent worldwide football news and know that fan’s frustrations at rising prices and where this profit goes, often falls on deaf ears. These same people could be the first to be hit hard.

The clubs in Spain that have imposed Dynamic Ticketing have caused uproar by their respective fans and other fan bases around the country. It has also soured an already fraught relationship between supporters and club owners.

Many view it as blatant greed, that they treat fans as customers and not as supporters important for the dynamic of the club.

The stage of development that Australian football is currently at means the fans have an important impact on the club’s activity. The popularity of leagues such as the Premier league or even La Liga club management see the benefits outweighing the negatives. This room for decision does not correlate with the popularity of the sport in Australia.

Football clubs should be finding angles to increase attendance and not increasing prices that could minimise interest in matches, with the cost-of-living crisis taking a hit to the public, individuals are thinking twice on where to spend their money.

Big games such as derbies draws in the largest attendance, with last season’s Sydney derby drawing in 28,152 and 27,998 for respective home and away games. Wellington Phoenix’s top of the table clash against Melbourne Victory back in May had the largest attendance at 33,297.

These type of games would be the key moments for Dynamic Ticketing and an increases in prices. The argument is that increased prices could cause less attendance for the casual viewer and an increase of season tickets pricing.

The not as important games could also be effected if they seem to increase in price. This has been mentioned by many fan groups as an increasing occurrence from worldwide clubs struggling with ticket prices.

The A-league clubs must still be realistic with their push to gain more support for football in Australia’s saturated sporting environment.

Australia is no stranger to successful rises in domestic league viewership and stadium-goers.

The 2023 FIFA Women’s World Cup is recorded to have helped garner a big increase in casual viewers to regular supporters for domestic leagues.

It’s possible this profit-building option in Australia could backfire tremendously and impact the league’s development and fan numbers. Something it cannot afford, quite literally.

The league needs more investment there is no denying that, but this volatile option could do more harm than good for Australian football.

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Queensland Government grants boosts growth and affordability

Queensland’s sporting community will benefit from comprehensive state government grants, which will help kids join local clubs, support elite athletes, and upgrade facilities.

For children

  • Access up to $200 in FairPlay vouchers per eligible child to assist with sport and recreation club membership costs.
  • Support of up to $800 is available through Emerging Athlete Pathways for athletes and officials under 18 attending state, national and international competitions.

For clubs and organisations

  • Become a registered organisation to accept FairPlay vouchers, allowing eligible children to use up to $200 towards membership, registration or participation fees.
  • Register your organisation’s competitions at state, national and international levels through Emerging Athlete Pathways to enable athlete and official funding eligibility.
  • Apply for the Minor Infrastructure and Inclusive Facilities Fund to create accessible, safe and inclusive community sport and recreation spaces.
  • Not-for-profit sport and recreation organisations can access Active Clubs funding to support volunteers and deliver flexible, safe physical activities to boost participation.

Disaster recovery

  • Eligible not-for-profit sport and recreation organisations affected by significant weather events can apply for up to $5,000 through the Sport and Recreation Disaster Recovery Program to restart operations.

Other Sports and Recreation funding sources

  • Explore funding opportunities for not-for-profit organisations through your local council.
  • Contact your state sport and recreation organisation for information about activity-specific funding options.
  • Access various funding programs for individuals and sporting organisations through Sport Australia.

Sporting clubs have always been vocal about the importance that government backing has in the upkeep of the sporting industry.

Though it will take time to see the full effect of these grants, this comprehensive list of grants shows that Queensland’s government is dedicated to supporting its sporting industry.

It’s a positive sign and hopefully, it will help increase the sporting output and relieve the financial stress for the people of Queensland. A strong sporting Queensland is a benefit for sport in the country as a whole.

Learn more here.

777 Partners declare bankruptcy, Melbourne Victory to move on

According to Josimar Football, American-owned 777 Partners, whose ownership portfolio includes seven football clubs worldwide, was declared bankrupt on Monday.

It has been confirmed that creditors A-Cap are now in control of the shares at each of the clubs but have been urged to sell those stakes ‘as soon as possible.’

One of those seven football clubs are Melbourne Victory, who accepted 777’s bid for a minority share in the club in October 2022.

The Miami-based 777 Partners bought just 19.9 per cent of the club at a price of $8.7m, with the option of the company eventually taking a controlling stake of 70 per cent in the club.

The other clubs 777 took over were Genoa (Italy), Standard Liege (Belgium), Hertha Berlin (Germany), Red Star (France) and Vasco da Gama (Brazil), while having minority stake in Melbourne Victory and Sevilla (Spain).

777’s shady history and poor business dealings

This financial collapse of the private equity investment firm had been forthcoming, after news in May earlier this year that co-founders Josh Wander and Steven Pasko were removed from the board and had stepped back from their roles as managing partners amid financial struggles.

On the football side of their operations, Hertha Berlin and Standard Liege active fans made banners attacking co-founder Josh Wander for his ‘corrupt’ way of running the clubs transfer and sponsorships dealings. Hertha Berlin in particular had fans aggressively protest outside the Olympiastadion after their relegation in the 2022/23 season.

Co-founder Josh Wander also has a serious criminal history, involving being arrested for possession of stimulants, that is rumoured to have affected his ability to take over Premier League side Everton after he needed to pass the Fit-and-proper owners test regulated by the FA.

From the way they dealt with Bonza to their shocking football club record, everything about this investment group is dubious.

Not a serious situation for Victory

Fortunately for Victory, the stake is minor and unlikely to have too much of an impact on the club’s business dealings or financial situation. With 777 being forced to sell that share in the club, Victory will have to look to acquire a new stakeholder, this time a partner with a bit of stability.

A club spokesman talked about the situation at hand.

“777 is still a 19.9 per cent shareholder of Melbourne Victory,” a club spokesman said.

“As a minority shareholder, the latest on 777 has had no effect on Melbourne Victory and its operations.”

This situation has already left an awkward mark on the club last season with 777’s own Bonza Airlines falling into administration in May.

Bonza subsequently became the Victory’s principal, front-of-shirt sponsor and collapsed just days before the 2024 A-League Grand Final in Gosford, forcing a quick shirt change to insurance company AIA.

Turkish Airlines replaced Bonza as the flying partner of the club and joined the club in March, potentially as a backup plan for the inevitable Bonza implosion.

Conclusion

This news is positive for Melbourne Victory despite the negative implications on the surface level. It allows the club to get away from the disreputable, unreliable 777 Partners and focus on handing the 19.9% stake to partners that are more responsible.

Victory’s business dealings have been superb in recent seasons, growing their already large corporate portfolio and continuing to be one of the richest clubs in the A-League.

Under new manager Patrick Kisnorbo, Victory will look to get back to A-League glory for the first time since 2017/18, whilst also consistently providing some of the largest attendance numbers in the country.

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