Recently there has been a significant increase in multi-millionaires purchasing English Premier League teams since it has become a big business in terms of sponsorship deals, ticket prices, and transfer deals. Primarily the research topic focuses on the ‘top 5’ clubs in the league which are: Arsenal, Chelsea, Liverpool, Manchester United, and Manchester City. This study is part of the BTEC Higher National Diploma series by the author and relates to Unit 8 - Research Project.
Table of Contents
Background Research
1.1 Introduction
1.2 Research Objectives
1.3 Methodology
1.4 Analysis and Reporting
1.5 Evaluation Criteria
1.6 Time Plan
1.7 Research Specification Benefit
1.8 Code of Ethics
1.9 Summary
Literature Review
2.1 Introduction
2.2 The influence of excessive spending on ticket prices
2.3 The impact of sponsorship deals on jersey prices
2.4 The impact of signing world-class foreign players on product demand
2.5 Summary
Findings
3.1 Introduction
3.2 Frequency Table
3.3 Gender Pie-chart
3.4 Employment Status
3.5 Age Group
3.6 Football Teams
Discussion
4.1 Introduction
4.2 Primary Research
4.3 What has influenced rising ticket prices?
4.4 What is the major factor that affects jersey prices?
4.5 The impact of signing world-class foreign players on product demand
Conclusion
5.1 Introduction
5.2 Evaluation
5.3 Recommendations
5.4 Further Research
Research Objectives and Themes
This study aims to investigate the impact of monetary power within the English Premier League on product pricing, specifically focusing on the 'top 5' clubs. The research seeks to determine how multi-millionaire ownership and excessive spending strategies affect ticket prices, jersey costs, and the consumer demand driven by the acquisition of world-class foreign players.
- Impact of millionaire ownership on ticket pricing
- Relationship between sponsorship deals and jersey pricing
- Influence of world-class player acquisitions on product demand
- The role of team performance and branding in consumer behavior
- Analysis of economic factors vs. financial decisions in football management
Excerpt from the Book
2.2 The influence of excessive spending on ticket prices
Recently the English Premier League has seen an influx of foreign owners who use their financial power to spend millions on buying players. Considering the excessive spending of foreign owned football clubs, Barros and Leach (2006) conducted a study in London which found that English Premier League clubs like Arsenal, Chelsea, Manchester Utd, and Liverpool have spent significant sums of money on buying and signing players which has forced them to increase their ticket prices to stay ‘in profit’. Parallel conclusions were conveyed by Guzman and Morrow (2007) who had concluded that ‘football clubs have become inherently concerned with financial matters’.
Nauright and Ramfjord (2010) reinforce this perspective by analysing the ‘big teams’ owned by Americans which are Arsenal, Liverpool, and Manchester Utd and conclude that all 3 have seen a rise in ticket prices since being taken over. Nevertheless, what is conspicuous is that the journal focuses on American ownership and since both the authors are American they are providing an unbiased view because America focuses primarily on baseball with a limited perspective on ‘soccer’ as suggested by Szymanski and Zimbalist (2005) therefore there are no ‘loyalties’ to specific football teams and the research is purely academic.
However Forrest and Simmons (2006) argue that the reason why ticket prices are increasing is because of the rise of inflation and not necessarily the transfer activities of football teams.
Summary of Chapters
Background Research: This chapter introduces the research focus on English Premier League clubs and outlines the methodology involving questionnaires and sampling to assess the impact of financial power.
Literature Review: This section critically examines existing hypotheses regarding the influence of excessive spending, sponsorship deals, and player acquisitions on product and ticket prices.
Findings: This chapter provides a visual and statistical representation of the survey data collected from 50 participants, covering demographics and preferences.
Discussion: This section analyzes the primary research findings by contrasting them with the literature review, exploring the driving forces behind ticket and jersey price increases.
Conclusion: This final chapter synthesizes the findings, evaluates the success of the research objectives, and provides recommendations for further academic inquiry.
Keywords
English Premier League, Monetary Power, Ticket Prices, Jersey Pricing, Football Sponsorship, World-class Players, Consumer Demand, Multi-millionaire Ownership, Branding, Financial Impact, Sports Economics, Product Demand, Football Business, Fan Loyalty, Merchandise Sales
Frequently Asked Questions
What is the primary scope of this research?
The research investigates the financial and business aspects of the English Premier League, specifically how the monetary power of owners and clubs influences the prices of tickets and merchandise.
Which football clubs are examined?
The study primarily focuses on the 'top 5' clubs in the English Premier League: Arsenal, Chelsea, Liverpool, Manchester United, and Manchester City.
What is the core research objective?
The main objective is to identify whether millionaire ownership and excessive spending lead to higher prices for fans and to analyze if the acquisition of world-class players actually impacts product demand.
Which scientific methods were employed?
The author utilized both primary research methods, including questionnaires and sampling, and secondary research, such as academic abstracts and data from the Football Association.
What is covered in the main body of the work?
The main body includes a literature review on financial impacts in football, an analysis of empirical findings from surveys, and a discussion regarding the factors—such as inflation, branding, and team performance—that drive pricing.
What are the key terms associated with this study?
Key terms include monetary power, English Premier League, product demand, jersey pricing, and consumer behavior within the football industry.
Does the author conclude that player signings drive demand?
The author finds that while there is some influence, player signings only generate significant demand if the team is performing successfully and products are priced appropriately.
What role does inflation play in the results?
The study acknowledges that while fans attribute price increases to millionaire owners, some academic sources suggest that general economic inflation is a significant driving factor for rising ticket costs.
What recommendations does the author make for future study?
The author recommends conducting more in-depth interviews with industry experts, such as club officials and pundits, to gain a more objective perspective from within the clubs.
- Quote paper
- Amritpal Hayre (Author), 2014, An Examination of how Monetary Power within Football impacts Product Prices, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/287095
