Chris Heck - President of Business Operations

[simboy]

Unpopular opinion - we are easily selling enough of these insanely priced seats for Heck to expect to see a significant uplift in our matchday revenue at the end of the season.

The CL GA prices are insane, but we are still selling them all.

They think we are mugs of whom there are enough to want to buy £95 tickets, because of the circumstances and the lack of price elasticity involved in football.

The obvious fact is, they're right.

Whilst i don't disagree with you, that we are indeed paying far too much at £95, I do think there is a novelty element to it all. A lot of fans boo the Champions League theme as teams walk out, we have shaggers smiles as they play it at Villa Park. The sustainability of higher prices will last as long as the novelty value remains. Half filled stadiums if we "only" qualify for the Europa or conference league next year will be the test. Even if we qualify for the Champions League bit I do wonder if the thrill will wear off for some. 

[Ads]

Familiarity does breed contempt or if we're not as entitled as Man City fans, an ennui at least.

To that end, what better time to cap your match day earnings at their absolute summit and reduce supply further, than by redeveloping Villa Park. You ensure prices remain high in the intervening period, you ensure demand grows for when supply improves and you get 2 years to claim that high match day revenue in compliance with the current and future rules. That would be strategic genuis.

[kippaxvilla2]

The gentrification of the football fan base is upon us.

[Pat Mustard]

Does anyone know what the capacity of the Lower Grounds, Terrace Views, Cells, Corner Flag and Star and Lion are?  Because it looks to me like they have barely sold any tickets for any of them - there are literally hundreds of available seats together in whole blocks for all 5 areas. 

I can't see how this is anything other than a massive balls up -  there's around 500 empty seats in the Upper Holte alone, probably around a thousand GA+ tickets left altogether, at a time when there are still GA tickets available.  They are never going to sell these now, so commercially the gains we are making are surely not worth the resentment it's causing?

[simboy]

Familiarity does breed contempt or if we're not as entitled as Man City fans, an ennui at least.

To that end, what better time to cap your match day earnings at their absolute summit and reduce supply further, than by redeveloping Villa Park. You ensure prices remain high in the intervening period, you ensure demand grows for when supply improves and you get 2 years to claim that high match day revenue in compliance with the current and future rules. That would be strategic genuis.

I am not convinced Heck sees the demand curve like that. Match day revenue is quite small part of the revenue of a football club in the top league. If it goes to £28 mill over the season I would be surprised. Sounds a lot until you consider we get £1 million per win in the UCL and £2 mill for just qualifying.

I read somewhere letting fans in for free or a nominal amount to cover policing/stewarding etc  would not hurt the profit made too badly, but like good little capitalists if you have the demand, increase your price. Every little helps. Your £95 helps pay someone's wages ...

[PeterWithe]

I read somewhere letting fans in for free or a nominal amount to cover policing/stewarding etc  would not hurt the profit made too badly,

I've often thought this, that if clubs push fans too much then they are replaced by people who want to experience the atmosphere and can afford it but do little to contribute to it. Then 'the product' diminishes in value to the worldwide TV audience and the revenues shrink

[ender4]

I am not convinced Heck sees the demand curve like that. Match day revenue is quite small part of the revenue of a football club in the top league. If it goes to £28 mill over the season I would be surprised. Sounds a lot until you consider we get £1 million per win in the UCL and £2 mill for just qualifying.

Matchday revenue is actually a significant part of revenue for a lot of football clubs in the Premier League. eg:

Chelsea - £77m matchday revenue
Spurs - £120m matchday revenue (£6m per game!)
Arsenal - £110m
Man Utd - £137m
and so on.

It's just that Villa have relatively tiny matchday revenues that makes us think it's not as important.  Villa's total revenue is only £250-280m, compared to Spurs £120m matchday revenue.

[Ads]

It's €2.1m per win, so a lot more than £1m.

[Chip Butty 111]

That's right GA+ like i said earlier, you said 4 or 5 here and there, and that's not 4 or 5 here and there is it?

Paulie's quote was for GA as you added there are GA seats available as well and he countered with about five. He specifically stated GA in there.

I also expect between you with 130 GA+ and John with his 130 GA seats comments, there could have been a misquote going on.

Yes, I said GA seats.

Yes there was a misquote, my bad. Apologies. My concern is around low GA+ sales and the myth they are generating a decent income. I did some fag packet maths on this in an earlier post.
At £85 GA and £175 GA+.... If we have 10 seats for sale and sell 5 of them at £175 GA+ =£875
                                                  If we have 10 seats for sale and sell 10 of them at £85 GA =£850
When you factor in giving free food and drink , preparing and staffing the GA+ area , where's the profit on 50% occupancy of GA+ ?? I'd say it a loss leader ATM

[simboy]

It's €2.1m per win, so a lot more than £1m.

I stand corrected. The point is perhaps further amplified.

[rob_bridge]

I read somewhere letting fans in for free or a nominal amount to cover policing/stewarding etc  would not hurt the profit made too badly,

I've often thought this, that if clubs push fans too much then they are replaced by people who want to experience the atmosphere and can afford it but do little to contribute to it. Then 'the product' diminishes in value to the worldwide TV audience and the revenues shrink

I've be thinking this would happen for 30 years and it hasn't. Nouveaus have been going for more than 2 decades now.

[simboy]

I am not convinced Heck sees the demand curve like that. Match day revenue is quite small part of the revenue of a football club in the top league. If it goes to £28 mill over the season I would be surprised. Sounds a lot until you consider we get £1 million per win in the UCL and £2 mill for just qualifying.

Matchday revenue is actually a significant part of revenue for a lot of football clubs in the Premier League. eg:

Chelsea - £77m matchday revenue
Spurs - £120m matchday revenue (£6m per game!)
Arsenal - £110m
Man Utd - £137m
and so on.

It's just that Villa have relatively tiny matchday revenues that makes us think it's not as important.  Villa's total revenue is only £250-280m, compared to Spurs £120m matchday revenue.

And when you say … and so on … I suspect our match day revenue is not going to be anywhere near the “big six”. Also it needs to be compared with our overall revenue as it does with the teams you mention. It’s not a very high percentage and I suspect is less percentage-wise of overall income for Man U, Chelsea et al.

The “importance” of that revenue stream shoots as you drop out of the “elite”, so newcastle will rely upon it more this year (if they were not underwritten by an oil state) as will Burnley and Luton as they dropped down - but relying on parachute payments - but where it really becomes important is when you run out of PL support like WBA or Derby.
Of course those teams will have less coming in because most fans go to games at the more successful teams.

Anyway I’m talking pub bar bollox and I will shut up.

[john e]

When people talk about a match’s been sold out what do they actually mean

Do they mean every single ticket GA, GA+, and all the hospitality areas
Or are we just talking about GA only where availability of these tickets has been reduced to cater for GA+ etc

[eamonn]

Unpopular opinion - we are easily selling enough of these insanely priced seats for Heck to expect to see a significant uplift in our matchday revenue at the end of the season.

The CL GA prices are insane, but we are still selling them all.

They think we are mugs of whom there are enough to want to buy £95 tickets, because of the circumstances and the lack of price elasticity involved in football.

The obvious fact is, they're right.

Whilst i don't disagree with you, that we are indeed paying far too much at £95, I do think there is a novelty element to it all. A lot of fans boo the Champions League theme as teams walk out, we have shaggers smiles as they play it at Villa Park. The sustainability of higher prices will last as long as the novelty value remains. Half filled stadiums if we "only" qualify for the Europa or conference league next year will be the test. Even if we qualify for the Champions League bit I do wonder if the thrill will wear off for some. 

"Shaggers smiles" - good grief, what an expression.

[Sexual Ealing]

It's basically just the delights of a chemical smile, isn't it?