The Royal AM tickets recently caused an uproar but just how big is the sports ticket sales market in South Africa?
This is the business of sports event ticket
THREAD ⬇️
#SportsBiz
The Royal AM tickets would be sold at the Royal AM Hair Salon in Gateway, Premium lifestyle venue Max's Lifestyle in Umlazi as well as well as a BP Garage opposite the venue of the match in Chatsworth.
But why not a national agent platform like Ticketpro?
Ticketpro partners ⬇️
In South African football, clubs retain 100% of the revenue from their league match gate takings while the league gets revenue from matches organised directly under its jurisdiction such as cup games and special events.
📸 The South African
Selling tickets at your own establishment allows you to cut out the middle man and avoid resale agent commissions.
It's unknown how much revenue Premier Soccer League (PSL) clubs make from gate takings but the league generated R23 million from tournaments in 2019
PSL Revenue ⬇️
According to Statista, revenue in the South African event tickets segment is projected to reach R4.34 billion in 2022 and show a compound annual growth rate of 6.25% resulting in a projected market volume of R5.87 billion by 2027
The event ticket market's largest segment is sport events with a projected market volume of R1.7 billion in 2022 and the average annual revenue per user is estimated to be roughly R1027.29 this year
Since Shoprite acquired Computicket from Media 24 in 2005, Computicket has grown to dominate the online event ticket sales market.
The company has been fined on two occasions and agreed to pay fines of more than R30 million for anti-competitive behaviour.
They were first cited in 2019 and fined R20 million for practices spanning a period between 2005 and 2010.
In May of 2022, The competition commission found that Computicket entered into exclusive deals with theatres, promoters, and other event organisers between 2013 and 2018
This led to a fine of R11.3 million, 10% of the R110 million they generated in commission from ticket sales in 2021.
How Ticket pricing is determined
While most PSL clubs have retained their pre-Covid-19 ticket prices, Kaizer Chiefs announced a ticket price hike which they attribute to “an increase in security safeguards and overhead costs”.
Dynamic pricing allows teams to earn more by selling tickets at a wide variety of prices and seating. This means a ticket in the "nosebleed" seats of a stadium is considerably less than mid-center seats. In addition, home versus away games and popular opponents are factored
Ticket pricing is further impacted by the commission fees. Quicket for example, has two fees, commission and booking fees. Typically event organisers pay the commission and ticket buyers pay booking fees, but flexible pricing means you choose who pays which fee
They take a 4.9% commission excluding value added tax (VAT) as well as a R5 booking fee per ticket.
A calculation for event with 30,000 fans ⬇️
Abiding By The Law
While selling tickets at a hair salon may seem like a wise idea, it goes against the requirements of the Safety at Sports and Recreational Events Act of 2020 (SASREA).
SASREA, which came into operation in August 2010, seeks to promote spectator-friendly, safe and secure sports, recreational, religious, cultural, organisational or similar events and to set and maintain minimum safety and security standards at such events.
According to the act, an event ticket must contain information relating to the:
Match-day revenue is an important source of income for professional sports clubs. A reliance on third parties to facilitate ticketing can impact the amount of revenue generated but ultimately, taking the ticket sales process in-house has to comply with the law and serve customers
That wraps it up for this one.
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