August 2011
Intermediate to advanced
500 pages
17h 16m
English
Content preview from Sports Finance and Management
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Stadium Financing ◾ 159
amount of the tax. is also means that fewer fans will attend the sporting event.
e magnitude of the change in price, and also the tax incidence, will depend on
the slopes of the supply and demand curves. If fans are simply willing to pay the
tax and still purchase tickets, then most of the tax incidence falls on the fans. If,
on the other hand, fans are not willing to pay any more for tickets, then teams will
pay more of the tax. While the burden on the team compared to fans depends on
fans’ willingness to pay, the net result of the tax is that teams receive less revenue
and fans pay higher prices for tickets. e distribution of this tax depends on who
exactly purchases the tickets. Lastly, as the tax does not impac ...
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