Question 28

From the moment Southampton's relegation from the Premiership was confirmed at the end of last season, one fixture above all others has been on the lips of Saints fans.

It was a fixture whispered in almost embarrassed hushed tones, as though to speak its name aloud would summon up an evil poltergeist.

The fixture was the visit of Crewe Alexandra, and since that fateful day last May, Saints fans and people at the club have used the very name "Crewe" as the yardstick of how Southampton's fortunes have folded.

Without being unkind to Dario Gradi's team, not even the most ardent Crewe fan would not argue that the Railwaymen have the pulling power of Ivor the Engine, or a Hornby Double-O gauge.

For that reason, Southampton's first League game against Crewe sent a tremor of fear and cold reality that penetrated the heart of a club that has mixed it with the elite for 27 years.

Around 420 Crewe fans rattled around like a pebble in an oil drum in a section normally reserved for 4,000.

Under the circumstances, a crowd of 20,792 was perhaps not as bad as feared.

It was the third-highest of the day in the Championship and bigger than two Premiership gates, but it was the lowest-ever crowd for a league game at St Mary's beating the record set at the previous home Championship match against Norwich.

Saints reckon their income will drop by at least £25m this year, and they have budgeted for that by off-loading some of the top players, and slashing the wages of those left behind by a half. Even chairman Rupert Lowe is not exempt.

Source: BBC News 28^th August 2005 (adapted)

Task Find out the average gate for Southampton’s home games last season and, using the information above, calculate the average seat price. Is it likely that seat prices will have changed? (Explain your answer, using the concept of elasticity)