Prizemoney and Inflation

[Skating91]

This came up in another thread about prizemoney, so I was curious to see what it was this year I couldn't remember exactly but it is $64k for the winner of the world championship going down to $8k for 6th place, Euros or Four Continents it is $21k down to $3k for 6th. For skating in an exhibition it is $900 for a medalist, $700 for everyone else. The juniors for jumping the most complex technical content in the world get $10k for winning, $1k for 6th.

Then I read something about the ISU member of the skater is free to skim 10% off the top, then the skater of course is responsible for any currency conversion (take another 2% or whatever it is off the top), taxes come out of this, they do seem to get accommodation, meals, transport from the airport at events. They or their federation pay for their flights.

I was curious then what is was three years ago, because I know cost of living has increased maybe 40% in that time if we use real world numbers not the fudged 5 or 6% per year inflation number.

No, prizemoney was $64k for the winner three years ago, and it's $64k now. The 2024 winner of the world championship is now getting $45k in 2021 money. Obviously skaters also have housing costs, they are required to feed their bellies (probably have to buy things like supplements and only eat fresh, nutritious food), maybe have a car, maybe take a break somewhere warm at the end of the season after beating up their bodies for 11 months.

This is for the best skater in world too, the winner of the world championship. You might finish 7th get $0 and sit around hoping for an invite to the gala to earn $700 (the fed can deduct 10%, currency conversion, then taxes so maybe $350).

Then I read that an all event ticket to Worlds 2025 for lower level seats are $2800. Now it is all event, and good seats. But they must be selling them if they are charging that much. The cheapest seat at the back up top is $350.

In the same thread I read that ticket prices in 2025 compared to Worlds this season are significantly more, and significantly more (50% minimum) since Worlds were last in Boston. If you asked the promotor or the ISU why are ticket prices so much higher, they would probably say well the cost of everything has gone up significantly over the past few years so we must charge more to make it viable. Somehow they forgot to pass this on this to the talent that people pay $2800 to watch.

The total prizemoney across all disciplines for Worlds, Euros and Four Continents is $1.5 million. If that were to rise 40% to make up for what they've lost due to inflation over the past few years we're talking an extra $600k per year, but it would be an enormous difference to the skaters.

This is a sport televised around the world, sponsors logos on the boards. On the face of it, it seems like the skaters are being taken advantage of. Is it really as simple as I'm making it sound?

 

[el henry]

Skating comps cost an enormous amount to produce the event. I would bet the sponsors and ticket sales do not necessarily cover those costs.

Let alone the prize money.

But of course we would need to see the cost line items, the amount actually paid by sponsors to determine that for certain.

 

[icewhite]

This came up in another thread about prizemoney, so I was curious to see what it was this year I couldn't remember exactly but it is $64k for the winner of the world championship going down to $8k for 6th place, Euros or Four Continents it is $21k down to $3k for 6th. For skating in an exhibition it is $900 for a medalist, $700 for everyone else. The juniors for jumping the most complex technical content in the world get $10k for winning, $1k for 6th.

Then I read something about the ISU member of the skater is free to skim 10% off the top, then the skater of course is responsible for any currency conversion (take another 2% or whatever it is off the top), taxes come out of this, they do seem to get accommodation, meals, transport from the airport at events. They or their federation pay for their flights.

I was curious then what is was three years ago, because I know cost of living has increased maybe 40% in that time if we use real world numbers not the fudged 5 or 6% per year inflation number.

No, prizemoney was $64k for the winner three years ago, and it's $64k now. The 2024 winner of the world championship is now getting $45k in 2021 money. Obviously skaters also have housing costs, they are required to feed their bellies (probably have to buy things like supplements and only eat fresh, nutritious food), maybe have a car, maybe take a break somewhere warm at the end of the season after beating up their bodies for 11 months.

This is for the best skater in world too, the winner of the world championship. You might finish 7th get $0 and sit around hoping for an invite to the gala to earn $700 (the fed can deduct 10%, currency conversion, then taxes so maybe $350).

Then I read that an all event ticket to Worlds 2025 for lower level seats are $2800. Now it is all event, and good seats. But they must be selling them if they are charging that much. The cheapest seat at the back up top is $350.

In the same thread I read that ticket prices in 2025 compared to Worlds this season are significantly more, and significantly more (50% minimum) since Worlds were last in Boston. If you asked the promotor or the ISU why are ticket prices so much higher, they would probably say well the cost of everything has gone up significantly over the past few years so we must charge more to make it viable. Somehow they forgot to pass this on this to the talent that people pay $2800 to watch.

The total prizemoney across all disciplines for Worlds, Euros and Four Continents is $1.5 million. If that were to rise 40% to make up for what they've lost due to inflation over the past few years we're talking an extra $600k per year, but it would be an enormous difference to the skaters.

This is a sport televised around the world, sponsors logos on the boards. On the face of it, it seems like the skaters are being taken advantage of. Is it really as simple as I'm making it sound?

Where on earth do your numbers come from? 40%? Aren't you from Canada? Looking at the numbers Canada's inflation seems to be roughly the same as in Germany and while it's definitely too high, it should be going down (and is, currently) and it's definitely not 40%... About 16% for the last 3 years seems correct if I look at my personal expenses. It's mostly alimentation that has really become more expensive, and of course often energy, but energy prices are dropping again and will continue to do so. Of course there are countries with a very high rate, like Türkiye, in Argentina it's skyrocketing and hopefully reaching a plateau soon. So very much depends on where you are. But 40%? I think not in most countries skaters come from. In Japan and South Korea it seems a lot lower than in Europe.

Are the skaters being taken advantage of? I don't know. For that I would need to see a lot more numbers. My believe is that there is not enough done to grow the sport and get the money that would be possible to gain. But whether the feds and associations are working in their own pocket more than necessary - I would think so since that always happens, but a lot more evidence would be needed and I don't think there is that much more money in the sport now than is being distributed.

 

[TallyT]

Then I read that an all event ticket to Worlds 2025 for lower level seats are $2800. Now it is all event, and good seats. But they must be selling them if they are charging that much. The cheapest seat at the back up top is $350.

I wouldn't assume that. From what I've read, a number of competition tickets are given away these days (many to local schoolkids, good idea) or the sponsors' employees fill them... or we see them empty. Worlds is a different kettle of overpriced fish, of course but I doubt it will even break even, I guess its purpose isn't profit but as a showcase. And while the prize money, not only for Worlds but for all the major competitions, is low for an international sport there are others even lower, and those at the very top who are also media-friendly can also attract their own sponsorships.