Veikkausliiga’s CEO Timo Marjamaa reminds us that, in general, the increase in costs is paid by consumers quite quickly.
According to Finland’s recent government program, the taxation of, among other things, cultural and entertainment events will be increased by four percentage points.
While in the past the value added percentage of events has been 10, in the future it will be 14. This also affects sports clubs operating through a joint stock company.
CEO of Veikkausliiga Timo Marjamaa estimates that the increase is reflected in ticket prices.
– When the costs rise in some respect, generally speaking, they are quickly passed on to the consumers. Maybe over a period of time the increase of a few percent will trickle down to the prices, says Marjamaa.
Marjamaa states that the increase in value added tax is not the most difficult thing in the world for the Veikkausliiga.
– Public readings are growing strongly and we aim to continue it. We don’t want to be left waiting for a percentage increase from outside. We can’t help it. We just have to be able to live with the environment.
Consumers’ purchasing power has been reduced by the recently raging inflation. Marjamaa is aware that in the big picture the increase in costs has an effect and people will certainly think about what the money is enough for.
However, he can’t believe that going to the stands would depend on a price increase of a few percent.
– If the ticket price is ten euros, then we are talking about an increase of tens of cents.
Executive Director of the Baseball Association Vesa Rämet notes that the topic has not yet been discussed in the clubs, as the matter only became apparent this week.
– Of course it causes cost pressure, because everything else has also become more expensive.
Rämet reminds that the increase in value added tax will directly affect four men’s and one women’s Superpesis clubs, as they are limited company-based. It does not affect a large part of the clubs, because association-based clubs do not have VAT on their tickets.
– Of course, the rise of all other publishing activities is affected, when association-based clubs have to buy and make purchases.
Are you afraid that the increase in costs and value added tax may affect the number of viewers?
– Of course it is possible. When people make decisions about where to spend their money, they probably think about things for a longer time, which are not absolutely mandatory.
– Our ticket prices are moderate. When we talk about the increase in value added tax, limited companies have deduction possibilities, so the increase is not directly that. But yes, it certainly causes reflection.