Why a Night at the Game Feels Unaffordable: Inflation, Interest Rates, and the Economy

Game Recap — What Changed?

Five years ago, attending a live NHL or NBA game was expensive but manageable. Today, fans are paying more for tickets, concessions, merchandise, and even transit. A family night out can easily cross hundreds of dollars.

Teams blame higher operating costs. Fans blame greed. But zooming out, this price surge is part of a much larger economic story affecting everything — from groceries to gas to mortgage payments.

Macroeconomic Analysis — Inflation & the CPI

Inflation is the sustained increase in the overall price level of goods and services. It is measured using the Consumer Price Index (CPI), which tracks common expenses including transportation, food, and entertainment.

As inflation rises, each dollar buys less. That means teams must charge more just to cover the same costs — wages, utilities, security, and arena maintenance. Even if ticket demand stays strong, higher prices reflect reduced purchasing power across the economy.

Interest Rates — Why the Bank of Canada Matters

To fight inflation, the Bank of Canada raises interest rates. Higher rates make borrowing more expensive, slowing consumer spending and business investment.

For sports organizations, this means higher costs to finance stadium upgrades or renovations. For fans, it means higher credit card interest and mortgage payments — leaving less disposable income for entertainment like live sports.

Aggregate Demand — Who Still Buys Tickets?

In macroeconomics, aggregate demand represents total spending in the economy. As interest rates rise and inflation squeezes budgets, aggregate demand weakens.

Only higher-income or die-hard fans continue attending games regularly. This explains why arenas may still sell out while many average fans are priced out — the economy hasn’t collapsed, but spending power has shifted.