College Football's Middle Class May Feel The Squeeze

MeanGreen61 · June 12, 2008

Off the muts board.

It is not shaping up to be a good next few years for those Division I college athletic programs who don't put 70,000 paying fans in the seats every college football Saturday (translation: non-BCS conference teams).

The've spent the past decade or so in an arms race for facilities and coaching salaries that far exceeds their means. When 100 of the 119 Division I-A athletic programs ran deficits in 2006, it's pretty safe to assume some of the deepest shades of red could be found in leagues like Conference USA, the Sun Belt and the WAC. The revenue from attendance simply doesn't measure up to the escalating costs of doing business and it is not offset by television revenue. Many of these schools have had to double their overall athletics budgets over the past decade, but that does not come with a corresponding spike in attendance.

ARTICLE

http://blogs.orlandosentinel.com/sports_co...ge-footbal.html

UNTflyer · June 12, 2008

"Can these schools with small fan bases continue to rely on those fans' financial support? In difficult economic times, let's say 10 percent of Texas' fan base doesn't renew season tickets. A program like Texas -- with its deep pockets, television appeal and huge fan base -- can overcome that. But it's a huge hit for a school like North Texas."

Ouch.

GoMeanGreen1999 · June 12, 2008

"Can these schools with small fan bases continue to rely on those fans' financial support? In difficult economic times, let's say 10 percent of Texas' fan base doesn't renew season tickets. A program like Texas -- with its deep pockets, television appeal and huge fan base -- can overcome that. But it's a huge hit for a school like North Texas."
Ouch.

Barring maybe (big IF) a winless season this upcoming year, we won't see a 10% decrease in reason ticket renewals.

NT80 · June 12, 2008

"Can these schools with small fan bases continue to rely on those fans' financial support? In difficult economic times, let's say 10 percent of Texas' fan base doesn't renew season tickets. A program like Texas -- with its deep pockets, television appeal and huge fan base -- can overcome that. But it's a huge hit for a school like North Texas."
Ouch.

A couple things will insure season ticket growth regardless of economy....winning and/or an announcement for a new stadium.

houstonmeangreen · June 12, 2008

"Can these schools with small fan bases continue to rely on those fans' financial support? In difficult economic times, let's say 10 percent of Texas' fan base doesn't renew season tickets. A program like Texas -- with its deep pockets, television appeal and huge fan base -- can overcome that. But it's a huge hit for a school like North Texas."
Ouch.

Orlandosentinel maye long on concept, but he is short on facts when it comes to UNT. We are not like smu running in the red 14 million per year or some of the other programs with no upside and unwillingness to make necessary changes. UNT is doing what is necessary to win, increase attendance and season ticket sales...stadium is soon and winning is soon....this means attendance and support.

Charlie NT 73 · June 12, 2008

All the more reasons to make deals for multi game series with regional schools like

$mu,Baylor, TCU, Rice, Houston, that include return games.

I am now starting to believe the one way money/body bag games are not worth

the cash generated for one game. The money generated for a 2 for 2 series

with a regional school, over a 4 year period, would be much greater for the schools,

do wonders for game attendence, plus, more fans would have the opportunity

to see the regional games. I know that I would not go out to Miami for one game,

but I would be able to go down to Houston every other year to see a game with Rice

or Houston.

I think all the "mid majors" are currently looking at cutting costs, trying to build

revenues, keeping fans and increasing game attendence. Maybe the fuel crisis will

spur the AD's to have some common sense and make the regional games as a

priority.

mean green d · June 12, 2008

All the more reasons to make deals for multi game series with regional schools like
$mu,Baylor, TCU, Rice, Houston, that include return games.
I am now starting to believe the one way money/body bag games are not worth
the cash generated for one game. The money generated for a 2 for 2 series
with a regional school, over a 4 year period, would be much greater for the schools,
do wonders for game attendence, plus, more fans would have the opportunity
to see the regional games. I know that I would not go out to Miami for one game,
but I would be able to go down to Houston every other year to see a game with Rice
or Houston.
I think all the "mid majors" are currently looking at cutting costs, trying to build
revenues, keeping fans and increasing game attendence. Maybe the fuel crisis will
spur the AD's to have some common sense and make the regional games as a
priority.

I agree Nt 73. Good post on your part. It only makes good fiscal sense.

GMG

GrandGreen · June 12, 2008

All the more reasons to make deals for multi game series with regional schools like
$mu,Baylor, TCU, Rice, Houston, that include return games.
I am now starting to believe the one way money/body bag games are not worth
the cash generated for one game. The money generated for a 2 for 2 series
with a regional school, over a 4 year period, would be much greater for the schools,
do wonders for game attendence, plus, more fans would have the opportunity
to see the regional games. I know that I would not go out to Miami for one game,
but I would be able to go down to Houston every other year to see a game with Rice
or Houston.
I think all the "mid majors" are currently looking at cutting costs, trying to build
revenues, keeping fans and increasing game attendence. Maybe the fuel crisis will
spur the AD's to have some common sense and make the regional games as a
priority.

Just do any kind of financial model and see if you can replace a so called "money game" with any one for one series, not going to happen. Any home game in an even series between schools usually means that the home team is going to get paid once for two games (home and away). Make your wildest assumptions, such as NT could sell 15000 seats at $30 that would give you $450,000 ticket revenue plus parking and concessions less game expenses for the home game and traveling expenses for the away game. Even assuming NT could net the total $450,000, highly unlikely, that would give NT an average of $225,000 a game compared to a money game of $500k to $1m.

There is no way in the foreseeable future that NT won't have to rely on "money" games. The only exception would be if NT decides to completely drop out of bowl level football.

forevereagle · June 12, 2008

Just do any kind of financial model and see if you can replace a so called "money game" with any one for one series, not going to happen. Any home game in an even series between schools usually means that the home team is going to get paid once for two games (home and away). Make your wildest assumptions, such as NT could sell 15000 seats at $30 that would give you $450,000 ticket revenue plus parking and concessions less game expenses for the home game and traveling expenses for the away game. Even assuming NT could net the total $450,000, highly unlikely, that would give NT an average of $225,000 a game compared to a money game of $500k to $1m.
There is no way in the foreseeable future that NT won't have to rely on "money" games. The only exception would be if NT decides to completely drop out of bowl level football.

We may not be able to get rid of them completely at this time, but with the regional matchups being proposed here, maybe we could take it down to just one per year. That would be an improvement.

June 12, 2008

Someone's lying! It's either the college presidents (or other official) or the Orlando Sentinel's source.

According to the equity reports submitted to the Office of Education (and signed by a top official), seventy of the 116 Division 1A/Bowl whatever (service academies don't report) showed an excess of revenue over expenses in 2006. The remaining forty-six did show that they probably had to make up a deficit (since revenues and expenses were dead even) but all had the capacity to do so. Further, those 46 were split evenly between BCS and non-BCS teams.

The tops in surplus was Notre Dame at $22+ million and the smallest was Ball State at $8 thousand. North Texas led the way in the Sun Belt with $1,223,000. The two Floridas and ULM were the others in the SBC to show a surplus (profit). ULM had the lowest revenue ($7.220M) but had expenses of only $7.191 for a surplus of $29,000.

The haves may take in more revenue but the have-nots are better at spending what they have.