Football is big business and in business you keep score with dollars. So lets look at it from a business stand point.
Since TU downsized Chapman Stadium to a total of 25,193 seats (that includes Suites, Club and box seats) the economics of playing OSU have changed. Tickets prices for the game have increased drastically to help offset the reduced seating.. But is it still economically a good decision?
I will be using estimated and rounded numbers in this discussion, but they will suffice for discussion purposes. Also, I will look at three different scenarios:
No. 1 -- A 2 for 1 series with OSU
No. 2 -- Three one and done games (for the same period of time)
No. 3 -- A series of home and home games.
All universities give away a certain number of tickets. (Players complimentary tickets, visiting recruits etc.) For our purposes I will estimate that TU can sell a maximum of 24,000 tickets. Now for the numbers.
Scenario No. 1
A 2 for 1 series with OSU
24,000 times $95 = $2,280,000
Additional mini-pack and season ticket sales = $220,000.
Total income = $2,500,000
ESTIMATED EXPENSES:
Visiting team payment = $300,000
TOTAL NET INCOME = $2,200,000
That is total income for a 3 year period. 3 games with 2 in Stillwater where OSU keeps all of the receipts.
Scenario No. 2
Three one and done games each paying TU $1,300,000. Subtract travel expenses of $300,000 for each game, leaves a Total Net Income of $3,000,000 over a three year period.
Scenario No. 3
Home and home games. 20,000 fans times $30 per average ticket = $600,000 minus visiting team's travel expenses leaves maybe $500,000 income per home game. (See note below)
So to recap:
2 for 1 series with OSU = $2,200,000 income for a period of three years.
One and done games = $3,000,000 income for the same three year period.
Home and home games = $1,800,000 for the same three year period
The home and home numbers may be underestimated, because of the unknown amount of revenue received from the suites and club seat ticket sales for an additional game.
None of this factors in television, publicity or other perceived benefits.
Draw your own conclusions.
Since TU downsized Chapman Stadium to a total of 25,193 seats (that includes Suites, Club and box seats) the economics of playing OSU have changed. Tickets prices for the game have increased drastically to help offset the reduced seating.. But is it still economically a good decision?
I will be using estimated and rounded numbers in this discussion, but they will suffice for discussion purposes. Also, I will look at three different scenarios:
No. 1 -- A 2 for 1 series with OSU
No. 2 -- Three one and done games (for the same period of time)
No. 3 -- A series of home and home games.
All universities give away a certain number of tickets. (Players complimentary tickets, visiting recruits etc.) For our purposes I will estimate that TU can sell a maximum of 24,000 tickets. Now for the numbers.
Scenario No. 1
A 2 for 1 series with OSU
24,000 times $95 = $2,280,000
Additional mini-pack and season ticket sales = $220,000.
Total income = $2,500,000
ESTIMATED EXPENSES:
Visiting team payment = $300,000
TOTAL NET INCOME = $2,200,000
That is total income for a 3 year period. 3 games with 2 in Stillwater where OSU keeps all of the receipts.
Scenario No. 2
Three one and done games each paying TU $1,300,000. Subtract travel expenses of $300,000 for each game, leaves a Total Net Income of $3,000,000 over a three year period.
Scenario No. 3
Home and home games. 20,000 fans times $30 per average ticket = $600,000 minus visiting team's travel expenses leaves maybe $500,000 income per home game. (See note below)
So to recap:
2 for 1 series with OSU = $2,200,000 income for a period of three years.
One and done games = $3,000,000 income for the same three year period.
Home and home games = $1,800,000 for the same three year period
The home and home numbers may be underestimated, because of the unknown amount of revenue received from the suites and club seat ticket sales for an additional game.
None of this factors in television, publicity or other perceived benefits.
Draw your own conclusions.
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