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ACC revenue question (conference networks, etc)
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Lenvillecards Offline
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Re: RE: ACC revenue question (conference networks, etc)
(07-07-2014 12:20 PM)lumberpack4 Wrote:  It's my belief that revenue disparity within conferences is more of a problem than revenue disparity at the top of the conferences.

The vast majority of all games are in conference. The ability to compete in conference comes first. Once you clear that hurdle you tend to face other conferences on a one-shot basis and one shot deals in college sports show that anything can happen in one game. If you can't compete in your conference, you can't keep fans,, you lose donations and support.

All of this correlates to the size of the football stadium and paid attendance because 100,000 paying fans can pay for a lot of other items.

Lets' look at stadium size and the general results of the programs:

80K stadiums and higher:

Penn State
Michigan
Ohio State
Wisky
Nebraska
Oklahoma
Texas
LSU
Tennessee
Alabama
Auburn
Georiga
Florida
UCLA
USC
Notre Dame
Clemson
TAMU
South Carolina
Michigan State

Isn't it an amazing correlation between the big boys of football and the huge stadiums. These are stadiums filled by huge numbers of alumni and often the statiudm is located in a part fo the state where college football/basketball is the only game in town. Of those 20 only UCLA and USC share a town with major sports franchises, but they don't share them with the NFL.

Now, lets look at the 55K to 80K seat stadiums:

UVA
VT
UNC
NC State
FSU
GT
Ole Miss
MSU
Kentucky
Arkansas
Mizzou
Purdue
Indiana
Rutgers
Indiana
Illinois
Louisville
Iowa
Minnesotta
Ok State
Kansas
West Va
Arizona State
Cal
Stanford
Arizona
Colorado
Iowa State

Now lets look at the sub 55K

BC
MD
WF
Duke
Syracuse
Rutgers
Vandy
NW
Kansas State
Baylor
TCU
Washington State
Oregon State
Oregon
Utah

Playing in a pro stadium - Miami and Pitt

If we assume that each seat represent a 100 dollars in investment - ticket, donation, parking, etc. Then each 10000 seats filled represent a Million dollars revenue (again using rough numbers)

The top tier is making on average about $9,000,000 (range 8 mill to 11 mill) per home game. With 7 home games that $63 million. (100 per ticket)
The middle tier is making on average about $5.2 million per home game and at 7 games that's $36.4 million (80 per ticket)
The bottom tier is making on average $2.8 million per home game and at 7 games that's about 19.6 million (70 per ticket)

TV revenue while greatly important is and will remain between 15 and 25% of the overall revenue stream for the foreseeable future.

The ACC is just fine as it is and with it's current revenue. Until and unless you see a plan to add 20K or more seats in Blacksburg, Charlottesville, Louisville, Raleigh, Chapel Hill or Durham, you know that none of them are moving. Until and unless you see a plan to add 10K - 15K or so seats at Clemson or FSU you know they are not moving.

Each and every ACC team that wants has any ideation to move to the SEC or B10, must enlarge and fill their football stadium to at least 85K in order to compete. Every school has run these numbers.

XLance in particular can comment on the constraints that UNC found. I've seen another study (not NC State's) and they came to the same conclusion - the football stadium had to enlarge but how do you enlarge the stadium if you already have a dearth of hotel space and can't be sure when the game becomes so much trouble that folks stay at home and watch on high def so that the local po-po does not arrest you for public intoxication?

Louisville is expanding their football stadium, again, by about 20k, but I wouldnt look for them to make a move out of the ACC any time soon.

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07-07-2014 01:12 PM
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Re: RE: ACC revenue question (conference networks, etc) - Lenvillecards - 07-07-2014 01:12 PM



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