Hello There, Guest! (LoginRegister)

Post Reply 
Minnesota juggling debt vs revenue
Author Message
IWokeUpLikeThis Offline
Hall of Famer
*

Posts: 13,888
Joined: Jul 2014
Reputation: 1484
I Root For: NIU, Chicago St
Location:
Post: #1
Minnesota juggling debt vs revenue
http://www.startribune.com/gophers-athle...510895082/

Quote:In April, the department reduced prices for some of its cheapest season tickets, starting men’s basketball at $340 and men’s hockey at $500. That’s a more than 20-year low for basketball and a $100 drop from a year ago for hockey.

Gophers attendance for their revenue-generating sports has been dwindling. In a five-year span ending with 2015-16, basketball operated at an average of 80% capacity in Williams Arena, football at 94% in TCF Bank Stadium and men’s hockey at 98% in 3M Arena at Mariucci.

For the past three seasons, those percentages declined 5% for basketball and 11% for both football and hockey.

3 revenue sports seeing sharp attendance declines. Minnesota-Duluth dynasty + realignment = unstated factors for hockey.
06-06-2019 10:52 AM
Find all posts by this user Quote this message in a reply
Advertisement


Wedge Offline
Hall of Famer
*

Posts: 19,862
Joined: May 2010
Reputation: 964
I Root For: California
Location: IV, V, VI, IX
Post: #2
RE: Minnesota juggling debt vs revenue
Ticket revenue isn't the only concern about attendance levels. Athletic departments are probably concerned about the long term effect on donations as well.

Without seeing statistics on this, I think we can confidently assume that ticket buyers as a group donate to athletics at a much higher rate than alums/fans who never attend games in person. The more that fans find it preferable to not attend in person, the fewer people the athletic department has in that more-likely-to-donate group.

And sure, Minnesota gets $50 million/year in conference revenue, but their competitors in the Big Ten are also getting that plus more. Example: Per USA Today, Minnesota's 2017 revenue from ticket sales plus donations was about $35 million, while Nebraska's was about $64 million.
06-06-2019 12:54 PM
Find all posts by this user Quote this message in a reply
JRsec Offline
Super Moderator
*

Posts: 38,352
Joined: Mar 2012
Reputation: 8043
I Root For: SEC
Location:
Post: #3
RE: Minnesota juggling debt vs revenue
(06-06-2019 12:54 PM)Wedge Wrote:  Ticket revenue isn't the only concern about attendance levels. Athletic departments are probably concerned about the long term effect on donations as well.

Without seeing statistics on this, I think we can confidently assume that ticket buyers as a group donate to athletics at a much higher rate than alums/fans who never attend games in person. The more that fans find it preferable to not attend in person, the fewer people the athletic department has in that more-likely-to-donate group.

And sure, Minnesota gets $50 million/year in conference revenue, but their competitors in the Big Ten are also getting that plus more. Example: Per USA Today, Minnesota's 2017 revenue from ticket sales plus donations was about $35 million, while Nebraska's was about $64 million.

This is impacting every conference, some more than others, and some schools within the conferences more than others. Having literally every game available on TV is a major contributing source to this phenomenon, however when is is so pervasive it likely has roots in the economy as well.

The middle class is more pinched than ever before. High student loan debt, shrinking health care coverage, rising home costs, diminishing availability of credit, more insurance needs due to rising liability threats, and a vanishing of true pension plans have money tighter than ever before for those who usually comprise the cheaper seats crowds at every venue nationwide.

Personally I think professional sports is going to be hit hard before its over. But when I see these declines everywhere, coupled with less participation in the sport itself, I see a paradigm shift that is already underway with diverse contributing factors.

Toss in diminishing revenue for states to invest in higher ed, especially large amounts to subsidize sports, and I think we are in for a massive culling of schools seeking to play the most expensive sports at the highest level, and a massive culling of smaller schools that play sports period. And that doesn't include the downsizing of higher education outlets in most states which has been underway for a few years already and which will intensify in the years ahead.

So I think it's more than just TV. I think TV gave a lot of fans feeling the pressure a socially acceptable excuse to buy out of the high dollar maintenance of long held social circles.
06-06-2019 01:23 PM
Find all posts by this user Quote this message in a reply
Advertisement


templefootballfan Online
Heisman
*

Posts: 7,652
Joined: Jan 2005
Reputation: 170
I Root For: TU & BGSU & TEX
Location: CLAYMONT DE Temple T
Post: #4
RE: Minnesota juggling debt vs revenue
Minnesota needs domed stadium
Hockey guy, no way D3 should be able to keep up with Minnesota
06-06-2019 01:39 PM
Find all posts by this user Quote this message in a reply
Wedge Offline
Hall of Famer
*

Posts: 19,862
Joined: May 2010
Reputation: 964
I Root For: California
Location: IV, V, VI, IX
Post: #5
RE: Minnesota juggling debt vs revenue
(06-06-2019 01:23 PM)JRsec Wrote:  
(06-06-2019 12:54 PM)Wedge Wrote:  Ticket revenue isn't the only concern about attendance levels. Athletic departments are probably concerned about the long term effect on donations as well.

Without seeing statistics on this, I think we can confidently assume that ticket buyers as a group donate to athletics at a much higher rate than alums/fans who never attend games in person. The more that fans find it preferable to not attend in person, the fewer people the athletic department has in that more-likely-to-donate group.

And sure, Minnesota gets $50 million/year in conference revenue, but their competitors in the Big Ten are also getting that plus more. Example: Per USA Today, Minnesota's 2017 revenue from ticket sales plus donations was about $35 million, while Nebraska's was about $64 million.

This is impacting every conference, some more than others, and some schools within the conferences more than others. Having literally every game available on TV is a major contributing source to this phenomenon, however when is is so pervasive it likely has roots in the economy as well.

The middle class is more pinched than ever before. High student loan debt, shrinking health care coverage, rising home costs, diminishing availability of credit, more insurance needs due to rising liability threats, and a vanishing of true pension plans have money tighter than ever before for those who usually comprise the cheaper seats crowds at every venue nationwide.

Personally I think professional sports is going to be hit hard before its over. But when I see these declines everywhere, coupled with less participation in the sport itself, I see a paradigm shift that is already underway with diverse contributing factors.

Toss in diminishing revenue for states to invest in higher ed, especially large amounts to subsidize sports, and I think we are in for a massive culling of schools seeking to play the most expensive sports at the highest level, and a massive culling of smaller schools that play sports period. And that doesn't include the downsizing of higher education outlets in most states which has been underway for a few years already and which will intensify in the years ahead.

So I think it's more than just TV. I think TV gave a lot of fans feeling the pressure a socially acceptable excuse to buy out of the high dollar maintenance of long held social circles.

I agree. Also agree that pro sports will feel the same pinch but at a much later date, and the first to be squeezed are P5 college programs that are also competing for attention and dollars with a full complement of local pro teams, as Minnesota is.
06-06-2019 01:42 PM
Find all posts by this user Quote this message in a reply
AllTideUp Offline
Heisman
*

Posts: 5,157
Joined: Jul 2015
Reputation: 561
I Root For: Alabama
Location:
Post: #6
RE: Minnesota juggling debt vs revenue
Pro sports franchises tend to get a lot more TV money as well. Frankly, what the typical P5 school gets from TV is peanuts compared to the average pro team.

Of course, there are few pro teams per sport. That and they all have a different distribution model. You can't always watch games out of market and the NFL still has a blackout policy. That alters the dynamic.

I don't see Power schools going that route, however, because exposure to broad audiences is a part of their equation when considering the value of TV.
06-06-2019 01:47 PM
Find all posts by this user Quote this message in a reply
Post Reply 




User(s) browsing this thread: 1 Guest(s)


Copyright © 2002-2024 Collegiate Sports Nation Bulletin Board System (CSNbbs), All Rights Reserved.
CSNbbs is an independent fan site and is in no way affiliated to the NCAA or any of the schools and conferences it represents.
This site monetizes links. FTC Disclosure.
We allow third-party companies to serve ads and/or collect certain anonymous information when you visit our web site. These companies may use non-personally identifiable information (e.g., click stream information, browser type, time and date, subject of advertisements clicked or scrolled over) during your visits to this and other Web sites in order to provide advertisements about goods and services likely to be of greater interest to you. These companies typically use a cookie or third party web beacon to collect this information. To learn more about this behavioral advertising practice or to opt-out of this type of advertising, you can visit http://www.networkadvertising.org.
Powered By MyBB, © 2002-2024 MyBB Group.