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How much does lower attendance affect revenue streams?

Discussion in 'Colorado Football Message Board' started by boydbuff, Nov 21, 2012.

  1. boydbuff

    boydbuff Club Member Club Member

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    I mentioned this in another thread but not sure anyone answered it. Has anyone ever looked at the financial repercussions from bad seasons leading to lower attendance and how that lower attendance affects revenues for the university?

    It seems with some simple math it is clear that getting rid of Embree should be much cheaper than keeping him, with an ROI (depending on who they hire and for how much) within a year or so.

    For example, Folsom Field has a capacity of 53, 613. Let's say they keep Embree and the average paid attendance is around 35,000 next year. What is the average ticket price? On top of that what if say only half of the boxes get renewed if Embree stays on?

    The alternative could be hiring a proven coach, say a Tedford just for argument sake. We'd probably get an average of 45,000-50,000 in attendance and most if not all the boxes renewed. So 10,000 extra tix sold per game (6 home games next year) plus double the box seat sales, add in a reasonable amount of concession profit (not just sales b/c there are cost of goods sold there).

    Trying to stay conservative-10,000 more tickets times an average price of $20 would be $200,000. Say $5 profit on average from sales on site that is an extra $50,000 per game. Haven't counted in boxes b/c I don't know their pricing structure.

    6 games increased revenue is already $1.5m w/o factoring in box seats OR merchandise sales at the Buffs store or alumni donations....

    Seems like a no brainer. Hard to argue it isn't given that Cal just did the math on their deal and even making a $7m payout to Tedford it was still worth it for them.
     
  2. 89BUFF89

    89BUFF89 Well-Known Member

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    Hey how can the brain trust up at CU have time to think about these football type revenue things when there's a women's LAX team to start up?
     
  3. c502cid

    c502cid Club Member Club Member

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    It's a good question. I'll add to it, is the revenue stream from a successful football team important enough to the merchants of Boulder? I don't think I've heard anything from the Boulder Chamber of Commerce, but other cities rake in big dollars from it (I'm guessing).
     

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