Interesting stuff. What I am looking for is a nice article that lays out the economics of Iowa having 7 home games with 2 buy games a year against cupcakes (G5, FCS), vs having 6 home games a year with no buy games. I could make a lot of assumptions but it would be cool if somebody could provide some real numbers.
Hard to say. Not sure you could come up with numbers. Maybe. Maybe not.
Public Measureables:
I don't think it's even close to being a wash when they buy a game. $700,000 to Nevada, or even just over a million that they've paid before. If the article linked below is correct....
$3.4 million in ticket sales/game
$200,000 in parking and concessions
Minus:
Let's say $600,000 (article quotes $400,000 and I'm adding stuff) for security/staff/cleanup/etc.
Let's say another $100,000 for wear on all facilities (roads, bathrooms, etc that is borne by the athletic department (using fuzzy money line between the University and Athletics $, kind of like lottery money for "education"). What's good for the goose and what's bad for the goose, is the same for the gander.
Let's go with an average of $900,000 to pay a patsy.
That's a healthy profit.
Sorta Measureables:
1/7th less revenue from Hyvee, Pancheros, etc. for in stadium advertising.
Suites might be a harder sell.
I can't imagine a scenario where they aren't netting at least $1 to $1.5 million in just 'cash' revenue from fans who attend, eat, drink, and park. Mix in the additional ad/sponsor sales. I
If I own a big huge expensive facility that can generate $1 million (worst case for a buy game) or more per event, I'm gonna want to use it as many times a year as possible. Certainly more than 6 times. Pretty solid marginal revenues against marginal costs.
Stuff I don't have anything on:
I would assume the extra game adds some additional rights revenues coming from the Hawkeye Radio Network.
Also, the collective value of the media deals of an extra game for every Big10 school is quite valuable.
Unmeasurables:
I don't think the marginal cost of the extra game adds a whole lot of actual supply, in terms of tickets. So ticket prices are not effected. Certainly not as much as other factors would like competitiveness/success.
Whatever indirect and intangible support they get from area hotels that can 2x or more their regular price, as well as foot traffic and sales in grocery, bar/restaurant, and liquor. I mean, I know it's indirect. They become targets for soliciting advertising/other revenue for the team. I mean, Pancheros was just a single shop that sold burritos to drunk people who had trouble finishing them. And now, seven times a year 70k people go all Circle of Life and lift their imaginary Simba burrito into the air.
Licensed apparel might drop without that extra game. Scheels sure was busy AF last Saturday. I assume it's as busy on game 7.
I think the revenue is there. Every home game....bought or not. At least until marginal costs reach the decline in marginal revenue. I'm guessing (wild speculation) that it would probably come around 10-11 home games if they're relatively successful and sniffing the Big 10 Championship every several years. Less if you start sucking.
Linkypoo...
Reducing football games delivers financial blow to Iowa athletics. Here's how much it will sting (hawkcentral.com)
