How Much Profit Was Given Up? $1+ Million.

#26
#26
Monkey Wrench said:
kind of true, kind of not true. if you want to know how much you are making you are going to have to do this analysis. you know as well as i do that BEP is S=VC+FC+P so we need to not only know those figures you speak of that are mixed costs or as you put it "mostly fixed" but also need to know all of our variable costs.
Click to expand...

It's effectively true.

There are virtually no additional costs to selling 1 more seat. There might be a point where so few people show up, they can cut back on concessions staff, but the savings from that are so small as to be meaningless.

Concessions has variable costs (cost of goods sold), but notice I simply estimated "profit per person" on that one. Even there, the variable costs are probably low, since there is a huge mark-up. I'd wager to guess that they make something like 50%+ margins on concession items.
 
#27
#27
VolsRule said:
even with gruden, with lightweight teams like troy there will not be sellouts. fans want to see big games.
Click to expand...

Not really...If we had a breakout season, then I think we would see a lot more sell outs, even with cupcake games.

It's a matter of fan interest and how the season goes.

People will always pay more money to see a winning team than a losing team.
 
#28
#28
DiderotsGhost said:
It's effectively true.

There are virtually no additional costs to selling 1 more seat. There might be a point where so few people show up, they can cut back on concessions staff, but the savings from that are so small as to be meaningless.

Concessions has variable costs (cost of goods sold), but notice I simply estimated "profit per person" on that one. Even there, the variable costs are probably low, since there is a huge mark-up. I'd wager to guess that they make something like 50%+ margins on concession items.
Click to expand...

That would be a great argument if the costs involved with Tennessee football solely involved staffing a stadium for gameday.

Gamesdays finance way more than just operating a stadium. We are losing money as a program, BIG TIME, on the low attendance.
 
#29
#29
Oldvol is right..

I was in school 90-95... Even cupcakes would sell out (or pretty damn close) back then...

When the team is winning, people show up...

Whoever thinks otherwise has no frame of reference....
 
#30
#30
If you bring him back next year then season ticket sales will plummet. They were lucky to sell what they did this year.
 
#33
#33
Whats that first home game attendance going to look like when we start off 2013 with losses to Oregon and Florida?
 
#34
#34
DiderotsGhost said:
Depends. We sold the games out in prior years, when we had a better team. I remember seeing Vanderbilt back in the Peyton Manning years and it was either sold out, or very, very close to it. Certainly more than 70,000 people there.
Click to expand...

Bad example, because no matter how bad Vanderbilt may be, they are still an SEC opponent. And if there is "more than 70,000 there" in Neyland Stadium, it looks empty.
 
#35
#35
The first game of Dooley's time at UT was a home game against UT Martin. Despite him being a questionable hire, over 99,000 attended that game. Bama sold out every single home game last year. With the right coach that could add excitement and win, UT would sell out every home game.

With any new coach, sales will increase.
 
#36
#36
TN has been going backwards for the last two years. 2010 was the first year TN did not lead the SEC in attendance since its inception.
 
#37
#37
Monkey Wrench said:
and 95% are probably getting on here to

1. see if dooley was fired yet.
2. complain that he hasn't been fired yet.
3. check on the "e-insiders"
4. ramble about who our next coach is, based on "e-insiders"
Lol. Nail on head.
Posted via VolNation Mobile
Click to expand...
 
#38
#38
Look folks,I love UT. I would do anything to see us back in 95-01 form again...So here is what we must do:1 hire aHUGE NAME or a black coach 2 have adidas make 12 cool uniforms all incorporating orange and power T but we need a black uni& a camo uni(even an Earnhardt commerorative.lol)to GENERATE POSITIVE PUBLICITY!!! WE MUST DO THIS FOR RECRUITING SAKE!!! 3 We do those 2 things and WE WILL BE IN TOP 10 NEXT YEAR!!! PLEASE PEOPLE WITH MONEY HELP OUR BELOVED VOLS!!!!I AM SICK OF CRYING EVERY SATURDAY!!!WE ARE TENNESSEE!!!WE ARE SUPPOSED 2 BE IN SEC&NAT CHAMP PICTURE EVERY YEAR!!! I AM PIZZED!!!WE CAN EASILY FIX THIS!!!JUST GET A COACH&WEAR COOL UNIS A FEW TIMES,DUH!!!
Posted via VolNation Mobile
 
#39
#39
All this talk about money and everyone left out the biggest factor...This pathetic economy.

As long as our economy stays this bad we'll have empty seats for the little games.

Only AD Hart knows the total of fixed costs and what the breakeven point is.

It may be 30,000 tickets and it may be 60,000 tickets but there's no way anyone here will ever know what the total of fixed costs are on gameday but it's not cheap.

Stadium staff during the game, clean up staff after the game, security which includes all the people at every parking lot that UT rents or owns, rent on the parking lots that UT doesn't own, light bill, bus and transportation costs to get all the fans moved around, train rental for that train that moves fans around, ambulances that are stationed all around the area for a quick response, ect, ect.

Revenue also comes from many other places other than just ticket sales, concessions, clothing, parking, TV and radie or Pay per view, ect, ect.

There's certain fixed costs but there's also certain fixed revenues no matter how many butts are in the seats.

AD Hart and the big money boosters, who are all Millionaire businessmen, will look at every aspect and come up with a projected revenue for next season if CDD is kept on his current contract for another year and will crunch all the numbers based on IF they can even get a new coach and who that coach might be.

If they can't get a serious HOMERUN hire for a new coach then CDD may be kept on for another year just to give them all more time to try and talk a really good coach/recruiter into coming to Tennessee especially if the projected revenue for next season is still in profit.

The next BIG project that's on the top of the list and is urgently needed according to AD Hart is a new dorm building for our players since the current building is 40 years old and can't compete with the other schools when recruits visit Tennessee.

Parents of recruits number 1 question is...Where will my child live if he comes to Tennessee?

Our 40 year old antiquated dorm building will turn recruits off after they've seen new apartment type dorms at other schools so this is a big deal with helping our recruiting which is very tough as it is.

VFL...GBO!!!
 
#40
#40
2013 UT home opponents:

Austin Peay, Western Kentucky, South Alabama, Georgia, South Carolina, Auburn, Vanderbilt
 
#41
#41
DiderotsGhost said:
Depends. We sold the games out in prior years, when we had a better team. I remember seeing Vanderbilt back in the Peyton Manning years and it was either sold out, or very, very close to it. Certainly more than 70,000 people there.
Click to expand...

I have to agree here, when we had kitten, a coach with swagger and knew what he was doing! I myself did not mind driving up there from Alabama to watch the cheaper games and even followed the team to the chick fila bowl. I believe a hire like gruden you will still come close to sell out because some like myself that do not have the money to bring the family to the big games can show our support on the smaller ones.
 
#42
#42
DiderotsGhost said:
It's irrelevant.

"Break-even" point is more relevant for a future projects. For a problem like this, the stadium is already constructed. We don't incur additional costs (at least not on a meaningful level) to seat more people. The only costs we incur at staff, logistics, and the such ... and those costs are mostly fixed regardless of whether we sell 30,000 tickets or 105,000 tickets.

In that scenario, nearly all lost revenue is also lost profit.
Click to expand...

Perhaps I used the wrong nomenclature, forgive me.

I mean what are the fixed cost of running the football program for a season? You touched on that and it includes, staff, maintenance, logistics et al. If you divide that by the number of home games, you could quickly arrive at a rough approximation of how many tickets, per game, must be sold to sustain the program with no growth.

My postulation is that number is far below what most people would presume when they make statements like "if Neyland only had 80k people in it, Dooley will get fired". The program could sustain itself, meaning the football team wouldn't cease to exist, with far fewer tails in seats than most people would presume.

The end result is that it all depends on what the focus of the administration of the University is. Yes, it is true that the UT AD is actually a revenue producing venture, but even with the contribution from the AD to the academic side, the academic side would still exist without the AD (but not vice versa).
 
#43
#43
OP, remember about 60,000 tickets are season ticket holders. Therefore, their tickets were paid in full back in the spring.
 
#44
#44
with cheap 60-70 inch HD TVs, mediocre team and a bad economy, there will be few sellouts in the future.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top