Williams & Blum Pod: ISU raises prices, bowl win, foul play in the CFP?

[CyCity]

But is it really a loss of $500k? Those folks leaving Sukup are still purchasing season tickets. They're just doing it elsewhere in the stadium. So while there still might be a net loss, it's going to be offset to some degree based on that.

If they go from paying $999 per ticket to $450 or $650 per ticket then yeah that’s a loss.

 

[BWRhasnoAC]

Now we’re getting somewhere. $1 mill in profit on alcohol sales vs the potential profit loss on Sukup ticket sales. That’s what you need to look at.

Someone already did that math earlier in the thread.

 

[CycloneDaddy]

The people leaving at half is a good point, but if so many people want alcohol why do they not buy up every last sukup seat?

10 years ago, I would occasionally leave for a halftime drink. Not worth it to me anymore. Just like I am nervous putting a bunch of bars and shopping in the middle of the tailgate lots will flop. Is there really a strong demand?

Of the 20 or so people in my direct vicinity on game days, I may be the only one who even drinks beer at the tailgates.

My wife and daughter sit in Sukup because they like the bling (wife is a non drinker). My buddies and I sit on the 30 yard line because we like the view, we go out at halftime and drink.

 

[FinalFourCy]

Which is a more important (exclusive) product differentiation driving Sukup sales?

A) AC/Heat
B) emotion
C) beer sales

It is not believable that having exclusive access to beer is truly the determining motivation in getting all Sukup sales.

Even if one assumes it’s a deal breaker to half, one has to question the elasticity the department is assuming if it’s such an important deal to current Sukup members, but wouldn’t also motivate a lot of others throughout the stadium, albeit at a lower rights fee.

Then you have the actual increase in beer sales and the fact those leaving Sukup are most likely still buying tickets (and would buy beer)

There’s a reason why so many for profit operations sell alcohol.

The AD should explore additional product differentiations outside of beer sales that can be deployed, and likely will need to be as we fight changes in society

 

[Cyclone06]

My wife and daughter sit in Sukup because they like the bling (wife is a non drinker). My buddies and I sit on the 30 yard line because we like the view, we go out at halftime and drink.

Do you have the rewatch the 3rd quarter each Sunday to see what happened?

 

[CyCity]

Someone already did that math earlier in the thread.

Yeah the AD has done the math on it a lot.

 

[cycloneworld]

If 1,000 leave the Sukup for cheaper seats you’re looking at losing around $500,000.

I don’t work for Iowa State. I wish Iowa State sold beer. Reach out to the AD with your suggestions and see what they say. I’m just relaying public information.

I know you don’t and I’m not attacking you at all. I’ve enjoyed our discussion - you don’t get this much respectful back and forth these days. I don’t really care if they sell beer in the stadium (I get enough booze tailgating for 6 hours) but I do think our AD has already made up his mind and doesn’t want alcohol sales at ISU events. That’s fine but I’m not a fan of cooking the numbers to support that position because based on everything I’m seeing, I don’t see any way it’s not revenue positive for the AD. Probably not a significant source but when you are constantly asking fans to pay more, it would be nice to give them something back when you can. And selling alcohol is something that the vast majority of fans want. So it’s a win-win in my book.

 

[Messi]

Dude, seriously? That was the easiest class ever....

 

[BWRhasnoAC]

I know you don’t and I’m not attacking you at all. I’ve enjoyed our discussion - you don’t get this much respectful back and forth these days. I don’t really care if they sell beer in the stadium (I get enough booze tailgating for 6 hours) but I do think our AD has already made up his mind and doesn’t want alcohol sales at ISU events. That’s fine but I’m not a fan of cooking the numbers to support that position because based on everything I’m seeing, I don’t see any way it’s not revenue positive for the AD. Probably not a significant source but when you are constantly asking fans to pay more, it would be nice to give them something back when you can. And selling alcohol is something that the vast majority of fans want. So it’s a win-win in my book.

I mean even if you lost out $200k (seems extreme) you're still looking at $800k which is probably our basketball bankroll, or more.

 

[CloniesForLife]

Again, Ames lager cans (low cost for overhead with just a bunch of beer carts) for the peasants and the rich people can have the full suite of alcohol options in the SEZ

 

[Mr Janny]

I know you don’t and I’m not attacking you at all. I’ve enjoyed our discussion - you don’t get this much respectful back and forth these days. I don’t really care if they sell beer in the stadium (I get enough booze tailgating for 6 hours) but I do think our AD has already made up his mind and doesn’t want alcohol sales at ISU events. That’s fine but I’m not a fan of cooking the numbers to support that position because based on everything I’m seeing, I don’t see any way it’s not revenue positive for the AD. Probably not a significant source but when you are constantly asking fans to pay more, it would be nice to give them something back when you can. And selling alcohol is something that the vast majority of fans want. So it’s a win-win in my book.

Feel the same way. Definitely not attacking. Just trying to math it out and understand.

 

[NWICY]

That horse jumped the fence long ago, my friend. Gambling is already absolutely entwined into college sports. That dam done broke years ago.

But let's keep gambling interesting, less information makes it a greater gamble.
I'm tired of the let's cater to the current whim crowd.
If all this folks are so great at gambling, I hope they use part of their winning to fund WW, it is bonus money use it for the good of the sport

 

[Mr Janny]

But let's keep gambling interesting, less information makes it a greater gamble.
I'm tired of the let's cater to the current whim crowd.
If all this folks are so great at gambling, I hope they use part of their winning to fund WW, it is bonus money use it for the good of the sport

No argument here.

 

[brentblum]

I mean even if you lost out $200k (seems extreme) you're still looking at $800k which is probably our basketball bankroll, or more.

I wish that was all that was needed for basketball! Try 5x that.

 

[BWRhasnoAC]

I wish that was all that was needed for basketball! Try 5x that.

Crazy, so we had around $6-8 mil for all sports this year? Well done either way sir.

 

[brentblum]

Crazy, so we had around $6 mil for all sports this year? Well done either way sir.

For this year we were around $5 mil. Next year with revenue sharing kicking in the goal is to get as close to that $21 million as is allowed.

 

[CycloneDaddy]

Do you have the rewatch the 3rd quarter each Sunday to see what happened?

We are pretty good about getting to the RV lot having a beer and then walking back to the stadium with a roadie. We do usually miss 2nd half kickoff in person but we have the game playing on our phones.

 

[NWICY]

I still drink, but waaaay less than I used to. Whenever I go to an event, I have a hard time spending that much money on one beer in a stadium. Part of it is the reduced desire to drink, but part of it is spending the same amount on a beer that my wife spends on a meal and a drink.

Is that a possible concern for Pollard? Is "the demand for what we don't have" > "what people will actually spend" ? I know there are still plenty that will drink more than their fair share, but I feel like a huge chunk of our fan base is over 30 with kids and not necessarily the volume consumers that we think. We're a thrifty fan base.

Out of curiosity, for people that want alcohol sales, are you more excited for the revenue or the actual opportunity to buy beer inside?

Revenue because I'm not paying $12 for 12 oz of beer.
I support Ww thru Ames Lager and the pizzas. I'm still not in love with the new world of college athletics but I'll sort of support it in ways that I can tolerate.

 

[MR82]

Regarding alcohol: People at ISU tell me it would likely bring in less than a million after insurance, all that crap that's over my head. So feel free to form whatever opinion you have on that.

My take on the opt-outs, etc. It's a systematic thing. Not a specific critique of ISU. The leaders of college athletics are making this professional sports, not me. If they want to keep going this way, then have participation reports like the NFL does. Transparency is a good thing.. This will be mandatory across the board in the next two years. Gambling is a part of the equation, but not the entire thing. I think fans (who are paying the bill) deserve the right to know what's going on - especially once these guys are officially getting paid.

Full disclosure: I don't know how they are going to do it all with HIPPA laws and what not. Smarter people than me will figure it out.

Do any college sports programs receive any direct payments from any gambling business?

Some athletes learned a hard lesson two years ago about gambling. Gambling is like a parasite that feeds off other’s endeavors.

Sports are an entertainment venue and so is gambling. There are only so many dollars to go around. Any entertainment is only worth what people-fans in this case will spend.

 

[NWICY]

I think that's a crazy assumption (the AD, not you). To say that the sole reason that people are paying $999 for a season ticket instead of $450 is they can buy some alcohol during games seems insane. People are paying $75 per game more just to buy beer? That doesn't pass the sniff test.

I'm guessing you buy for the weather protection and amenities, and a little prestige. JMO.