That's $3M Net Sales. Not what they're ultimately taking home. I do get the point that it is extra income regardless.
'People are flat-out slobs': Jamie Pollard
- Thread starter johnstoncy
- Start date
But turning your nose up at $500k is laughable when you're going to be underwater in two years on current projections.
If you read the story, it was $3.2 net from just football, and another $1.3 from all other sports. So they brought in total $4.5 million in revenue after sales tax the article states. Even if they only received half of that figure, that is over $2.25 million that is going to the athletic department,
I don't think they're receiving half that.
I read it, merely quoting your "Squawks are making $3 million a season" number. I'm all for selling beer/alcohol in the stadium as an additional income stream. Net margins on stadium alcohol sales are ~20% (in-laws work in NFL stadium operations on the west coast), dependent on vendor agreements, pricing tiers, and operational overhead etc
It'd be great to get Ames Lager sold throughout the stadium, sort-of as a double dip.
What I saw online the margins were a lot higher than 20% on alcohol sells, could be has high as 90% if you are doing it yourself, or getting a percent of 20 to 30% if you farm it out. What a lot of these pro teams are doing is they also own the company that they have farmed out the alcohol sells too. So the team gets a cut of each sell, and the rest of the money comes in from the other company they own, which then does not show up on the books for the team.
Our youngest son and his wife watched the ISU/KSU game on Saturday on some type of Vegas sphere deal they just opened in Dallas, I asked how much was the beer and his stated $10 for a domestic beer 16 oz bottle. I can go up to Fairway and get them at retail 12 for around $20 bucks, that is retail for me. That comes out to less than $1.75 a beer. If they are selling them at $10 a piece, they are not paying more than a couple of bucks in taxes and salary for the beer sellers, throw in overhead and you get a little more. They are making at least $5 a beer they sell, and they are not paying the same prices I do to purchase it. So that beer that I get at $1.75 at the store, a huge stadium is paying less than a dollar for.
Very simple. Mr. Pollard can stop complaining about finances until he has maximized revenue. You ask us to dig deeper every year and you are leaving money on the table. It can be fairly frustrating.
Guessing the insurance premiums eat into a lot of it.
The state self insures. They aren't paying a premium.
So they have to have reserves to cover any potential claims? Does the University have to contribute to it?
It's no different than the state self insuring every state vehicle on the road. It's all built into the state budget.
Why would the state need to pay the state to insure something for the state? All 3 state universities have been selling liquor for decades in other venues. Just because this is in a stadium doesn't change anything.
How is any of that pertinent? ISU subs concessions out. The only thing that really matters is the cut they get from sales which I would imagine is smaller than the cut larger stadiums get because our stadium is smaller.
The people who act like they know more than the AD does on this are exhausting. Could he be lying? Sure. Chances are however that he's pretty damn accurate because he has more information than anyone else does.
The concession provider is though so indirectly it is hitting ISU's bottom line.
Even if he is accurate. How can you complain about the financial challenges headed your way and then turn around and say it's *only* $400k?
There's an awful lot of people out there at their breaking point as far as what they're willing to invest and asking them to find more, more, more all the time is eventually going to kill you.
So you really believe that ISU or any stadium is going to lose money on alcohol sales? If we only make a couple hundred thousand a season, it more than what we are bringing in now. If UNI was not making money on alcohol sales, they would not be doing it, nor would EIU. We can talk all we want about how much money they are clearing, but it's more than what we are making by not selling it.
I don't disagree with you but at the end of the day college athletics are just becoming more of a luxury item than they have been previously.
But in the same token, $400k on a $21M shortfall doesn't move the needle at all. I understand maximizing revenues but is still less than 2% of the shortfall. This isn’t some magical fix. Its a tiny part of the grand scheme changes that need to happen.
