Even after taxes, there is a lot of green between revenue and profit. Taxes are one of the smaller inputs in the equation, much smaller than product, equipment, labor, security, etc...
'People are flat-out slobs': Jamie Pollard
- Thread starter johnstoncy
- Start date
Mostly, I'm on the "Don't Care" side of the general beer sales because I doubt I'd buy a beer at the prices they charge. I rarely buy beer when I go to other sporting events and even then, it only happens when I go with other people and someone ends up buying me a beer and I have to pay them back.
There is a part of me though, that sides with those who are saying, "If every dollar is that important, snubbing your nose at an extra $400,000/year seems like a foolish gesture."
There is a part of me though, that sides with those who are saying, "If every dollar is that important, snubbing your nose at an extra $400,000/year seems like a foolish gesture."
Duh. it is for ISU and the other state universities because they are self insured.
The article listed stated that EIU made $4.5 million after taxes, and we all know the state of Iowa taxes items like alcohol at a high rate. So if they make $4.5 million after paying their taxes, I would not think making $3 million after expenses would be in the ballpark. They are buying at wholesale prices, and its most of the workers selling the beer are make $10 to $12 bucks an hour and a lot are from groups that the university is paying to work.
If they were not making money, at least 50% on each sale, they would not be messing with it. And even if they cleared a million, that is a million more than we make not selling it.
Not in alcohol sells, taxes make a up a large part of the price. You already have security at the event, so you hire some more here, you are still going to have clean up whether you sell alcohol or not, what equipment do you need to sell beer out of large stock cooler?
I give up, you guys are correct, its silly that Uni and EIU are messing with selling alcohol to the average fan, when they should be making them pony up and set in the private areas for the privilege.
Your numbers are not accurate.
BTW, I am pro selling beer. The free cash flow (net profit) is so far from your numbers it is not worth debating.
I have NEVER argued that they shouldn't sell alcohol. I have just pushed back when people have thrown around large numbers like taking revenue and portraying that as how much you will make (profit). I agree they should leave no stone unturned, but the number here is small.
As far as security, you aren't going to trust they are IDing each time at the stands so you will have to have multiple booths around the stadium checking IDs and wristbanding so that is additional staffing. If you are checking at the stands that always has to be employees not volunteers so that means more permanent employees at the current stands or new stands. More cost there either way. In addition checking IDs at each sale slows down the stands even more. One person could have to have their ID checked 3 or 4 times at a game.
Whether insurance companies are involved or not, some risk management expert is going to want a bump in security and sworn LE anywhere you have public facing alcohol sales. That is more cost. Cops are expensive.
Taxes do not take up a larger part of the price then say... I don't know... product cost.
You can serve out of stock tanks I suppose but more likely you are going to need cooler space to keep additional cold product. Now that could be as simple as renting a reefer straight truck for every one or two stands but they aren't free. If your beer distributor is offering this to you free, you are paying more for your product. They are not doing it for free no matter what they tell you.
You are also going to have to add points of sale unless you plan to further muck up the concession stands everyone already complain about as well as some enclosures for those new stands as well as your wristbanding operations. That means some sort of shelter that will serve in August heat, October rain, and December cold and snow. You also have to have additional POS terminals above what you already have. Not everyone is going to use cash nor do you want them to.
And you have a contract with a concessionaire who has to do all of the leg work to make this happen so they aren't doing this for free either. They get a cut after all of the other expenses are met as well.
there is definitely increased exposure to liability (from multiple angles) when selling beer stadium wide whether your the state or not. Again I think they should start selling as they charge more for tickets and trends continue away from in person attendance in college football.
Link: https://www.sadlersports.com/riskma...t sell beer, wine,be accomplished in two ways:
Link: https://www.sadlersports.com/riskma...t sell beer, wine,be accomplished in two ways:
Why the hell do you have the stupid idea they aren't making money? OF COURSE they are making money! No one has said they aren't. Your inability to understand the difference between revenue and profit is astounding.
Almost all stadiums contract out concessions. A HUGE chunk of the revenue is going to the contractor so ISU doesn't have to deal with finding all the staff, inventory management, etc. This is not a hard concept to understand.
So they could make money, and we need additional money sources, but it's not worth it for ISU, but is for UNI and EIU.
As I stated earlier, you guys seem to know and understand this better than most, so EIU brought in according the original link $4.5 million after taxes, on alcohol sells, but then a large percent of that was eaten up by concessioners and other sources. But they are still making enough money to keep doing it, and plan to do so this year. But ISU would not make enough to really worry about it?
It very well could be that they understand this adds more money to their revenue stream, but here people would be saying, "but our Pepsi sells would drop".
So which it, are UNI and Iowa, making money here, or not. Seems like to me a couple extra million would be worth it.
You keep bringing up taxes.....those are sales/excise/alcohol taxes from the state, not income taxes.
Yes, they all make money. Jamie estimated $400,000. The one complicating factor is the the End Zone club. Would people quit this to buy regular tickets. Nobody knows that answer.
Again, I am pro selling beer. I am just more worried about the $19.6 million we need vs the potential $400,000.
Please point out a single person saying money isn’t made.
They could also generate revenue by setting up a bouncy house and charging people to use it.
At this point in time, ISU doesn’t feel the rewards outweigh the risk. Period. You are making **** up and then getting annoyed when you are called on your ********. According to the guy with more information than you, they are leaving $400k on the table. That's not "a couple extra million" unless we are talking about the next 5 years.
$2.5M of booze sales means Aramark or Levy or whoever is the concession provider is gets PAID while ISU gets scraps.
Here is where people keep disagreeing with you. Jamie himself said $400k. Even if he is short selling it by half, that is still a far cry from "a couple million." That is why people keep calling you out. You are inflating the impact and then saying we are saying not to do it because it isn't worth it, when all we are saying is you are over selling the impact. Again, I DON'T CARE IF THE AD SELLS ALCOHOL. But it isn't going to be the huge money maker you keep claiming it will be. They will make money but quit saying it will clear multi-millions cause it ain't happening.
Another factor with how much they would make from beer sales is some people are probably just swapping water/pop/etc. for beer. So how much are they making on top of what they would have? Again I think it would add some profit and something for fans so they should do it.
Good point. There would be some incremental revenue/profits, but there would be some deductions before the additions.
Start up overhead would be closer to nothing than something to even worry about
So these other schools are getting scraps but are still proceeding with it. Why? Seems silly
What do 80% of the power 4 or 5 schools know that ISU does not? How do they make it work?
It's a fair question. Maybe the 80% are involved with a boondoggle and the 20% are the smart ones. I honestly do not know.
Personally I think Pollard is a major control freak, but when it comes to athletics that is mostly a plus you need to make resolute decisions. But can be a minus from time to time.
End of day the possibility exists, if he wants to the state to pony up funds, they will say we want some of it back in tax revenue back. Add beer to the menu.
For now it ain't happening
Last edited:
