Is it Possible?

[cyman1189]

im goin with 15 people... my job is done

 

[IcSyU]

These economic multipliers get difficult to grasp. If you consider hotel, gas, parking, tickets, concessions and tailgate supplies, restaurants after the game, I think you could easily get to $100 a person. Not to mention that there are more than 50k around the stadium every game. Gotta consider that there are a BUNCH more people in town than there would be without a game...people that buy stuff at Target and the bookstore, people that go to Hickory Park, people that fill up with gas before leaving town. As far as economic multipliers, you consider that if there are less games, maybe some of those new hotels and restaurants don't need to be built, which would affect the number of jobs in town, which could affect what THOSE people spend, which affects other businesses, etc.

I won't count concessions, parking, or tickets. That money is Iowa State's, not Ames'. Tailgate supplies are mostly not bought in Ames. People get them before they come into Ames. I'd be surprised if more then 2,000-3,000 people spend the night in hotels. $100 per person is a TON of money.

 

[delt4cy]

This is a tiny example, but it may be a microcosm of cyclone fan attendance this weekend.

I don't have a ticket for the game and neither do 5-10 friends I'm coming with, and I know we will all get in some how. My little brother is coming down from Ames with a bunch of buddies and I highly doubt he has a ticket either. That being said, worst case, Arrowhead will have 30,015 in attendance at least.

I'm going out on a limb. I'm saying 45,000. 25,000 of which will be Cyclone fans.

 

[cybsball20]

Theres no way that they will back out. 30,000 is better then 0. Also NW Missouri State I believe plays against another 1-AA school every year and they only draw 30,00 total and they don't cancel the contract. I have heard numbers in the 30k range as well, but I wouldn't be surprised if it were more in the 40-50k range on gameday.

They also don't pay the teams more than $3 million for that game... If the Chiefs lose money on this deal why would they want to continue it?

 

[outcydethebox]

Theres no way that they will back out. 30,000 is better then 0. Also NW Missouri State I believe plays against another 1-AA school every year and they only draw 30,00 total and they don't cancel the contract. I have heard numbers in the 30k range as well, but I wouldn't be surprised if it were more in the 40-50k range on gameday.

I already stated that. They play Pittsburgh State.

They also don't pay the teams more than $3 million for that game... If the Chiefs lose money on this deal why would they want to continue it?

The Chiefs will not be losing anything. The deal is with Arrowhead which is owned by Jackson County Missouri.

 

[DRCHIRO]

Also, remeber that KU and Mizzou are both off this weekend. Both schools have alumni in the area. You can expect some of them to go simply because there team does not have a game.

 

[IcSyU]

The Chiefs will not be losing anything. The deal is with Arrowhead which is owned by Jackson County Missouri.

Which is exactly how Arrowhead doesn't lose Jackson County anything. Hotels, bars, restaurants, tickets, concessions, parking, etc. all goes back to the county in some way, shape, or form.

 

[Incyte]

Oops . . .

 

[jdoggivjc]

I won't count concessions, parking, or tickets. That money is Iowa State's, not Ames'. Tailgate supplies are mostly not bought in Ames. People get them before they come into Ames. I'd be surprised if more then 2,000-3,000 people spend the night in hotels. $100 per person is a TON of money.

The economic impact is made through tax dollars. Regardless of whether you spend money on restaurants, beer, gas, hotels, or concessions, Ames is raking in the money. I think that's the one thing you miss about concessions - yeah, the university is making money off of that, but not every cent of that is going to the University. Concessions are taxed as well - it's just the tax is figured into the final price. So yeah - Ames is making a big deal of money off of concessions sold at Jack Trice and at Hilton.

 

[IcSyU]

Ummm, 30K x $25 a ticket would be 7.5 million. The chiefs aren't losing money on this game.

Might want to re-check your math on that one by approximately 6.75 million.

 

[IcSyU]

The economic impact is made through tax dollars. Regardless of whether you spend money on restaurants, beer, gas, hotels, or concessions, Ames is raking in the money. I think that's the one thing you miss about concessions - yeah, the university is making money off of that, but not every cent of that is going to the University. Concessions are taxed as well - it's just the tax is figured into the final price. So yeah - Ames is making a big deal of money off of concessions sold at Jack Trice and at Hilton.

Even if $1,000,000 in concessions are sold, the $60,000 in sales tax isn't much money at all...

 

[swiacy]

Some very valid points have been raised estimating $'s generated. When I estimated $5M @ $100 per seat. I was referring to the Ath. Dept.'s take including hillside tix and concessions. The figures from Lincoln on outside the stadium estimates sound resonable. I still contend that this is not the big windfall for ISU and the community of Ames.

 

[CycloneWarning]

I have heard 30,000 TOTAL.

Wrong. The game will be 40,000+.

 

[jdoggivjc]

Even if $1,000,000 in concessions are sold, the $60,000 in sales tax isn't much money at all...

$60,000 may not seem like much, but a. it's probably a bigger impact than you realize, and b. just because it's "small" doesn't mean the city of Ames is going to turn nose up at it...

 

[Incyte]

$60,000 may not seem like much, but a. it's probably a bigger impact than you realize, and b. just because it's "small" doesn't mean the city of Ames is going to turn nose up at it...

Isn't 90% of the tax the State of Iowa's and not the City of Ames's? What the city tax? 1%?

 

[jdoggivjc]

Isn't 90% of the tax the State of Iowa's and not the City of Ames's? What the city tax? 1%?

There isn't a state sales tax that I'm aware of (if there is, I retract the statement). Which would mean that Ames would keep the entire 6% tax (assuming it's at 6%, since that is where the math has led).

 

[IcSyU]

There isn't a state sales tax that I'm aware of (if there is, I retract the statement). Which would mean that Ames would keep the entire 6% tax (assuming it's at 6%, since that is where the math has led).

I believe it's 6.5% in Story County but 6% is just an easier number to use. :wink:

The state gets money from income taxes, etc. so they get some of the pie no matter how you try to avoid it.

 

[cycloneworld]

With our financial situation, I'm fairly confident that if this deal did not benefit us financially, we would be playing this game in Ames and in Manhatten for the next 2 years.

Maybe we take a small "loss" this year compared to what we would have made playing a game at JTS but don't forget we get the same payment next year which would have made us $0 because it would have been an away game.

 

[Incyte]

State tax is 6% and the City of Ames is 1%. There does not appear to be a Story County tax.

https://www.idr.iowa.gov/salestaxlookup/allresults.asp

 

[cybsball20]

With our financial situation, I'm fairly confident that if this deal did not benefit us financially, we would be playing this game in Ames and in Manhatten for the next 2 years.

Maybe we take a small "loss" this year compared to what we would have made playing a game at JTS but don't forget we get the same payment next year which would have made us $0 because it would have been an away game.

Thats why I posed the question. The plan works out IF we play the game there next year. But if K-State and Arrowhead decide its best not to play the game in KC next year, we come out the big losers.