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.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.
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.
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?
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.The Chiefs will not be losing anything. The deal is with Arrowhead which is owned by Jackson County Missouri.
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.
Might want to re-check your math on that one by approximately 6.75 million.Ummm, 30K x $25 a ticket would be 7.5 million. The chiefs aren't losing money on this game.
Even if $1,000,000 in concessions are sold, the $60,000 in sales tax isn't much money at all...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...
$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%?
I believe it's 6.5% in Story County but 6% is just an easier number to use. :wink: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).
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.