Crusty
Living Legend
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- May 21, 2012
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First of all, those are non-recurring expenses and should nof be viewed in the same context as normal operating results. Moreover, they might even be viewed as part of the capital budget. But even if capitalization is not permitted under FASB rules, it would certainly be reasonable for the Chancellor to recognize the temporary non-recurring nature and to not make long-term decisions based on such short-term term factors. Actually, it would be unworthy of such an intelligent guy as the Chancellor.Another follow up to post #241. Box rental, seats, food and drink averages $65-$70k per box - say 60 boxes (I have never counted them) equals $4 million. Season tickets average as low as $100 to as high as $250 so 20,000 season tickets X $150 conservative equals $3 million. Regular tickets at 15,000 x $20 x 6 games = $2 million. Advertising on the ribbon by companies is $30k so about $1 million. Local TV advertising, radio, etc just add another $1 million. Dome operations is a net zero based on profit from food & drink sales. Then you have to pay for rent to 6 other away game stadiums probably another $1-$2 million. Then there is other stuff that adds more.
So conservately a $12-$15 million drop in SUAD operating budget while Dome is being renovated due to football alone - that's not chump change. That's a killer to SUAD's operating budget and SUAD would probably need to "borrow" from SU the difference "especially if they had to double football coaching salaries" at this time. Now that would be a political hot potato up on the SU hill. Not saying it cannot be done but the timing is way off especially with a potential $2 billion capital campaign and the Dome getting up to 1/4 of the funding.
Personally I would look at it from this perspective. If we were to start winning again, with or without Shafer as I have to let the experts (Coyle & Sevyrud) make that decision, would be how much more revenue can I generate if I could create more of a demand for seating and therefore advertising. If we were to get to an average of 40,000 seats or more sold and raise the price per seat by $50 per seat over the season, there's another $2 million plus and extra 10,000 occupied seats at $150 per seat or another $1.5 million that's covers for the cost of paying what we need to be competitive in the P5 ACC conference. That doesn't include other positive revenue generated by increased demand to pay for double what we do now. I'm just looking at this from a business perspective - either lower costs (like how we pay current football salaries) or raise revenue to be competitive in the ACC at $2.5 million for HC and $500-$600 for each coordinator.
Also, next year already includes a ND Met-Life game.