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Topic: Finances of Neutral Site Games

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Cincydawg

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Finances of Neutral Site Games
« on: January 25, 2019, 07:42:30 PM »
One example of why these are so popular, and likely to persist and grow:

https://www.ajc.com/sports/college/georgia-clemson-guaranteed-million-for-playing-chick-fil-kickoff-game/RO76EdYGEyfBzGUTSh6ReM/

Average payout for the game in recent years has been $5.2 million per school. Georgia makes about $3.5 million on average when it plays at home in Sanford Stadium.

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Anonymous Coward

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Re: Finances of Neutral Site Games
« Reply #1 on: January 25, 2019, 11:30:05 PM »
Based just on admissions**, Michigan Stadium brings in $6MM to $7MM^^ per game. So if those are total finances and if they are non-negotiable terms for M compared to UGa, I'm going to be super confused in addition to having already been disappointed the next time the M AD schedules a neutral game. They're a middle finger to fans and maybe the maize and blue Scrooge McDuck bank vault should feel the same way.

**(excluding everything else, like sponsorships, preferred seating "gifts," concessions, parking, and apparel royalties from merch sold at the stadium)
^^($6.7MM in 2018)

For those curious about the accounting
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LittlePig

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Re: Finances of Neutral Site Games
« Reply #2 on: January 26, 2019, 08:20:48 AM »
Who owns the TV rights to OOC neutral site games?  IF a TV network has the rights to all of a team's home games, but not neutral site games,  the TV network would be pissed if they schedule GA-Clemson at a neutral site instead of home and home.

On that note, do conference teams get paid more TV money if they host 7 games instead of 6?
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Cincydawg

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Re: Finances of Neutral Site Games
« Reply #3 on: January 26, 2019, 08:27:56 AM »
I've read several times that these neutral games are a bonanza for the athletic departments.  This is just one more example, and is why programs like these games.

I am guessing CBS would not have dibs on this game, which I also guess will be at night and not at 3:30.

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Anonymous Coward

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Re: Finances of Neutral Site Games
« Reply #4 on: January 26, 2019, 10:06:20 AM »
One of my points is that the numbers have to be off, right? (I.E., even larger for a neutral site game than $5ish-MM) Or else where's the incentive for Michigan, who based on behavior clearly does have a Jerry World incentive.
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FearlessF

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Re: Finances of Neutral Site Games
« Reply #5 on: January 26, 2019, 10:09:37 AM »
can't find it right now, but I'm guessing a Husker home game is worth more than 6 million

and then there's the revenue to the local businesses that the UNL is aware of and seems to value
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bayareabadger

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Re: Finances of Neutral Site Games
« Reply #6 on: January 26, 2019, 10:19:45 AM »
Quote from: Anonymous Coward on January 25, 2019, 11:30:05 PM
Based just on admissions**, Michigan Stadium brings in $6MM to $7MM^^ per game. So if those are total finances and if they are non-negotiable terms for M compared to UGa, I'm going to be super confused in addition to having already been disappointed the next time the M AD schedules a neutral game. They're a middle finger to fans and maybe the maize and blue Scrooge McDuck bank vault should feel the same way.

**(excluding everything else, like sponsorships, preferred seating "gifts," concessions, parking, and apparel royalties from merch sold at the stadium)
^^($6.7MM in 2018)

For those curious about the accounting

Might we be conflating money brought in and money made?
As in, Mich might bring in 6.7, but the net when accounting for operations costs is below the $5.2 threshold? 
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FearlessF

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Re: Finances of Neutral Site Games
« Reply #7 on: January 26, 2019, 10:23:09 AM »
that's true, gotta make sure it's a net number

a large portion of the operating cost is labor to local folks - also good for the local economy
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Cincydawg

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Re: Finances of Neutral Site Games
« Reply #8 on: January 26, 2019, 10:48:31 AM »
Well, if the figures in the AJC are correct, that is a large bonus for NS games, which is clearly why they are popular.

UGA already has one NS game a year that means 0.5 home games lost per year.  If they happen to play Tech in ATL, they would have only 2 pastries at home plus 3 or 4 conference games at home.

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FearlessF

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Re: Finances of Neutral Site Games
« Reply #9 on: January 26, 2019, 10:58:28 AM »
yup, the bean counters are rarely wrong

for Georgia it must be a plus on the $$$ side
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Cincydawg

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Re: Finances of Neutral Site Games
« Reply #10 on: January 26, 2019, 11:01:13 AM »
This is a pretty simple comparison obviously.  At least UGA does schedule home and away series with programs like Texas and UCLA and Clemson.  I infer those are less remunerative than the NS option, if available.
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Anonymous Coward

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Re: Finances of Neutral Site Games
« Reply #11 on: January 26, 2019, 11:40:41 AM »
Quote from: bayareabadger on January 26, 2019, 10:19:45 AM
Might we be conflating money brought in and money made?
As in, Mich might bring in 6.7, but the net when accounting for operations costs is below the $5.2 threshold?
I considered it - was hoping the AD's accounting sheet in the link would get a critical eye from multiple posters to produce an answer. From my interpretation of those numbers, it does look like other revenue (food, concessions, parking, etc.) vastly exceed gameday expenses. Which is revenue I excluded. And though these expenses are for all sports** and maybe the things I've mentioned are not comprehensive of all revenue/expenses, the proportion is telling, and implies that the final profit margin is not less than $5.2MM / game. If anything, it made me think it's larger (maybe much larger) than I originally posted.

** (the only breakaway number given just for football on the M AD accounting sheet was football ticket revenue - everything other category (expenses like gameday and revenue like parking, concessions, apparel) appear cumulative)
« Last Edit: January 26, 2019, 06:37:19 PM by Anonymous Coward »
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847badgerfan

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Re: Finances of Neutral Site Games
« Reply #12 on: January 26, 2019, 11:59:03 AM »
Quote from: bayareabadger on January 26, 2019, 10:19:45 AM
Might we be conflating money brought in and money made?
As in, Mich might bring in 6.7, but the net when accounting for operations costs is below the $5.2 threshold?
UW nets $3MM from home games, which is exactly what the Packers paid them to play in Lambeau against LSU. I don't know what they got to play LSU in Houston or Bama in Dallas.
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Brutus Buckeye

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Re: Finances of Neutral Site Games
« Reply #13 on: January 26, 2019, 12:12:27 PM »
Yeah I guess it does kinda suck for season ticket holders. 

For us TV viewers it doesn't really matter where the games are played. 
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