winning and $$$

[jlb321_rivals110621]

a bit naive here .. but does Nebraska stand to take in significant more money by winning the conference or winning a national title? doesn't the money all get split equally amongst conf members anyway?

a lot of talk about paying huge sums of money for top coaches facilities etc but what is the return on this investment

as long as you win enough to put people in the stands does it pay more to win the conference, make the playoffs or win the national title?

if it is truly viewed as a business - does your margin improve by more than 2 million if you pay a head coach 5 million vs 3 million? Does the amount you make offset the increased travel expense to the conf champion game, playoff and potential national title game? Do all the bonuses you pay out in salary for a conference title or national title get offset by the increased revenue?

does 12-1 pay any different than 9-4 or 8-5?

just looking at things from a purely economics standpoint .. thanks



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[dinglefritz]

Gear sales is a big deal. You sell more crap if nothing else if you win big. I saw some figures one time on concession sales on a game day in and around the stadium and it was mind blowing. If I remember correctly the dollars generated surpassed the revenue from ticket sales and ticket sales just at face value are some where around 5.5 to 6 million dollars a game.

 

[nebcountry]

a bit naive here ...

Me too, but sounded like something interesting to look up.

Found the following article that states the B1G equally splits all post season bowl profits. Bizjournals article.

I've also read that the B1G has been equally sharing TV money for a long time.

 

[LBremser_rivals78367]

In addition to mentioned ticket sales, concessions and gear license fees, the required donation per seat amount will go up with successful seasons. For NU it has been on a downward trend for the past couple of seasons. It is my understanding that all net revenues from bowls, championship games and TV are split equally in the BIG.

 

[jlb321_rivals110621]

In addition to mentioned ticket sales, concessions and gear license fees, the required donation per seat amount will go up with successful seasons. For NU it has been on a downward trend for the past couple of seasons. It is my understanding that all net revenues from bowls, championship games and TV are split equally in the BIG.

Thanks. All valid -- I just wonder where the point of diminishing returns is.

At Nebraska ticket sales and probably concessions are going to be the same at 9-4 vs 12-1. Now if after having sustained great years you are able to increase the price of tickets by $50 that equates to an increase of 4.5 million (90K x 50).

Is it fiscally advantageous if you pay a head coach 5-6 million per year along with increasing assistant salaries and go 11-2, 12-1 etc with 4-5 conference championships per decade and a trip or 2 into the playoffs and then all the bonuses for those accomplishments as opposed paying middle of the road salaries with 9-4 and 10-3 years and an occasional divisional title. Understanding that there is no guarantee that paying massive salaries or investing huge sums in facilities guarantees success - so there is a great deal of financial risk in investing top money.

Don't get me wrong I want to win as bad as anyone else just trying to get a handle on the economics.

 

[NikkiSixx_rivals269993]

I've always thought that in the Big Ten, from an economic standpoint, it made sense to be just good enough to remain competitive and remain in good standing in the league. Reap the big paycheck, spend as little as possible to remain 'competitive'.

The way the grant & research money is awarded, that might have different circumstances that change that perspective.

 

[dinglefritz]

I've always thought that in the Big Ten, from an economic standpoint, it made sense to be just good enough to remain competitive and remain in good standing in the league. Reap the big paycheck, spend as little as possible to remain 'competitive'.

The way the grant & research money is awarded, that might have different circumstances that change that perspective.

You still reap huge financial benefits by winning big not to mention it makes it easier to sustain the 10-11 win seasons. Gear sales always spike nationally for a championship team. Now the correlation between spending on coaching staffs, winning and revenue is a pretty darned tough thing to arrive at. IMO, there are VERY few programs that have successfully bought winning records and MOST have failed trying to do that.