DarrenTheGreek
Gov. Victory Bell Ringer
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I don't know what the actual numbers are right now, but let's say there are 28,000 season ticket holders. Cutting the prices by x% across the board would require the number of season ticket holders to increase by the same x% - just to break even. If they cut season ticket prices by 10% across the board, will there be an additional 2,800 season ticket holders? If they cut by 20%, will there be an additional 5,600 season ticket holders? I very much doubt it, in either instance.
dpo - We disagree on this topic and I'll give you my reasons and how I came to that conclusion. I apologize for the length of this response but I think this topic is too complex to try and summarize in a 4-5 sentence post.
Potential season-ticket holder base
First, I think give or take, our potential season ticket holder based is 35,000. The capacity of TCF is 50805. Approximately 10,000 are set aside for students and 3,000 for visitors. For the sake of argument, I'm going to assume that 2000 are "premium" (i.e., suites, club) and the University will have about 1,000 they hold for their own purposes. That gets us to 34,805 so I'm just going to round up.
SUMMARIZE: 35,000 potential season ticket holders
Previous donation sections and amounts
The previous donation sections were the 16 sections between the 20’s. In my quick math, it appears that accounts for about 10,500 seats. However; a media report I saw awhile ago claimed that only 8,000 seats were originally requiring a donation. I’m going to say give the benefit of the doubt to the media and say only 8,000 seats required a donation.
These donation amounts were $100, $250 and $500. I don’t have the detail as to the size of each section and how many people were signed up but let’s just assume that the “Average” donation prior to the increase was $250.
SUMMARIZE: 8,000 seats requiring an average donation of $250
New donation sections and amounts
The media reports state that 28,000 seats now require a donation. Again, I haven’t done the math but let’s just say that the average donation amount is now $350. (Note: I think that is high but I’m trying to give the benefit of the doubt).
SUMMARIZE: 28,000 seats requiring an average donation of $350
Season Ticket Holder Numbers
Prior to the donation increases in 2014 the season ticket holder count was 33,385. This number was from a Star Tribune article I read about a year ago. Now of that 33,385, if 8,000 were paying an average seat donation of $250 and $330 for the ticket itself, that revenue would be $4.640M. If the remaining 25,385 holders were only paying $330 for the ticket itself, that revenue would be $8.377M. TOTAL REVENUE UNDER OLD MODEL: $13,017,050
With the new donations, the 2019 season ticket holder count is 21,689. Let’s say that of the 7,000 NON-DONATION seats, about 5,000 are being bought by season ticket holders. That means 16689 donation seats are being bought. 16689 x ($350 avg donation + $330 ticket) = $11,348,520 of revenue for donation seats. The non-donation seats are 5000 x $330 = 1,650,000 in revenue. REVENUE UNDER NEW MODEL: $12,998,520
These are nearly identical. I will readily admit that under the new model you are likely reaching the same amount of revenue but giving yourself a chance to maximize more revenue if you get new customers. However; I think this is a short-sighted approach because you are sacrificing 11,696 paying customers to essentially break even.