STrib: Beer and wine no problem at U's TCF Bank stadium, report says

[BleedGopher]

per the STrib:

University officials say they want to continue the sales after its two-year pilot project ends in July. The plan will have to be approved by the Legislature.

A new report shows that the number of alcohol-related incidents at the stadium was lower in 2013 than 2010, two years before alcohol sales began.

“It really has not been the problem that some might have expected it would be,” said Vice President Pamela Wheelock.

http://www.startribune.com/sports/gophers/245414221.html?utm_source=dlvr.it&utm_medium=twitter

Go Gophers!!

 

[tikited]

per the STrib:

University officials say they want to continue the sales after its two-year pilot project ends in July. The plan will have to be approved by the Legislature.

A new report shows that the number of alcohol-related incidents at the stadium was lower in 2013 than 2010, two years before alcohol sales began.

“It really has not been the problem that some might have expected it would be,” said Vice President Pamela Wheelock.

http://www.startribune.com/sports/gophers/245414221.html?utm_source=dlvr.it&utm_medium=twitter

Go Gophers!!

Good. I like a cold beer at halftime.

 

[theTurning]

you don't say.

 

[JoeDirt]

Makes sense. More money and convenience.

Also, instead of sneaking in "Admiral Nelson" I drink beer, which means I don't get so freakin' lambasted.

Both me and the U win.

 

[Spoofin]

A new report shows that the number of alcohol-related incidents at the stadium was lower in 2013 than 2010, two years before alcohol sales began.

Too funny ^^^

So folks will find a way to drink whether or not the U gets revenue from it. Wow. Who would have thought that???

 

[Pewterschmidt]

Too funny ^^^

So folks will find a way to drink whether or not the U gets revenue from it. Wow. Who would have thought that???

Are we actually pulling a profit yet? How someone selling keg beer for $7.50 can lose money is mindboggling.

 

[mggoph]

Are we actually pulling a profit yet? How someone selling keg beer for $7.50 can lose money is mindboggling.

The university took in $181,678 as its share of the profits on just over $1 million in beer and wine sales during the 2013 season, according to the report.

In March, after the first season, the university initially reported a $15,000 loss on alcohol sales because of high start-up costs. But after renegotiating its contract with the vendor, the university ended up with $21,118 in net profits for 2012, Wheelock said. The funds go to the university’s athletics program.

 

[bleedsmaroonandgold]

Are we actually pulling a profit yet? How someone selling keg beer for $7.50 can lose money is mindboggling.

It was bad accounting. The initial report that we lost money while selling $7.50 beer really meant that we just did not make enough money to fully cover all of the one-time costs of installing all of the tubes and infrastructure that will allow us to sell $7.50 beer for the rest of eternity. It would be like, after the 2009 season, saying that the U lost money on the stadium because one year of ticket sales did not pay for all of the construction costs.

As for there being no problems, it should hardly be surprising that we did not have problems carrying out an activity that is successfully carried out at stadiums and arenas accross the country.

 

[WindyCityGopher]

The university took in $181,678 as its share of the profits on just over $1 million in beer and wine sales during the 2013 season, according to the report.

In March, after the first season, the university initially reported a $15,000 loss on alcohol sales because of high start-up costs. But after renegotiating its contract with the vendor, the university ended up with $21,118 in net profits for 2012, Wheelock said. The funds go to the university’s athletics program.

I'm struggling to understand how they can be netting just 18% margin on beer selling for $7.50/cup. Who else does the athletics department share the profits with? Profits mean their cut after all expenses are accounted for (sorry if that's insulting to all GH'ers with brains who know that), so either they're giving a chunk to another source or their operating costs are really high. Either way, it looks like they should be netting a higher amount of gross revenue than they currently are.

 

[2nd Degree Gopher]

I'm struggling to understand how they can be netting just 18% margin on beer selling for $7.50/cup. Who else does the athletics department share the profits with?

The profits are shared with the vendor who actually buys the beer, has it delivered to the stadium, keeps it cold, hires people to stock it and sell it, returns or stores the unused inventory and procures the legally required liquor liability insurance. As I understand it, the U took in about 18% of the gross sales without any risk--other than looking bad if something went wrong. I can't say how that compares to what the Vikings get, but given the restrictions the U places on sales (limited points of sale, no sales after halftime) that figure doesn't seem absurdly low to me. It would be interesting to know what the U's share of the profits is compared to other similar situations.

 

[Gopher Warrior]

the one-time costs of installing all of the tubes and infrastructure that will allow us to sell $7.50 beer for the rest of eternity.

What tubes were installed? What infrastructure? The pretty $20 tents?

 

[Dr.Don]

What tubes were installed? What infrastructure? The pretty $20 tents?

No, GW. When they threw in advertising costs to LateNightHoops, the return on that investment proved to be -2%.

 

[station19]

Has nothing to do with the U meeting margins or percentages. It's all about negotiated agreements.

Isn't Aramark the one who sells the beer? How much longer does their contract with the U last. They're horrible.

 

[Lakeville Goldy]

The profits are shared with the vendor who actually buys the beer, has it delivered to the stadium, keeps it cold, hires people to stock it and sell it, returns or stores the unused inventory and procures the legally required liquor liability insurance. As I understand it, the U took in about 18% of the gross sales without any risk--other than looking bad if something went wrong. I can't say how that compares to what the Vikings get, but given the restrictions the U places on sales (limited points of sale, no sales after halftime) that figure doesn't seem absurdly low to me. It would be interesting to know what the U's share of the profits is compared to other similar situations.

I'm wondering if the bolded part is changing. When we went to the hockey game at the Bank they were selling beer at all the stands and they had the pricing up on the board like it was a permanent thing. Maybe moving to all the stands in anticipation that they'll be there for the Vikes anyway??