The U made about $16K in profits in beer sales last year at TCF Bank Stadium

[BleedGopher]

per their lobbyist:

Beer sales have been brisk at the stadium, Iverson conceded, with an estimated $990,000 in sales in the first season alone. But only about $16,000 in profits ended up in the university’s pocket, he said.

http://www.startribune.com/politics/statelocal/195484411.html

Go Gophers!!

 

[WorkingMyTailOff]

Wha?? That blows me away.

 

[RailBaronYarr]

Not shocked by this. The value in being able to provide alcohol in the stadium was never the profit it would bring but the ability to charge higher prices for the suits/club seats - consistent or close to the amount other venues in town charge. Without alcohol these boxes/seats lost their value as entertainment to many corporations and were willing to pay far less, even if the drop in operating costs from lack of alcohol to the U was very marginal.

We already know how much the U paid out to suite-holders when the alcohol thing became solidified in 2009.. a 10% reduction the first year in suite price and 20% the second year. While a part of this may have been due to team performance, easy to say the $1.3M they lost in total was largely influenced by lack of alcohol.

 

[RailBaronYarr]

Wha?? That blows me away.

Perhaps they rolled in all the alcohol costs in the suites to the sales in the general section? Didn't the U contract out for the sales of the beer? I would imagine they took a hefty cut.

Also, I really dislike this type of argument:

“That’s almost a million dollars’ worth of beer,” Schoen said. “That beer had to be manufactured, that beer had to be delivered, that beer had to be sold at the stadium and those are all jobs.”

He estimates that the state reaped about $80,000 in tax revenues from a single season of beer sales in a single university stadium.

“Am I going to fix the budget hole with this? Absolutely not,” he said, “but it’s still jobs, it’s still tax revenue.”

That money would have been spent on other things (most likely) in the state. When people make this claim they act like the $6 they spent on beer would have just sat in their bank account all year otherwise. Nope. They would have bought one more beer at a bar, chosen an extra hot dog at the game, gone to one more movie, a cheap Twins game, etc with that $6 instead.

 

[station19]

Not shocked by this. The value in being able to provide alcohol in the stadium was never the profit it would bring but the ability to charge higher prices for the suits/club seats - consistent or close to the amount other venues in town charge. Without alcohol these boxes/seats lost their value as entertainment to many corporations and were willing to pay far less, even if the drop in operating costs from lack of alcohol to the U was very marginal.

We already know how much the U paid out to suite-holders when the alcohol thing became solidified in 2009.. a 10% reduction the first year in suite price and 20% the second year. While a part of this may have been due to team performance, easy to say the $1.3M they lost in total was largely influenced by lack of alcohol.

What you say is true but supposedly the U's share was 1/3 of the 990,000. The other 2/3 covered the cost of sale and the direct labor. The question becomes what other expenses are allocated against the supposed 333,000 share of the U. I would assume suite and club expenses, but it does raise a good question.

 

[dpodoll68]

At the risk of repeating myself:

This is what we're fighting about?!?!?!? $16 k in profits?!?!? This is what the U sold its soul for!?!?!?!? For the equivalent of one person working a full-time job making $8 an hour?!?!?!? You've got be f*cking kidding me!!!! Am I being punked??? Is this real life?!?!?

 

[Gopherdrummer]

I would be interested to see the income statement for the beer sales, and figure out where they could improve margins moving forward. The U could probably increase margins by selling beer throughout the concourse instead of just at the west end zone. Implementation costs for taps and lines will cost a lot up front, but in the long run it would be cheaper than renting out tents and a vendor to sell the beer and wine.

My guess is the U waits to make a decision to migrate beer sales throughout the concourse until the Vikings agree to include it in their stadium upgrades. A profit is still a profit. I still think the U sold out on this issue, but if you are going to do it, and students are still going to find ways to buy beer, you might as well figure out how to make hefty profits (hopefully increasing prices is not the first thing that the U thinks of).

 

[Catechol]

Sort of agree with dpodoll68. The $16K in profit doesn't tell the whole story. Maybe there is additional indirect profit if the beer sales lead to an increase in ticket sales. However, there could also be indirect loss if there are additional indirect costs not factored into the profit-loss such as increased security, etc. Is it really worth the U compromising its policies?

 

[GopherinPhilly]

Lets be clear...the beer garden was never the goal of the University...it was the legislature that said beer for all or none. If the legislature had stayed out of it...the U would have had beer in the club seating and suites and no where else. But once the law came down...it was either do something like they did or keep losing $500k per year in lost suite and club revenue.

Having had many corporate parties in stadium suites over the years...I can assure you that we would never select a venue that didn't have alcohol service. The whole point is to get my sales people in the room with customers and be happy. It would be like a dry golf outing...wtf? Not gonna happen except with the most extreme goody goody companies.

Alcohol sales is all about the suites and nothing more...that the U made a profit on beer sales is great...but selling out the suites next year at full price is the real gem!

 

[Lakeville Goldy]

per their lobbyist:

Beer sales have been brisk at the stadium, Iverson conceded, with an estimated $990,000 in sales in the first season alone. But only about $16,000 in profits ended up in the university’s pocket, he said.

http://www.startribune.com/politics/statelocal/195484411.html

Go Gophers!!

This almost can't be true. If that is true, than how is it possible any of their other concessions make money? If you look at the cost structure vs. markup, beer should be much more profitable than most of the other items.

I honestly wonder if they missed a zero. $160,000 would sound about right based off a million in sales.

If it is true, then in the words of my buddy WHBBrewer, the U really could screw up a one car funeral procession, because it should not be possible to make that small of an amount of money off $1MM of sales of beer.

 

[Gopherdrummer]

This almost can't be true. If that is true, than how is it possible any of their other concessions make money? If you look at the cost structure vs. markup, beer should be much more profitable than most of the other items.

I honestly wonder if they missed a zero. $160,000 would sound about right based off a million in sales.

If it is true, then in the words of my buddy WHBBrewer, the U really could screw up a one car funeral procession, because it should not be possible to make that small of an amount of money off $1MM of sales of beer.

That could be the case, although it could be possible beer sales make less money than concessions due to additional expenses related to setting up and maintaining the beer gardens (tents), 3rd party labor if it is contracted, portable storage. We just don't know this information unless we saw financial statements for the operation.

 

[Go4Broke]

At the risk of repeating myself:

This is what we're fighting about?!?!?!? $16 k in profits?!?!? This is what the U sold its soul for!?!?!?!? For the equivalent of one person working a full-time job making $8 an hour?!?!?!? You've got be f*cking kidding me!!!! Am I being punked??? Is this real life?!?!?

Get over it. There were less drunks in the stadium last year than the year before. Beer for all in the Gopher's Stadium is here to stay. Have one on me. Or two if you insist.

 

[dpodoll68]

Get over it. There were less drunks in the stadium last year than the year before. Beer for all in the Gopher's Stadium is here to stay. Have one on me. Or two if you insist.

I don't feel the need to drink while watching amateur sporting events. I also don't feel the need to drink while watching my son's swimming lessons or picking up my daughter from daycare. But that's just me.

 

[Nate]

Get over it. There were less drunks in the stadium last year than the year before. Beer for all in the Gopher's Stadium is here to stay. Have one on me. Or two if you insist.

How much of that was due to no Wis or Iowa at home? Let's see how this coming year plays out.

 

[Gopher Bandanna Guy]

I don't feel the need to drink while watching amateur sporting events. I also don't feel the need to drink while watching my son's swimming lessons or picking up my daughter from daycare. But that's just me.

Does this mean you DO feel the need to drink while watching professional sporting events?

I don't feel like I need a beer at my boys' little league practice or Cub Scout events either. But then they don't go out and perform tantamount to laying an egg in the first half against the Badgers or Huskers either. The beer is there for those who want it. And if you don't, then don't buy it.

 

[dpodoll68]

Does this mean you DO feel the need to drink while watching professional sporting events?

No, not particularly. But I realize that adults watching paid adults play professional sports is a reasonable and appropriate venue for drinking alcohol.

The beer is there for those who want it. And if you don't, then don't buy it.

This is a pretty poor rationale. What's the difference between the need to have beer at a college football game, but not at a little league baseball game or a piano recital? Surely there are people at those events who "want it". Why don't we set up kegs for purchase at Cub Scout events? I'm certain there are people who would like strippers at Gopher games. They'd be there for those who "want them". If you don't want them, don't look, right?

 

[LBJ]

$900,000 in sales / $7.5 per beer = 120,000 beers sold.

16,000 in U's pocket / 120,000 beers = 0.13 cents per beer.

I know that a beer doesn't cost $7.37. an somebody who understands money stuff explain this to me?

I feel like a lot of money disappeared somewhere.

 

[Nate]

This is a pretty poor rationale. What's the difference between the need to have beer at a college football game, but not at a little league baseball game or a piano recital? Surely there are people at those events who "want it". Why don't we set up kegs for purchase at Cub Scout events? I'm certain there are people who would like strippers at Gopher games. They'd be there for those who "want them". If you don't want them, don't look, right?

You are not allowed to bring alcohol to Cub Scout events.

 

[dpodoll68]

You are not allowed to bring alcohol to Cub Scout events.

I know. But why? People "want it". I'm a very casual and occasional drinker, but I could've used a highball to get through my son's last Cub Scout 3-hr marathon meeting. There are all kinds of things that people "want" all the time. There's a time and a place, and it's generally considered and agreed upon what that time and place are. I had mistakenly thought that it was common sense that an amateur sporting event is neither the time nor the place for alcohol. It seems pretty amazingly stupid that alcohol must be served given that the majority of the student body (and by extension the student section) can't even buy alcohol legally. I should be able to enjoy an amateur sporting event with my young son without the moron in front of me double-fisting beers. Despite what some may think, drinking whenever and wherever you want is neither a Constitutional nor a God-given right. Drink yourself stupid in the parking lots beforehand, by all means - I can avoid that with my son and still enjoy the game. Unfortunately, I can't even do that anymore, as I don't want to subject my young son to morons drinking to excess. It may not be a problem or an issue yet, but it will be. I attended many, many games in the Metrodome, and trust me - it will be. This isn't even speaking to the unnecessary liability to which the U is exposing itself when some overserved idiot drives home and kills somebody. The whole thing is tacky, unseemly, and disgusting. This is supposed to be a classy and sophisticated institution of higher learning, not a frickin' frat party.

 

[Gopher Bandanna Guy]

This is a pretty poor rationale. What's the difference between the need to have beer at a college football game, but not at a little league baseball game or a piano recital? Surely there are people at those events who "want it". Why don't we set up kegs for purchase at Cub Scout events? I'm certain there are people who would like strippers at Gopher games. They'd be there for those who "want them". If you don't want them, don't look, right?

The difference is my kids don't routinely let me down like the Gophers do, thereby subduing the need to self-medicate and enjoy the hoppy, frothy taste of a locally made beer as a backdrop to our terrific stadium and lackluster fanbase. I presume for you that tailgating with alcohol in a University parking lot, or at the Alumni Center is objectionable as well?

Many adults, like myself, enjoy alcohol responsibly and are not the mythical drunken boors that apparently overtook The Bank all last year (I obviously didn't see any, as I was clearly part of the problem)

If the U can make additional money for the athletic department via responsible beer sales, I'm all for it. Even at a razor thin margin. Why? Because I'm a selfish and uncouth dullard, who alters his mind occasionally to have a good time.

 

[Unregistered User]

*&^!#*&^!#*&^!#*&^!#ing lock this thread. Not this again.

 

[Gopher Bandanna Guy]

I should be able to enjoy an amateur sporting event with my young son without the moron in front of me double-fisting beers. Despite what some may think, drinking whenever and wherever you want is neither a Constitutional nor a God-given right. Drink yourself stupid in the parking lots beforehand, by all means - I can avoid that with my son and still enjoy the game. Unfortunately, I can't even do that anymore, as I don't want to subject my young son to morons drinking to excess. It may not be a problem or an issue yet, but it will be.

Perhaps a 'TCF Bank Family Section' is in order then. Most professional arenas and ballparks offer seating in alcohol-free zones. I go to probably 10-15 professional sport events every year, NBA, MLB, Minor leagues, etc., many with my kids. Very rarely if ever do we bump into these 'excessive drinkers' that are purportedly all over the place. At Minor league parks where they sell 32 oz beers for $5, I've not yet run into a rude drunk with my son that I had to explain to him. Maybe I'm lucky. Or maybe you're just overly sensitive. Chill out and have a... ... oh nevermind.

As for a 3-hour Cub Scout meeting, I sympathize, and I've been there. Concealable flasks were made for a reason.

 

[Gopherdrummer]

$900,000 in sales / $7.5 per beer = 120,000 beers sold.

16,000 in U's pocket / 120,000 beers = 0.13 cents per beer.

I know that a beer doesn't cost $7.37. an somebody who understands money stuff explain this to me?

I feel like a lot of money disappeared somewhere.

It is hard to tell where the money went without seeing the financial statements related to beer sales. Operating costs could have been high given they had to rent the tents for the beer garden. They might have had to increase security. Employees for the beer garden could have been provided via a third party which could have had admin fees attached to the employment contract.These details might be out in the open if someone did a few google searches. Additionally, there could have been an extraordinary one time expense that the public isn't aware of. We also don't know who much of a cut of sales went to the vendor, and if that included equipment.

That being said, in the long run, if the U wants to actually make money off of beer sales it might be advantageous to distribute sales to the concessions in the concourse. Tap and line installations would be pricey, but you only need to do that once. I am not saying that beer sales at Amateur sports is the right thing, but if the U is going to continue selling at sporting events, they might as well operate efficiently and make as much money as possible. The opportunity cost to do otherwise is too large to give it a pedestrian effort.

 

[4four4]

I know what they paid for their beer and I call b.s.

 

[The Goofy Gopher]

I know. But why? People "want it". I'm a very casual and occasional drinker, but I could've used a highball to get through my son's last Cub Scout 3-hr marathon meeting. There are all kinds of things that people "want" all the time. There's a time and a place, and it's generally considered and agreed upon what that time and place are. I had mistakenly thought that it was common sense that an amateur sporting event is neither the time nor the place for alcohol. It seems pretty amazingly stupid that alcohol must be served given that the majority of the student body (and by extension the student section) can't even buy alcohol legally. I should be able to enjoy an amateur sporting event with my young son without the moron in front of me double-fisting beers. Despite what some may think, drinking whenever and wherever you want is neither a Constitutional nor a God-given right. Drink yourself stupid in the parking lots beforehand, by all means - I can avoid that with my son and still enjoy the game. Unfortunately, I can't even do that anymore, as I don't want to subject my young son to morons drinking to excess. It may not be a problem or an issue yet, but it will be. I attended many, many games in the Metrodome, and trust me - it will be. This isn't even speaking to the unnecessary liability to which the U is exposing itself when some overserved idiot drives home and kills somebody. The whole thing is tacky, unseemly, and disgusting. This is supposed to be a classy and sophisticated institution of higher learning, not a frickin' frat party.

Your whole opinion is based on the assumption that college football is still "amateur" in the same way piano lessons and cub scouts meetings are "amateur". However, in a business that literally makes 10's of millions of dollars per year, I feel like these aren't equivalent. D-I college football has shown it's main incentive is to make money. Precedent had previously been set across the country that alcohol should not be widely available to students at a football game. Because the legislators passed the "all or none" bill, the only option was to sell alcohol to nobody (maintain moral incentive and status quo) or everybody (achieve financial incentive). If college football were still "amateur" like cub scouts, I believe the moral incentive would have been maintained. Therefore you're comparing apples to oranges IMO.

 

[GeniusGopher]

When people make this claim they act like the $6 they spent on beer would have just sat in their bank account all year otherwise. Nope. They would have bought one more beer at a bar, chosen an extra hot dog at the game, gone to one more movie, a cheap Twins game, etc with that $6 instead.

Nope. Speak for yourself. Not all of us pinch pennies. Whether I spend $10 at the game or $100, it won't influence what I spend in Dinkytown later on, nor the rest of the weekend, nor whether I go see a new movie just out, etc. So yes, money NOT spent at the stadium WOULD sit in my bank account. Because the money for other things is already budgeted.

 

[pharmacygopher]

No, not particularly. But I realize that adults watching paid adults play professional sports is a reasonable and appropriate venue for drinking alcohol.



This is a pretty poor rationale. What's the difference between the need to have beer at a college football game, but not at a little league baseball game or a piano recital? Surely there are people at those events who "want it". Why don't we set up kegs for purchase at Cub Scout events? I'm certain there are people who would like strippers at Gopher games. They'd be there for those who "want them". If you don't want them, don't look, right?

Here's the thing. I once mentioned that players shouldn't be ripped because they are student athletes....and I got ripped. People said that the U and NCAA makes millions off these 'kids'. Well it can't go both ways. It's either an amateur sport and these kids shouldn't be criticized or it's a for-profit money making sport. Which is it?

 

[Gopher Bandanna Guy]

Here's the thing. I once mentioned that players shouldn't be ripped because they are student athletes....and I got ripped. People said that the U and NCAA makes millions off these 'kids'. Well it can't go both ways. It's either an amateur sport and these kids shouldn't be criticized or it's a for-profit money making sport. Which is it?

I feel your pain Pharma. Amateurism left revenue generating division I NCAA sports a long, long time ago.

 

[Lakeville Goldy]

Your whole opinion is based on the assumption that college football is still "amateur" in the same way piano lessons and cub scouts meetings are "amateur". However, in a business that literally makes 10's of millions of dollars per year, I feel like these aren't equivalent. D-I college football has shown it's main incentive is to make money. Precedent had previously been set across the country that alcohol should not be widely available to students at a football game. Because the legislators passed the "all or none" bill, the only option was to sell alcohol to nobody (maintain moral incentive and status quo) or everybody (achieve financial incentive). If college football were still "amateur" like cub scouts, I believe the moral incentive would have been maintained. Therefore you're comparing apples to oranges IMO.

+1

I've been to amateur baseball games where beer is served. Usually that's a big part of the money that the team uses to travel. And I think the Olympics serve alcohol at the events there (although that's another classic example of amateurism gone professionalism).

I'm not saying DPO is wrong, and obviously he's entitled to his opinion. But I think the B1G proved how critical tradition is when they added Maryland and Rutgers. It's all about the Benjamins...

I personally don't see it as a big deal that alcohol is served even though some students are under age. Now days I'm not sure "most" is accurate. I believe the median age is 21 or over. Either way, they'd have to be living in a vacuum not to see drinking going on around them on a daily basis, not to mention before the game.

I am surprised that they didn't have wrist bands for folks wanting beer. Then at least security could grab anyone without a band that had beer...

 

[gophmeister]

$900,000 in sales / $7.5 per beer = 120,000 beers sold.

16,000 in U's pocket / 120,000 beers = 0.13 cents per beer.

I know that a beer doesn't cost $7.37. an somebody who understands money stuff explain this to me?

I feel like a lot of money disappeared somewhere.

I'm guessing there are some sort of start up costs associated with serving alcohol. It seems odd to me to that you can sell almost $1 millions in alcohol and yet only get about 2% profit. But people are right. The ability to sell alcohol has more to do with suites than anything else.