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

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LBJ said:
$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.
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I have to think this is either a mistake (the $16,000 in profits) or an accounting shift of some sort. If not, at least it stimulated the local economy (local brewers, delivery drivers, and folks pouring beer), and some of us were able to responsibly enjoy a cool malty beverage while enjoying outdoor football.
 

Sorry don't believe they made only $16,000 in profit. Almost impossible to make that low of a margin on a $7.50 beer. I'm guessing they allocated alot of costs to the beer sales that wouldn't normally be allocated to them OR someone made a mistake on that number (maybe left out a zero?? - $160,000 seems reasonable to me).
 

koppco1 said:
Sorry don't believe they made only $16,000 in profit. Almost impossible to make that low of a margin on a $7.50 beer. I'm guessing they allocated alot of costs to the beer sales that wouldn't normally be allocated to them OR someone made a mistake on that number (maybe left out a zero?? - $160,000 seems reasonable to me).
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I agree and it can't be if you read this article.
Bowling Green has a 2 beer limit at $5 a beer and nets between $20k-$25k annually. That is lowest figure given.
 

A group of trained monkeys could run the beer gardens and make more than this. In essence, we made enough to cover one or so of Maturi's pay checks for the made up job he's milking us for this year. We have a bunch of financial geniuses over at the U. They should just burn money instead of natural gas to heat the buildings on campus.
 

koppco1 said:
Sorry don't believe they made only $16,000 in profit.
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That's been reported as the University's profit (and not corrected as far as I have seen). That's not the total profit. The vendor's profit hasn't been disclosed. I would certainly hope the agreement provided for a greater share for the University, but given the way some of the other negotiations have gone over there, who knows?
 


Watch us LOSE money by having the vikings trash our stadium for a couple years.
 

Indi1006 said:
A group of trained monkeys could run the beer gardens and make more than this. In essence, we made enough to cover one or so of Maturi's pay checks for the made up job he's milking us for this year. We have a bunch of financial geniuses over at the U. They should just burn money instead of natural gas to heat the buildings on campus.
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Maybe that's the problem. Joel designed it and it had to be 'even' so the net includes the cost of providing beer free to patrons of wrestling and volleyball.
 

Gophers Lead The Way

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University of Texas considering selling alcohol at football, basketball and baseball games

More than 100,000 fans flock to most Longhorns football games but, at least for now, aren’t allowed to have alcohol at Darrell K Royal Texas-Memorial Stadium.

That could soon change. UT is considering selling alcohol at football, basketball and baseball games, according to men’s athletics director DeLoss Dodds. Texas would become the third Big 12 school to serve alcohol at football games after Iowa State and West Virginia.

“We talk about it constantly,” Dodds told The Daily Texan. “If we ever did it, we’d probably start with baseball. There’s something about it that doesn’t quite feel right, but there’s people telling me that it might be safer to serve it than not serve it. It’s an issue. I guarantee you we talk about it at almost every other staff meeting.”

The NCAA does not have any rules or policies regulating alcohol sales at regular season games. About 20 major college venues sell alcohol to general fans — and many more only offer it in stadium suites and luxury boxes — according to a 2011 survey by USA Today.

No athletics program generates more revenue than the one Dodds runs at Texas, which recorded $163.3 million in revenue during the 2011-12 fiscal year, $103.8 million of that being generated just by the Longhorns football program, according to USA Today. That marked the first time that one sport generated $100 million in one fiscal year.

The decision to sell at alcohol at athletic events, particularly home football games, would create another revenue stream for the most profitable athletics department in the country. But if that decision was made, Dodds said it wouldn’t be for the money.

“The thing I will say is that it’s not a money thing,” Dodds said. “If we did do it, people would say that they they’re just doing it for the money. It’s not a money issue. It’s a do-the-right-thing issue.”

http://dailytexanonline.com/news/20...hol-at-football-basketball-and-baseball-games
 




Go4Broke said:
Gophers Lead The Way

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“The thing I will say is that it’s not a money thing,” Dodds said. “If we did do it, people would say that they they’re just doing it for the money. It’s not a money issue. It’s a do-the-right-thing issue.”

http://dailytexanonline.com/news/20...hol-at-football-basketball-and-baseball-games[/I]
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Too many Longhorns fans get the shakes by halftime or what?
 

If $16k is the real profit then I think we should reach out to Jon Taffer from Bar Rescue. That guy will bring in BevIntel, boost profits by 20% and install some new POS systems.
 

$16,000 is about $2200 a game. I think some kids at the U make more than that for a good house party at $5 a cup.
 

badgergopher said:
$16,000 is about $2200 a game. I think some kids at the U make more than that for a good house party at $5 a cup.
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Sadly, I had the same thought. I knew a couple guys back in the day that darn near paid their tuition with a handful of parties.

I'm not saying no one else should be making money off this - but the U should be making way more than $16k off $1MM worth of beer. I'm willing to bet that the other stadiums in town and their teams make well more than that. Maybe they should, I don't know, actually talk to the folks from the other venues and see if there are ways to improve profitability...
 



If I was the U, I'd hire Tyra Collette & Billy Riggins from Dillon, TX.....they made 3x that in a bare dry west Texas field Homecoming weekend.
 

I suspect the U allocated a lot of cost to the beer sales in coming up with this figure and also had startup costs that it put fully into the year 1 figure rather than amortizing it over time (non-capital costs are ordinarily expensed in year 1 even if they have value beyond that year). I also think they went extra heavy on security in the alcohol area this year (there were security people all over the beer tent area) to make sure there were no problems. They could probably marginally lighten up the extra security staffing and that, in combination with the lack of startup costs, would make a big difference in profits.
 

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