They would have to hire 715 additonal security staff at $20/hour for 7 games at 5 hours per gameday to spend $500K. If more than 100 were actually hired, that's beyond overkill. Even that would only cost a total of $70K. That doesn't explain where much of the $$ went.
Like I said, I’d like an explanation for how the number was calculated. If the gross sales are $990,000 and the University profit was $16,000 then there remains $974,000 to be accounted for. I haven’t seen the contract or the calculations, but either the U or the vendor needed to procure the inventory, the labor, the equipment (tents, registers, cups, etc.), the security, the insurance, etc., plus the vendor needs to make a profit. What’s “reasonable” return for the vendor depends a lot on the risk allocation. I would imagine that the liquor liability insurance for selling beer in a stadium with thousands of underage people in it is fairly costly, significantly higher than for a more controlled environment like a bar or restaurant.
The $16,000 number is surprisingly low, regardless of how the risk is allocated. I would have concerns if the U profit was $16,000 and the vendor profit was also $16,000 and I would have concerns if the U profit was $16,000 and the vendor profit was $600,000. But they would be different concerns. If it turns out that the University deducted all of its extra expenses as part of their calculation, but didn’t account in that number for a $400,000 increase in preferred seat revenue that is attributable to the ability to charge more for suites, loge boxes, etc., then I am less bothered by the $16,000 number.
