Back to the FSU Exit Thing - SCACCHoops.com

Back to the FSU Exit Thing

   Posted by Turtle Soup at  6/6/2012 4:32:45 PM  |  Follow us on Twitter: @scacchoops
Discuss     Bookmark and Share

FSU currently runs about a $2M budget deficit. Over the past couple of years, according to the USA Today, FSU’s spending has outstripped its revenues by roughly $8M. This from a school that can’t even win the middling ACC. Burt Reynolds or Lee Corso must be their staff accountant.

But let’s entertain the financial issues that FSU will face should it leave the ACC for a bigger payday in the Big 12. Mind you, no one knows what that payout would be. Big 12 teams reportedly receive $20M a year from the Big 12’s TV contract, although UT receives additional revenue from the Longhorn TV Network. The new ACC deal will average $17M equally distributed among its members.

Doak Campbell Stadium holds 82,300 spectators.  According to FSU, they sold out two games last year among their 7 home dates (OU: 84,392 and Miami: 82,322) and had an average attendance of 77,842. The OU game set the record for the largest crowd in the stadium’s history.

While TV contracts certainly bring in quite a bit of revenue, stadium gate receipts bring in a considerable amount, too. Let’s take a conservative estimate of FSU’s average ticket price: $20. At this price point, FSU should expect a per game gate receipt of $1.65Mand a yearly gate receipt across 7 home games of $11.52M. Using this price point for last year, FSU’s home gate receipt would be $10.9M. This represents $620K of lost opportunity revenue. Their 2010 numbers were worse: 71,270 average attendance at $20 per ticket resulting in a yearly gate receipt of $9.98M and a lost opportunity revenue of$1.54M. Hmmmm…FSU is running a $2M deficit and $620K plus $1.54M gets you just over $2M. SCIENCE!!!

The question FSU needs to ask itself is what attendance would look like facing a Big 12 slate of games. They would get OU or Texas every year at home, and they would still presumably have Miami and Florida (2010 figures: 82,324) at home every other year; meaning they will sell out 2 games a year like they currently do. So will an Iowa State game outdraw a game against Maryland (72,697)? Or will K State outdraw UVA (77,178)? Or Kansas outdraw NCSt (80,849)? Would Baylor outdraw BC or Wake (2010 figures: 75,301and 61,647, respectively)? Would TTU outdraw UNC or Clemson (2010 figures:70,157 and 72,228)?

Maybe you’re saying this all depends if FSU has a winning record. FSU was 10-4 in 2010 and 9-4 in 2011. But winning and excitement do matter. What will FSU draw after a couple of 3-4th place finishes in the Big 12? Given how much more OU and UT bring in (+$30M to $70M~) and spend (+$7M to $45M~) than FSU, which can’t even balance a budget in the lowly ACC and would have to pay $20-25M exit fees, how will FSU be able to ramp up spending to compete? Remember, they can't even win the ACC on a regular basis.

Financially, FSU can’t afford to jump to the Big 12. Like me at the Thanksgiving dinner table, FSU fans have big eyes.

This article was originally published at http://www.Turtle-Soup.com. If you are interested in sharing your website's content with SCACCHoops.com, Contact Us.

 

Post a Comment About this Article
Entry Link     0 Comment(s)
Subscribe  

There are currently no posts for this NewsBreaker


Post a Comment

Posting As:   Remember Me?
Subject:
Message:

Before submitting this form, please type the characters displayed above:


Search
Search
Advertisement
 
Poll
Where does your sports attention turn now?
NBA
MLB
NFL
College Football
Golf
Something Else (Soccer, NASCAR, etc)


Newsbreakers
Game Sim predicts the 2015 NBA Playoffs
4/17/2015 6:40:22 AM
Kyle Washington will transfer from NC State
4/16/2015 6:54:12 AM
NC State's Trevor Lacey headed to the NBA
4/15/2015 1:43:43 PM
Duke's Tyus Jones to Enter NBA Draft
4/15/2015 8:49:50 AM
Danny Manning Interview: Part Two
4/15/2015 8:46:11 AM
Durand Johnson transferring from Pitt
4/14/2015 7:42:52 PM
Duke's Justise Winslow to Enter NBA Draft
4/14/2015 7:41:56 PM
Danny Manning Interview: Part One
4/14/2015 9:20:41 AM
ACC Morning Linkfest 4/14/2015 - Departing to the NBA edition
4/14/2015 7:36:50 AM
Why was the ACC behind Championship Game deregulation?
4/13/2015 9:16:28 PM
Virginia's Justin Anderson departs for the NBA
4/13/2015 4:22:43 PM
Drexel transfer Damion Lee has Louisville in his final 5
4/12/2015 2:49:44 PM
Duke: Nike Hoops Summit Thoughts
4/12/2015 6:46:13 AM
Marcus Paige is returning to UNC
4/11/2015 7:09:35 PM
2015 National Champions - Great Video from @dukeblueplanet
4/11/2015 7:08:24 PM
Message Board
 
YBN Widget
RSS Feed  
SCACC Hoops has no affiliation to the NCAA or the ACC
Team logos are trademarks of their respective organizations (more/credits)