Show Posts
1
Kansas State Basketball is hard / Impact of Ticket Sales on Overall Revenue
« on: March 19, 2016, 10:45:14 PM »
MIR was right; I don't want to further contribute to the oscar(ing) of the Carousel thread. So, I'll drop this here.
I took margins earlier today from the Equity in Athletics report. That wasn't really detailed info. I went further down the page (http://www.kstatesports.com/page/financial-info) and looked at the NCAA statements of revenue and expenses. While the numbers don't match up (no idea why; probably need Dax to weigh in), the more detailed breakdown illuminated a few things.
1) Ticket sales as a percentage of overall revenue is pretty damn static
For the five years of reports out there (2011-2015), here were ticket sale revenues and the percentage to overall revenue:
2011: $3,584,504 (34%)
2012: $3,844,944 (31%)
2013: $3,911,661 (33%)
2014: $3,541,239 (31%)
2015: $3,708,631 (31%)
We can fight about ticket sales and impacts to ticket sales, but in Jake's senior year, when we were preseason Top 5, we saw a 3% bump in percentage to overall revenue. To me, that speaks volumes.
2) Our average profit margin is relatively static
Average MBB profit every year, according to this report, is $5.9 million. Every single year, with the exception of 2012, saw a profit margin within a few hundred thousand dollars. The biggest deviation was 2012, where we saw an increase of ~$950k over average. That year had an unusually high distribution from the NCAA. I don't know why.
3) oscar's teams have exceeded average revenue 2/3 years.
Average revenue is $11.6 million a year. In 2013 and 2015, we've exceeded that margin twice. The year we missed, we were short about $375k. The years we were over? We were over about $250-350k.
All of this makes it easier to understand why we just gave oscar Frank's old contract. No matter what we do in this space, we're making the same amount of money. As long as oscar just keeps us in that ballpark, and keeps us out of trouble with the NCAA and doesn't give Currie headaches, I can see why Currie is hesitant to make a move. We don't want to pony up the $2.5 million because whatever we do doesn't seem to really move the meter one way or another, and that $2.5 million is basically a sunk cost because we just want to make a change.
Which, again, supports my narrative that the choice of oscar vs. Brad is going to have to be made by the big money donors that are providing a separate line item in the budget. I'm sure Currie would be open to it if someone is willing to write that check for $2.5 million and then add whatever it would cost to break Brad's contract. But he'd rather have someone write the same check to update the East Side club seats.
It's simplistic thinking, but looking at these numbers, I'm wondering if Currie looks at this like building a boathouse. It's just a big money expense that isn't really going to positively impact his revenues. Therefore, all he needs to do is put out some more videos about #Family, vilify the "youths" of today (and their devil weed), and he'll keep that core 11k season ticket holders shelling out the money to make his yearly plan.
I took margins earlier today from the Equity in Athletics report. That wasn't really detailed info. I went further down the page (http://www.kstatesports.com/page/financial-info) and looked at the NCAA statements of revenue and expenses. While the numbers don't match up (no idea why; probably need Dax to weigh in), the more detailed breakdown illuminated a few things.
1) Ticket sales as a percentage of overall revenue is pretty damn static
For the five years of reports out there (2011-2015), here were ticket sale revenues and the percentage to overall revenue:
2011: $3,584,504 (34%)
2012: $3,844,944 (31%)
2013: $3,911,661 (33%)
2014: $3,541,239 (31%)
2015: $3,708,631 (31%)
We can fight about ticket sales and impacts to ticket sales, but in Jake's senior year, when we were preseason Top 5, we saw a 3% bump in percentage to overall revenue. To me, that speaks volumes.
2) Our average profit margin is relatively static
Average MBB profit every year, according to this report, is $5.9 million. Every single year, with the exception of 2012, saw a profit margin within a few hundred thousand dollars. The biggest deviation was 2012, where we saw an increase of ~$950k over average. That year had an unusually high distribution from the NCAA. I don't know why.
3) oscar's teams have exceeded average revenue 2/3 years.
Average revenue is $11.6 million a year. In 2013 and 2015, we've exceeded that margin twice. The year we missed, we were short about $375k. The years we were over? We were over about $250-350k.
All of this makes it easier to understand why we just gave oscar Frank's old contract. No matter what we do in this space, we're making the same amount of money. As long as oscar just keeps us in that ballpark, and keeps us out of trouble with the NCAA and doesn't give Currie headaches, I can see why Currie is hesitant to make a move. We don't want to pony up the $2.5 million because whatever we do doesn't seem to really move the meter one way or another, and that $2.5 million is basically a sunk cost because we just want to make a change.
Which, again, supports my narrative that the choice of oscar vs. Brad is going to have to be made by the big money donors that are providing a separate line item in the budget. I'm sure Currie would be open to it if someone is willing to write that check for $2.5 million and then add whatever it would cost to break Brad's contract. But he'd rather have someone write the same check to update the East Side club seats.
It's simplistic thinking, but looking at these numbers, I'm wondering if Currie looks at this like building a boathouse. It's just a big money expense that isn't really going to positively impact his revenues. Therefore, all he needs to do is put out some more videos about #Family, vilify the "youths" of today (and their devil weed), and he'll keep that core 11k season ticket holders shelling out the money to make his yearly plan.
.
