Re: Explain the economics of UF's Athletic Budget??
Ben Jones
"
Looking at UF's numbers here and a copy of FSU's financial statement that
I have, it looks like the most significant difference for 2013 was booster
contributions and conference payout.
UF lists booster contributions at $34 million, which is actually down a little bit from some previous years but is still far ahead of FSU.
UF also got about $21 million from the SEC for bowl game and television payouts. FSU got $19 million, which is a a pretty substantial increase from previous years (two years ago it was $12 million). That gap could be wider in coming years if the SEC Network explodes in popularity.
Disclaimer: I'm a writer, not a financial analyst. Sometimes I misread these things.
UF lists booster contributions at $34 million, which is actually down a little bit from some previous years but is still far ahead of FSU.
UF also got about $21 million from the SEC for bowl game and television payouts. FSU got $19 million, which is a a pretty substantial increase from previous years (two years ago it was $12 million). That gap could be wider in coming years if the SEC Network explodes in popularity.
Disclaimer: I'm a writer, not a financial analyst. Sometimes I misread these things.
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Follow me on Twitter at Twitter.com/WarchantBen.
Email me at ben@warchant.com"
"UF's budget has been $15-20 million more per year (combined with Boosters) than
Florida State (combined with Boosters).
The press is inconsistent in how they report those numbers but the accounting is not inconsistent.
A good bit of the budget differential is attributable to season ticket sales demand. The Gators are generally sold out of football tickets so their requirement to buy tickets is much higher than at Florida State where demand for season tickets has always been softer.
The demand is very correlated to population. You have 10 million Floridians within 150 miles of Gainesville -- which is a comfortable distance for people to drive in and drive home the same day -- versus only about 1 million within 150 miles of Tallahassee. The demographics within that 150 mile radiuses are much higher around Gainesville then Tallahassee (household incomes higher in Orlando, Jax, Tampa than the Panhandle which has 7 of the poorest counties in Florida).
The Gators require a person to give $1500 or more to buy two seats in the stadium, some years as much as $3500, where we've had seats available with no donation requirement. The demand for season tickets has been such that FSU has asked only $300 for two seats along the sideline while Florida has been able to command $3500 or more.
That's a huge difference (typically $8-10 million annual revenue) in athletic revenue especially when you combine it with 10k or more season tickets sold ($3-5 million additional).
We lost so many season ticket holders in the late 2000s that we were unable to increase contribution requirements. Now that the economy has turned around and we've sold out we'll look to increase ticket priority requirements for the 2016 season in order to be able to provide our 20 teams with more annual operating budgets. I am just completing a study of what our published rates are compared to other SEC and ACC teams and we are way below the average. The good news is our actual contribution by section is much higher than what we require but still less than what other schools publish as their minimum requirement.
There's no doubt that distance, and hotel prices, hinder demand for season tickets and therefore ticket revenue and what we can raise for the athletics department in ticket priority requirements.
The recent success in our program has driven Booster membership significantly and our average donation has grown as well. We are now over 18,000 members and $18 milllion where last year we were $15 million (a record) and the year before we were somewhere in the $13 million range (also a record). Many of the SEC schools, and a few ACC schools, are in the $20 million range from 10k to 15k members. Our average donation is about $1000 per member where the ACC and SEC is around $2,000 per member.
I've shared time with my counterparts and know what they are able to do and not do. We collaborate. One area we are stronger is in number of donors who are NOT season ticket holders. Most all of their donors do it to get season tickets. They admire our ability to raise money from people who are not ticket holders. Some 30 percent of Seminole Boosters are giving philantrhopically and not tied to ticket buys where very few do at UF and other schools.
Same thing with club seats and skyboxes; supply and demand allows them to charge more. Proximity to population increases demand and therefore price and funding.
Yes, the SEC television contract is currenly providing more revenue per year than the ACC but that hasn't always been the case. It is a part of it however.
Someone on here posted that we get more bang for our buck than anyone and that is absolutely true. Look at our team's collective results in our 20 men's and women's teams and compare them to everyone else. The bang for the buck at Florida State is very high.
The press is inconsistent in how they report those numbers but the accounting is not inconsistent.
A good bit of the budget differential is attributable to season ticket sales demand. The Gators are generally sold out of football tickets so their requirement to buy tickets is much higher than at Florida State where demand for season tickets has always been softer.
The demand is very correlated to population. You have 10 million Floridians within 150 miles of Gainesville -- which is a comfortable distance for people to drive in and drive home the same day -- versus only about 1 million within 150 miles of Tallahassee. The demographics within that 150 mile radiuses are much higher around Gainesville then Tallahassee (household incomes higher in Orlando, Jax, Tampa than the Panhandle which has 7 of the poorest counties in Florida).
The Gators require a person to give $1500 or more to buy two seats in the stadium, some years as much as $3500, where we've had seats available with no donation requirement. The demand for season tickets has been such that FSU has asked only $300 for two seats along the sideline while Florida has been able to command $3500 or more.
That's a huge difference (typically $8-10 million annual revenue) in athletic revenue especially when you combine it with 10k or more season tickets sold ($3-5 million additional).
We lost so many season ticket holders in the late 2000s that we were unable to increase contribution requirements. Now that the economy has turned around and we've sold out we'll look to increase ticket priority requirements for the 2016 season in order to be able to provide our 20 teams with more annual operating budgets. I am just completing a study of what our published rates are compared to other SEC and ACC teams and we are way below the average. The good news is our actual contribution by section is much higher than what we require but still less than what other schools publish as their minimum requirement.
There's no doubt that distance, and hotel prices, hinder demand for season tickets and therefore ticket revenue and what we can raise for the athletics department in ticket priority requirements.
The recent success in our program has driven Booster membership significantly and our average donation has grown as well. We are now over 18,000 members and $18 milllion where last year we were $15 million (a record) and the year before we were somewhere in the $13 million range (also a record). Many of the SEC schools, and a few ACC schools, are in the $20 million range from 10k to 15k members. Our average donation is about $1000 per member where the ACC and SEC is around $2,000 per member.
I've shared time with my counterparts and know what they are able to do and not do. We collaborate. One area we are stronger is in number of donors who are NOT season ticket holders. Most all of their donors do it to get season tickets. They admire our ability to raise money from people who are not ticket holders. Some 30 percent of Seminole Boosters are giving philantrhopically and not tied to ticket buys where very few do at UF and other schools.
Same thing with club seats and skyboxes; supply and demand allows them to charge more. Proximity to population increases demand and therefore price and funding.
Yes, the SEC television contract is currenly providing more revenue per year than the ACC but that hasn't always been the case. It is a part of it however.
Someone on here posted that we get more bang for our buck than anyone and that is absolutely true. Look at our team's collective results in our 20 men's and women's teams and compare them to everyone else. The bang for the buck at Florida State is very high.
Jerry Kutz is Senior Vice President of Seminole
Boosters and was the co-founder and columnist of the Osceola."
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