Inside the Numbers: Football Ticket Revenue
by Will Stewart, TechSideline.com
TSL Extra, Issue #20

We talk a lot about stadium expansion, increased ticket sales, and the growth in season ticket sales for Virginia Tech football, but no one has ever asked the question, "How does that translate into real dollars in Virginia Tech's pocket?"

Since 1993, when the Hokies started their bowl run, the average cost of a Tech football ticket has increased from roughly $20 to $31 (in 2002). Attendance is up dramatically, with sellouts becoming the norm instead of the WVU-UVa exception, and stadium capacity has ebbed and flowed.

With South end zone expansion nearly complete, Lane Stadium's capacity will increase to 63,459 seats, up from a previous high of 56,272 in 2000. As the Hokies get ready to open their expanded stadium and make more money from ticket sales than ever before, it bears taking a look back at ticket revenue during the Beamer Bowl era (1993-2001).

Using ticket costs, season ticket sales figures, and game attendance figures (plus a few wild guesses), we'll take a stab at trying to figure out what VT's football ticket revenue has been since 1993.

As usual, if you're an "executive summary" type of person, you can skip over the next few sections and go straight to the "Revenue Calculations" section. If you like to know how the results were reached, in mind-numbing detail, then slog your way through the next few sections for explanations.

Required Data

To figure out ticket revenue, all we need is attendance figures for each game from 1993-2001, and the cost of a ticket for each game. You then multiply the attendance figure by the ticket cost to get revenue.

Of course, comp tickets (which are free tickets given out to friends of the university, recruits, players' families, high school coaches, etc.) reduce ticket revenue. So we'll need to estimate how many comp tickets are given out for each game, and subtract that out of the revenue total.

And what about student tickets? Students don't pay for tickets per se, but they do pay an athletics fee, and that athletic fee money goes to the athletic department, to help compensate for student tickets and other items and expenses.

But wait, sometimes students pay for tickets, because a couple of years ago, VT introduced student season tickets, so students could pay a nominal fee and get reserved seats. And students buy guest tickets for friends and family.

And in some years, season tickets were discounted over single-game tickets, and in other years, they weren't.

So calculating ticket revenue sounds easy at first, but quickly gets muddied up. We'll have to make some assumptions and shortcuts so we don't get bogged down in the details.

Assumptions, Caveats, and Lazy Shortcuts

Given all the mitigating factors, we'll make the following assumptions, in order to simplify our calculations:

  • The number of "comp," or free tickets, distributed for each game will be estimated at 4,000. During the 2000 season, VT released information that indicated 4,450 comp tickets were reserved. That gives us an idea of the magnitude of comp tickets, and numbers for individual seasons could be higher or lower (Tech has dropped the number of comp. tickets it distributes significantly in recent years, we're told). We'll set the figure to 4,000 for every season from 1993-2001.
  • We won't attempt to calculate the revenue from student tickets versus general public game tickets. We'll assume that the athletic department gets compensated for the full value of a student ticket, meaning that if a game ticket costs $28 for the general public, the athletic department gets $28 for each free student ticket picked up. We realize this assumption is fundamentally flawed, but it simplifies our calculations drastically. We can now say that ticket revenue = (attendance - comp tickets) multiplied by ticket cost, without worrying about how student tickets affect revenue.
  • Revenue from student season ticket sales, which were introduced within the last couple of years, will not be estimated and will be ignored. Instead, we'll assume that the extra revenue helps out with making the previous bullet item more accurate.
  • Decreased revenue from kids' tickets will not be factored in. In some years, VT offers kids' tickets at reduced prices for some games, in order to increase attendance (for example, selling kids' tickets to a Temple game for just $10). This will be ignored, as the number of kids' tickets sold and how they affected revenue would complicate the calculations.
  • Season ticket buyers did not receive a discount over the cost of single-game tickets from 1993-1996, but they did in 1997 ($1 per game), 1998 and 1999 ($3 per game). These discounts will be factored into the revenue figures by multiplying the discount by the number of season tickets sold, and subtracting that from revenue for each game.
  • Season tickets sold out in 2000 and 2001, so single-game ticket prices used in calculations will be the same as season ticket prices. In 2000 and 2001, any unused opponent tickets were made available to the public at prices higher than VT season ticket prices, but these tickets will be ignored, and it will be assumed that all tickets sold were sold at VT season ticket prices.


Ticket Prices

Here are single-game and season ticket prices for Hokie home games from 1993-2001:

Season Single-Game
Ticket Price
Games Season
Ticket Prices
1993 $16
$20
Bowling Green
MD, Temp., Rut., ECU, Syr.
Same
Same
1994 $20
$22
Arkansas State
WVU, Temp., Pitt, Rut., UVa
Same
Same
1995 $20
$22
Cincinnati, Akron
BC, Miami, Syracuse
Same
Same
1996 $22 All games (7 home games) Same
1997 $22
$25
Ark. State, Mia (OH), BC, UAB
Syracuse, Miami
$21 each ($1 off)
$24 each ($1 off)
1998 $25
$27
Pitt, Temple, Rutgers
ECU, WVU, UVa
$22 each ($3 off)
$24 each ($3 off)
1999 $25
$27
JMU, UAB, BC
Clemson, Syracuse, Miami
$22 each ($3 off)
$24 each ($3 off)
2000 $28 all games (season ticket price) Same
2001 $28 all games (season ticket price) Same


Season Tickets Sold

The number of season tickets sold enters into the calculations, and plus, it's fun to see the numbers. Here they are:

Season Season Tickets Sold
1993 10,506
1994 12,280
1995 14,124
1996 16,087
1997 16,675
1998 18,433
1999 23,816
2000 29,440
2001 30,254


Attendance Figures

Of course, when calculating revenue, attendance for each game must be factored in, because ticket prices vary for different games. The detailed attendance data for each game is contained in the web page and spreadsheet linked at the end of this article, but we thought you might like to look at total attendance and average attendance for each season:

Season Total Home
Attendance
Games Per-Game
Attendance
1993 236,434 6 39,406
1994 278,299 6 46,383
1995 223,887 5 44,777
1996 320,022 7 45,717
1997 273,462 6 45,577
1998 294,267 6 49,045
1999 315,111 6 52,519
2000 337,632 6 56,272
2001 321,972 6 53,662

Notable attendance items:

  • VT sold out every home game from 1999-2001. The last home game the Hokies didn't sell out was Rutgers on 11/21/98, the next-to-last home game that year. 42,452 fans saw Tech beat the Scarlet Knights 47-7. That is also, not coincidentally, the last time VT had fewer than 50,000 fans for a home game.
  • The last time Tech had a crowd of less than 40,000 for a game was in 1997, when 37,411 fans saw Tech trounce UAB 37-0 (11/1/97).
  • In the last game of the 1993 season, 44,722 fans saw the Hokies defeat Syracuse 45-24, and that was the largest home crowd that season. Two games that season (Temple and Rutgers) drew barely over 40,000 fans, and the other three (Bowling Green, Maryland, and ECU) drew between 34,000 and 39,000 fans.
  • In 1993, season tickets represented just 26.7% of tickets (10,506 out of 39,406 average attendance). In 2001, that number was up to 56.4% of tickets (30,254 out of 53,662 average attendance).


Revenue Calculations

Now, let's dig into some revenue figures. Calculating revenue is simple, thanks to our "Assumptions, Caveats, and Lazy Shortcuts" above. You simply subtract 4,000 assumed comp. tickets from the game attendance and multiply that figure by the single-game ticket price. If it's a season in which season ticket holders received a discount, you have to subtract out the season ticket holders discount.

The formula is:

Game Revenue = [(Attendance - 4,000 comp. tickets) X (Ticket price)] - [(Season Tickets sold) X (Season ticket discount)]

So, for example, 47,681 fans attended the 1997 game against Boston College, paying $22 per ticket. That year, 16,675 season tickets were sold at a discount of $1 per game per ticket.

1997 BC Game Revenue = [(47,681-4,000) X ($22)] - (16,675 X $1)
= (43,681 X $22) - $16,675 = $944,307

Season Highs and Lows

Before we do total attendance and average per-game revenue, let's show the high and low revenue games for each season in the Beamer Bowl era.

High/Low

Opponent

Ticket
Price

Attendance

Season
Tix Discount

Revenue

1993 Low

BGSU

$16

37,732

$0

$539,712

1993 High

Syracuse

$20

44,722

$0

$814,440

1994 Low

Ark. State

$20

38,626

$0

$692,520

1994 High

WVU

$22

49,679

$0

$1,004,938

1995 Low

Cincinnati

$20

36,328

$0

$646,560

1995 High

Syracuse

$22

51,239

$0

$1,039,258

1996 Low

SW Lou.

$22

35,643

$0

$696,146

1996 High

UVa

$22

50,128

$0

$1,014,816

1997 Low

UAB

$22

37,411

$16,675

$718,367

1997 High

Miami

$25

53,177

$16,675

$1,212,750

1998 Low

Rutgers

$25

42,452

$55,299

$906,001

1998 High

UVa

$27

53,207

$55,299

$1,273,290

1999 Low

JMU, UAB

$25

51,907

$71,448

$1,126,227

1999 High

Syr., Miami

$27

53,130

$71,448

$1,255,062

2000 Low

All Games

$28

56,272

$0

$1,463,616

2000 High

All Games

$28

56,272

$0

$1,463,616

2001 Low

All Games

$28

53,662

$0

$1,390,536

2001 High

All Games

$28

53,662

$0

$1,390,536


Season and Per-Game Revenue

And now, the numbers you've all been waiting for, the total season revenue and per-game revenue.


Season

Home
Games

Total
Revenue

Per-Game
Revenue

1993

6

$4,113,752

$ 685,625

1994

6

$5,525,326

$ 920,888

1995

5

$4,347,482

$ 869,496

1996

7

$6,424,484

$ 917,783

1997

6

$5,674,056

$ 945,676

1998

6

$6,709,177

$1,118,196

1999

6

$7,141,421

$1,190,237

2000

6

$8,781,696

$1,463,616

2001

6

$8,343,216

$1,390,536

2002 (est.)

7

$12,902,603

$1,843,229

Note: 2002 estimate excludes Ark. State preseason game and is based on
stadium selling out for all home games, with capacity of 63,459, minus 4,000
comp. tickets, with tickets priced at $31 each.

Note that in this table, the Arkansas State preseason game is not included, because VT doesn't receive ticket revenue for that game. Ticket revenue is collected and forwarded to the game sponsor, who then distributes money to the two participating schools from ticket and TV revenue.

The impact of expanding the stadium to over 63,000 seats is shown clearly on that last line. With the extra seats and increased ticket prices, per-game revenue jumps by over $450,000, or 32.5 percent. Total revenue, thanks to an unusual seven home games (which the Hokies will also have in 2003), jumps by nearly $4.6 million, or 54.6 percent.

That extra dough will come in handy for funding other sports, not just football. Remember, Bonnie Henrickson recently talked Jim Weaver into increasing women's hoops funding by $78,000 per year, a mere 1.7 percent of that $4.6 million. (But please note that some of that extra ticket revenue will go towards servicing the debt incurred in building the South end zone expansion, so it's not as if VT will have that entire $4.6 million to throw around).

And compare 2002 to 1993, the beginning of the Beamer bowl era. Ticket revenue in 2002, thanks to more home games (7 versus 6), higher ticket prices ($31 versus $16-$20), and increased attendance (63,459 versus 39,406) will probably be at least triple what it was in 1993.

An extra $8-$9 million per year in ticket revenue will do amazing things for an athletic department and its programs. But as good as $12.9 million sounds, imagine if VT were a Big Ten or SEC school, selling out a 100,000+ seat stadium, at $35-$40 per ticket, raking in $3.5-$4.0 million per game, for 6-7 home games. That's anywhere from $21 million to $28 million per year in ticket revenue, which puts $12.9 million to shame.

This analysis doesn't take into account the "Annual seat gifts" required to purchase seats in the Zone Club ($750 per seat for 880 seats), Touchdown Terrace ($500 for 321 seats), and Goal Line Stands ($200 for 1,160 seats) sections of the South end zone. At the time this article was written, only the Touchdown Terrace seats were sold out, but If VT is able to sell out all of those seats, then that brings in an extra $1.05 million per year.

The Data

To download the data in HTML (web page) format, go here:

http://www.techsideline.com/tslextra/issue020/vtfootballticketrevenue.htm

To download an MS Excel 97 spreadsheet containing all of the data and formulas that I have used here, go here:

http://www.techsideline.com/tslextra/issue020/vtfootballticketrevenue.xls

 

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