Transcript Financial Impact of Alcohol Sales on College Football Game Days

Financial Impact of Alcohol Sales
on College Football Game Days
Hannah Johnson
Jeremy Tisdale
Matt Cox
College Football Stadiums
Where Alcohol is sold on campus
to the general public
Introduction
• 21 out of 120 Football Bowl Subdivision
schools sell beer to the public at their
stadiums, according to research by
SportsBusiness Journal.
• Newest Schools are North Texas, SMU and
Troy University
Problem Overview
• Universities are looking for ways to generate
revenue and increase fan experience.
• By having alcohol sales school are at risk for
1. Fan Control
a.
Aramark and Giant's Fan
2. Poor Game Management
3. Underage Drinking
Generating Sales
• University of Minnesota decided not to have beer sales an estimated
lose of $1million dollars.
• West Virginia estimated it could generate $500,000 to $1.2 million.
– For the Mountaineers’ first home football game, played on Sunday
afternoon over Labor Day weekend, Sodexo reported gross beer
sales of $160,656 ($75,781 of that went to the athletic
department)
– Beer sales have produced no less than $516,000 each of the past
three years for West Virginia, and campus police report that
alcohol-related incidents at Mountaineer Field have declined
sharply
• Nevada football games generate $350,000 in beer sales annually
SWOT
• Strengthens
• Increased Revenue
From Concession Sales
• Increased Attendance
• Favorable Demographic
• Discourages Binge
Drinking
• Weakness
• Image of School
• Increased Propensity for
violence among
inebriated fans
• Increased Potential for
binge drinking
• Increased percentage of
alcohol related
violations on game day
SWOT
• Opportunities
• Special offers such as
alcohol only available in
premium seats resulting in
high ticket prices for such
seats
• New sponsors
• More Interest in Suite Sales
• Donation of Percentage of
profits
• Competition between
brands could keep prices
low
• Threats
• Loss of booster support
• Propensity for underage
drinking
• Negative exposure to antialcohol groups such as
M.A.D.D
• Increased risk of underage
drinking
• Time restrictions of alcohols
sales causing fans to leave
early or not come at all
Solutions
1. No Sales of Alcohol
– Binge drinking will continue to happen outside
the stadiums and underage drinking cannot be
controlled
2. Sale alcohol only in the premium seating
– charge higher ticket pricing and for alcoholic
drinks
– controls the distribution and help monitor
underage drinking
Solutions
3. Open alcohol sales to the general public
– Difficult to control underage drinking
•
Show id and receive a wristband
– Control on binge drinking
•
limited to buying two beers at a time
– Greater Liabilities for fan’s behavior
– Risk of poor game management
•
sales are cut off at halftime or in the third quarter
Recommendation
• Study the numbers
• Reach out to other schools
• Brainstorm new ideas to generate revenue
(Think Tank)
Recommendation
• Sale on the premium levels.
– Generates Sales for tickets for premium level
– Generate Sales from alcohol sales
– Sponsorship Opportunities
– Controlled Distribution
– Limited Liability