Isn’t the college sports budget pretty much finite with respect to football? Is he going to sell more tickets? Perhaps the ticket prices could rise? If you say on average he is going to make $5mil per year more than what they would have paid whoever, how are they going to make that unless the TV contract goes up?
And it might when Oklahoma and Texas arrive.
Legitimately asking for you or anyone to explain how they could increase revenue enough to cover the extra price tag.
(Majored in engineering….not business)
I think the impact a really good coach, that’s winning and creating a buzz, has on a university and its community is immeasurable. I think Leach and Kiffin are literally driving tens of millions in economic impact in Starkville and Oxford right now. I’m no expert but here’s a few thoughts I have as to why:
- study after study shows a direct correlation to increases in enrollment when the college football program is winning. That is huge. It’s obviously more students and tuition, who become alumni and possibly support the university for life. But they also live in the town 2-5 years and pay rent and spend money, etc.
- athletic donations go up dramatically when the team is winning; particularly from the big money people who get sucked up into the excitement and want to be close to this thing that’s creating so much buzz and positive excitement and is getting national attention. I’d about guarantee that the vast majority of these big salaries have been guaranteed by big money boosters, privately, who are frustrated with losing and/or where they’re at. I mean it’s how Ole Miss wound up with Kiffin. The piss and Miss embarrassed the big money so much they paid Luke’s buyout that day. He was sent out recruiting and then get fired.. it was obvious.
The media around LSU and Florida both have stated in last couple weeks that the message they got out of the Athletic Dept’s was that it wasn’t about spending big to win. It’s that the simply cannot afford to continue to lose. It’s catastrophic.
- then you start factoring in the local economic impact and it’s gigantic.. you start talking about 100K people in Starkville and Oxford on big game weekends. And you have a lot more big games when you’re good. Those communities not only survive off of the football games, but when the teams are good and exciting they THRIVE. And that money flows back big time. Heck, the Texas A&M weekend, the COVER CHARGE to get in The Library was $160 and it was lined around the block. It’s ridiculous, yes, but hell people paid it. They get caught up in the excitement. They book $500 hotels. They order extra drinks. They but extra shirts at the local stores. They order the appetizers for the table.
- and I know in Oxford - and I’d assume it’s the same in Starkville and other college towns - that the price of real estate skyrockets when the program is good or on an upward trajectory. Real estate prices went up like 30-40% during Eli’s time at Ole Miss.
I’ve heard 3 separate people, not affiliated, that cover Ole Miss (one was Yancy, in full transparency and honesty) say that local business owners have estimated that Arch Manning signing with Ole Miss would have a billion dollar (with a B) impact on the Oxford area across his 4 years. That seems extreme to me, I’ll admit, but I can see how it would have a monster impact. In the same way that if Dak Jr. is the #1 QB in his class in 18-19 years and signs with MSU.
- and of course when you have a packed stadium and excitement, ticket prices go up, concessions go up, beer sales, merchandise, parking.. on and on and on.
You get the point, but the gist is, football drives a LOT of things around it’s respective universities. And with the SEC TV money coming in, and the price of winning going up, nobody wants to be left behind over a couple million dollars. I mean look at where Vandy is at right now… it feels almost helpless. They won 9 games 3 years in a row, not that long ago. MSU just fired a coach with back to back bowl seasons who won both Egg Bowl’s. The fear of losing is EXPENSIVE right now.