MSU AD fiscal report from 2022

[Perd Hapley]

Perhaps Germans, but I found this article from a few weeks ago that sheds a good bit of light on profitability of the Big 4 sports. Thought it was interesting considering the many prior discussions of which sports make / lose money, and how much.

2022 resulted in the following profit / loss for each sport:

Football - profit of $10.8 million (not surprising)

Men’s Basketball - profit of $153,000
This one seemed pretty low. Maybe Howland’s buyout is dragging this down for a few years.

Baseball - loss of $1.7 million
This was the year after the natty, when ticket sales were at an all-time high. No buyouts being paid to coaches. Sorry to all the “baseball makes money” truthers out there, but it just ain’t so. At least not until all debt from the new DNF is paid off, at least.

Women’s Basketball - loss of $4.4 million
Again, not surprising. Hopefully will be mitigated some if Purcell continues to have success.

How Mississippi State athletics succeeded financially in 2022 despite record expenses

Despite a department record in reported expenses, Mississippi State athletics brought in more than it spent, per its 2022 NCAA financial report.

finance.yahoo.com

 

[8dog]

Perhaps Germans, but I found this article from a few weeks ago that sheds a good bit of light on profitability of the Big 4 sports. Thought it was interesting considering the many prior discussions of which sports make / lose money, and how much.

2022 resulted in the following profit / loss for each sport:

Football - profit of $10.8 million (not surprising)

Men’s Basketball - profit of $153,000
This one seemed pretty low. Maybe Howland’s buyout is dragging this down for a few years.

Baseball - loss of $1.7 million
This was the year after the natty, when ticket sales were at an all-time high. No buyouts being paid to coaches. Sorry to all the “baseball makes money” truthers out there, but it just ain’t so.

Women’s Basketball - loss of $4.4 million
Again, not surprising. Hopefully will be mitigated some if Purcell continues to have success.

How Mississippi State athletics succeeded financially in 2022 despite record expenses

Despite a department record in reported expenses, Mississippi State athletics brought in more than it spent, per its 2022 NCAA financial report.

finance.yahoo.com

It was reported on another board that baseball looks worse right now bc we are getting no seat licenses for the chairbacks. Once the ten years runs up we can close that gap and some.

 

[Perd Hapley]

It was reported on another board that baseball looks worse right now bc we are getting no seat licenses for the chairbacks. Once the ten years runs up we can close that gap and some.

What do you mean? Didn’t the chairback holders pay all that on the front end? That was the whole point of the big down payment for those who wanted season tickets.

 

[8dog]

What do you mean? Didn’t the chairback holders pay all that on the front end? That was the whole point of the big down payment for those who wanted season tickets.

Yes so I’d imagine it was all recognized as revenue back then. I don’t know that we ask them to pay anything annually during the ten years. But someone with chairbacks can clarify.

 

[onewoof]

guessing that baseball breaks even in 2025

 

[patdog]

Another major increase in spending came from fundraising, marketing and promotion. Mississippi State reported $5,466,578 in that category's expenses − an increase of nearly $3 million from last year. It's the highest figure MSU has ever spent in that area, beating the 2013 mark by about $700,000.

This is a huge step in the right direction.

 

[aTotal360]

I'm willing to bet a large part of the loss are unforeseen operating costs of the new stadium and potential lingering debt around the renovation. $1.7M is a rounding error nowadays.

My understanding is our baseball program is one of the VERY few that aren't a financial drain. Us and LSU usually break even.

 

[Perd Hapley]

Yes so I’d imagine it was all recognized as revenue back then. I don’t know that we ask them to pay anything annually during the ten years. But someone with chairbacks can clarify.

Yeah I guess it depends on if they spread that revenue over the 10 years or if they counted it all up front from an accounting standpoint.

Regardless, the seating commitments were only about $150 per seat per year. Even if that was doubled after the 10 years to $300 per seat per year (tall order), it would only be another $1.5 million per year or so, not enough to cover the full gap. I think the bigger chunk of change is paying out the construction bonds that were issued to borrow the vast majority of the $80 million. Only about $25 million was covered by donors (which includes the seating commitments). The rest was borrowed cash.

 

[8dog]

Yeah I guess it depends on if they spread that revenue over the 10 years or if they counted it all up front from an accounting standpoint.Regardless, the seating commitments were only about $150 per seat per year. Even if that was doubled after the 10 years to $300 per seat per year (tall order), it would only be another $1.5 million per year or so, not enough to cover the full gap. I think the bigger chunk of change is paying out the construction bonds that were issued to borrow the vast majority of the $80 million. Only about $25 million was covered by donors (which includes the seating commitments). The rest was borrowed cash.

They will be able to charge at least $500 per seat at a minumum. Id bet they can do $1000 and still sell out. At $500 that’s around 2.3 mill. They will be able to charge more for lounges too and Id bet Omaha club.

 

[The Peeper]

You gotta consider the source of that information too......

 

[Perd Hapley]

They will be able to charge at least $500 per seat at a minumum. Id bet they can do $1000 and still sell out. At $500 that’s around 2.3 mill. They will be able to charge more for lounges too and Id bet Omaha club.

$500 per seat total, including the ticket cost? Maybe. But if that’s just the donation requirement before buying tickets, no chance in hell. That’s more than lower level for football the last time I checked. You’d be talking $3,000 for a family of 4 to have season tickets for just one season. I think that’s a tougher sell than you realize. The $150 per year per seat in the current arrangement does not include the ticket cost.

 

[retire the banner]

It’s funny to watch people get so defensive about baseball not being a revenue generating sport. College baseball is niche, we just pour more money and resources into it compared to most NCAA programs.

 

[L4Dawg]

College Baseball does not make money, it never has really. It's a niche sport that has a smaller TV audience than softball does.

 

[8dog]

$500 per seat total, including the ticket cost? Maybe. But if that’s just the donation requirement before buying tickets, no chance in hell. That’s more than lower level for football the last time I checked. You’d be talking $3,000 for a family of 4 to have season tickets for just one season. I think that’s a tougher sell than you realize. The $150 per year per seat in the current arrangement does not include the ticket cost.

I guaranteed you we can sell 4700 tickets at $500 plus ticket cost. The supply/demand for that chairback is off the charts.

 

[Perd Hapley]

I'm willing to bet a large part of the loss are unforeseen operating costs of the new stadium and potential lingering debt around the renovation. $1.7M is a rounding error nowadays.

My understanding is our baseball program is one of the VERY few that aren't a financial drain. Us and LSU usually break even.

Not being a huge financial drain and actually being profitable are two different things. Baseball loses less money at MSU than it does at all but about 4-5 other schools in the country….max. And it loses less money than any other sport at MSU that loses money….which is everything besides football and MBB. But currently, it still loses money.

 

[Perd Hapley]

I guaranteed you we can sell 4700 tickets at $500 plus ticket cost. The supply/demand for that chairback is off the charts.

For perspective, if you have a normal family with 2 kids and want to come to a game, the ticket cost you are suggesting / proposing would cost an entire month’s pay in after tax income for a family making the median household income in MS. If we’re charging that much, even if you sold every seat you’d just turn the whole place into a country club and give the middle finger to a big portion of our fanbase. And I still don’t really think you could do it. Those that paid that much would do it at the expense of something else, like purchasing football or basketball tickets, so you wouldn’t get a net benefit to MSU as a whole.

 

[Seinfeld]

I’m just gonna say what a lot are thinking, but the fact that nearly half of our football profit is wiped out by a women’s sport with 13 players on it is just mind boggling

 

[8dog]

For perspective, if you have a normal family with 2 kids and want to come to a game, the ticket cost you are suggesting / proposing would cost an entire month’s pay in after tax income for a family making the median household income in MS. If we’re charging that much, even if you sold every seat you’d just turn the whole place into a country club and give the middle finger to a big portion of our fanbase. And I still don’t really think you could do it. Those that paid that much would do it at the expense of something else, like purchasing football or basketball tickets, so you wouldn’t get a net benefit to MSU as a whole.

The end goal and target audience isn’t your normal family- rightly or wrongly. Demand would easily handle $500 plus the ticket cost.

 

[The Peeper]

I just read that article. How did womens softball and baseball both spend "around $5 million" The baseball teams shows 41 on the roster, the softball team 25.

 

[Cantdoitsal]

Thank You Ron Polk. That's all the nice things I will say about him. He showed / proved it doesn't hafta be a money drain.

 

[msudawg12]

They will be able to charge at least $500 per seat at a minumum. Id bet they can do $1000 and still sell out. At $500 that’s around 2.3 mill. They will be able to charge more for lounges too and Id bet Omaha club.

This is what people arent realizing. We all paid a fix fee to retain our lifetime seating rights for 10 more years. That was a lower figure and was pretty close to the same for all lower level chairbacks. What will change is that after 10 years, it will be based on a typical seating chart and then reseated by Bulldog Club rank. This means that those prime seats behind home plate are going to go through the roof comparatively.

 

[PhredPhantom]

I guaranteed you we can sell 4700 tickets at $500 plus ticket cost. The supply/demand for that chairback is off the charts.

By saying that you “guaranteed we can sell 4700 tickets at $500 plus ticket cost”, that implies that if they *don’t* sell that many tickets at that price that you will pick up the slack. That’s what the word “guarantee” means. That’sa pretty strong statement. Are you really willing to stand behind you word?

 

[8dog]

By saying that you “guaranteed we can sell 4700 tickets at $500 plus ticket cost”, that implies that if they *don’t* sell that many tickets at that price that you will pick up the slack. That’s what the word “guarantee” means. That’sa pretty strong statement. Are you really willing to stand behind you word?

Let’s stay on task. But sure, I will buy all of them that are left which will be zero.

 

[Perd Hapley]

The end goal and target audience isn’t your normal family- rightly or wrongly. Demand would easily handle $500 plus the ticket cost.

But even most well-to-do families aren’t going to want to blow an entire paycheck or some fun money that could be used for them all to go on a European vacation on season tickets for college baseball. Its ludicrous.

If you want more evidence, we had less than 5,000 people who were willing to pay about 30% of what you’re suggesting per year when the new stadium was built. I’m not seeing the math that says all those same people and then some would pay 2.5 to 3 times as much now, only 7 years later…..while still also shelling out thousands for football and basketball tickets.

 

[paindonthurt]

Yes so I’d imagine it was all recognized as revenue back then. I don’t know that we ask them to pay anything annually during the ten years. But someone with chairbacks can clarify.

I only pay the price of the tickets currently.

 

[paindonthurt]

I guaranteed you we can sell 4700 tickets at $500 plus ticket cost. The supply/demand for that chairback is off the charts.

Someone bookmark this.

 

[Anon1664516582]

Yes so I’d imagine it was all recognized as revenue back then. I don’t know that we ask them to pay anything annually during the ten years. But someone with chairbacks can clarify.

Paid right at $800 for my two chairbacks.

 

[jethreauxdawg]

I just read that article. How did womens softball and baseball both spend "around $5 million" The baseball teams shows 41 on the roster, the softball team 25.

Female hygiene products ain’t cheap

 

[Leeshouldveflanked]

One thing about baseball since a lot of people bring coolers, you probably don’t get much in the way of concessions. One thing for sure, Baseball ticket prices need to be raised substantially.

 

[Xenomorph]

I just read that article. How did womens softball and baseball both spend "around $5 million" The baseball teams shows 41 on the roster, the softball team 25.

They both give roughly the same number of scholarships.. 11.7 vs 12.

 

[Mr. Cook]

College Baseball does not make money, it never has really. It's a niche sport that has a smaller TV audience than softball does.

Agree with this. MSU has been an exception more than the rule in this respect.

 

[The Cooterpoot]

The problem isn't just the "niche" sports. It's a total lacking of giving by our alumni as well. We're a bunch of poors in the giving arena. We straight up suck!

 

[Perd Hapley]

Paid right at $800 for my two chairbacks.

Not if you bought them at the seat commitment timing you didn’t. You would have had to put up $3000 just for the right to buy the tickets, then pay for the tickets themselves each season.

 

[Perd Hapley]

They both give roughly the same number of scholarships.. 11.7 vs 12.

You also have a 25-man roster limit on game days so those 16 additional players are not traveling, staying in hotels, eating team meals during those times, etc.

 

[The Peeper]

They both give roughly the same number of scholarships.. 11.7 vs 12.

But bigger jet needed, more meals, more hotel rooms, more supplies, more medical coverage, etc etc etc etc

 

[Anon1664516582]

Not if you bought them at the seat commitment timing you didn’t. You would have had to put up $3000 just for the right to buy the tickets, then pay for the tickets themselves each season

 

[Anon1664516582]

Excuse me. It was $697.00.

Your point is?

 

[Anon1664516582]

I’m just gonna say what a lot are thinking, but the fact that nearly half of our football profit is wiped out by a women’s sport with 13 players on it is just mind boggling

But we are fresh as hail!!

 

[Leeshouldveflanked]

The problem isn't just the "niche" sports. It's a total lacking of giving by our alumni as well. We're a bunch of poors in the giving arena. We straight up suck!

A lot of that had to do with the previous AD.

 

[Leeshouldveflanked]

The average baseball game is 3 hours. The ticket price needs to be around $15 per hour. Average about 30 home games per year. So average season ticket needs to be around $1300 per season ticket.