I know much of this is based upon projected TV Revenue and Marketing/brand Revenue. But Where do We reach the point where all this Revenue is committed and they need more to support the system. As we know, when it comes to Wage and Benefit negotiations it is more likely that You have increases in Benefits or Status Quo than reductions.
I guess my question is this. Where is Your breaking point? If a Minimum Season Ticket Price becomes $1,500 per ticket and You are being charged $10 for a hot dog and $12 for a Drink, do You continue to go in person, or do You step back and watch everything on TV. Or where do You decide that if they start NFL type pricing and gouging You might as well get Colts Season Tickets and watch games in a Weather protected Venue?
Would appreciate some thoughts.
At some point, the focus will naturally turn to the expense line. In intercollegiate athletics, that will put pressure on both the number of scholarships in revenue sports (especially football) as well as a reduction in the number of non-revenue generating programs (where there is already financial pressure). Revenue sharing will dwarf NIL in magnitude and will bring support from several interested parties. As the revenues climbed, this was inevitable, though very few of us have been talking about it, since the focus was on the non-sharing NIL issue. It will also further the discussion among some schools that they “earn” a lower share of the revenue than they generate, and that’s going to become a larger issue.
As for breaking points, I think it’s going to be increasingly difficult to field a sub-standard program and expect people to keep paying for tickets, parking, concessions, etc. This is especially true if the off field product is no better than what’s on the field. Schools are going to have to fully commit or they’ll continue to bleed fans and the revenue that comes with them. That will simply drive the revenue generators to demand a more equitable share of the revenue distribution.
didn't read the OP's linked article, but players can "demand" things all they want, getting them can be a different story.
that said, IU and other schools have been milking the loyal base for all they can, for decades.
i don't see any of this affecting in person ticket or parking or concessions any more than things have in the past.
the price-demand curve still exists for in person costs.
tv revenues though have been totally insulated by the FCC and FTC from virtually all normal market price-demand effects.
point being, fans have the ability to quit going to games or buying concessions if priced out, as many already have over the yrs.
what they basically don't have, is the choice to quit Fox Sports/BTN, Disney/ESPN/ABC, NBC, CBS, Turner/TNT, ect, if the price gets more than they feel is worth it.
as i've said before, the tv revenue side might as well be based in a mandatory tax type set up, where Joe Consumer has literally no ability to opt out even if he wants to, no matter how much the networks gouge him, and no matter how little interest he has or doesn't have in college or pro sports..
what business wouldn't love to operate in a climate where they have quasi monopoly status to begin with, and even better, where their revenue base is basically forced to buy their product every month whether they want to or not, regardless of how over priced they think it is, or how little interest they have in it.
i would say there should be a law against this, but there already are laws.
they just aren't enforced, due to the beyond wonderful legality of money being able to buy govt, politicians, and regulators, coupled with the reality of some of the media and their distribution apparatus, now essentially being the public relations arms of the DNC and RNC.
don't shoot the messenger.
zero exaggerations here for dramatic effect. all i laid out is absolutely as it is.
www.cbssports.com
