Most Athletic Department Debt

[Spaztecs]

On 5/27/2024 at 12:26 PM, Slapdad said:

CSU reported a $28.2M athletics deficit in 2022 and haven't had much success with their expensive FB coach hires....I'd say CSU isn't in great shape, financially speaking. And even though RSF gave the facepalm reaction to Dealwit's post, his post isn't untrue. The money put into stadiums hasn't translated to higher attendance and more money to this point. 

 

Some stadia, just needed to go.

Both Qualcomm and Hughes were a Mayhem away from disaster.

 

 

[Spaztecs]

On 5/28/2024 at 10:19 PM, ---I GREEN INFECTION I--- said:

 

It’s because we have the two best stadiums in the conf without a Landlord.

 

 

"It was a joke, son "

[Wyobraska]

On 5/28/2024 at 7:55 AM, Slapdad said:

There are options between building a $220M/$310M stadium and not having one. Houston built their stadium for $128M three years earlier while Tulane and S. Alabama built theirs for about $75M three years earlier as well. Time will tell if it was worth it or not for CSU, but a lot of debt combined with athletic departments that are underperforming, financially speaking, isn't a  great combination, as former CSU AD Joe Parker can attest. 

While each school could have spent less, I think it is unfair to compare building a stadium in Alabama vs California price wise.  

[Slapdad]

On 5/29/2024 at 10:47 AM, Wyobraska said:

While each school could have spent less, I think it is unfair to compare building a stadium in Alabama vs California price wise.  

Commercial building costs are higher in So Cal, but the difference is not 250% more and Colorado is closer to Houston than it is SoCal as far as building costs. But yes, the schools could have spent less. I get it, they were trying to position themselves for catching on with a P5 conference, but the risk was that they end up being left out in the cold AND with a ton of debt. If they can start renting out the venues and make up some of the difference, then that's great, but  how many big acts that could fill a 40K stadium would go to Fort Collins? San Diego I can see being a better option. 

[Slapdad]

On 5/28/2024 at 5:34 PM, Headbutt said:

Perhaps that was a big part of the problem.  JP was great at counting beans but couldn't market Dr. Pepper at an SEC game.  We'll see how the new guy does at "generating" revenue as opposed to whining about it.  Canvas was intended to host much more than FB.  JP leaves and all of a sudden we're gonna' have concerts.  Go figure.

BTW, I wouldn't trust an athletic department balance sheet if my life depended on it.  Those numbers are very malleable.

Which numbers, exactly, are you implying are not accurately stated on the balance sheet (and in the audit)? 

[Beaver-Poke]

On 5/29/2024 at 1:13 PM, Slapdad said:

Commercial building costs are higher in So Cal, but the difference is not 250% more and Colorado is closer to Houston than it is SoCal as far as building costs. But yes, the schools could have spent less. I get it, they were trying to position themselves for catching on with a P5 conference, but the risk was that they end up being left out in the cold AND with a ton of debt. If they can start renting out the venues and make up some of the difference, then that's great, but  how many big acts that could fill a 40K stadium would go to Fort Collins? San Diego I can see being a better option. 

I don't think you have to earthquake-proof a stadium in Alabama like you do in California and like you do for one that lies right on the faultline, like Memorial Stadium. Adds tremendously to the cost. 

[agswin]

It might be interesting to put together some sort of MWC FB and BB Facility Value Ranking that considers:

- Overall Debt on the facility

- Current Equity/Value if the facility

- Time (how many years to pay off bonds)

- Capacity

- Utilization (% of capacity)

 

[---I GREEN INFECTION I---]

On 5/24/2024 at 9:02 PM, Spaztecs said:

Daaaamn.

CSU and SDSU throwing cash around like they're a P4.

 

On 5/28/2024 at 8:19 PM, ---I GREEN INFECTION I--- said:

It’s because we have the two best stadiums in the conf without a Landlord.

 

On 5/29/2024 at 7:23 AM, Spaztecs said:

"It was a joke, son "

 

Could have fooled me.

PRO TIP:  “Joke(s)” are funny.

 

[Spaztecs]

On 5/29/2024 at 2:13 PM, Slapdad said:

Commercial building costs are higher in So Cal, but the difference is not 250% more and Colorado is closer to Houston than it is SoCal as far as building costs. But yes, the schools could have spent less. I get it, they were trying to position themselves for catching on with a P5 conference, but the risk was that they end up being left out in the cold AND with a ton of debt. If they can start renting out the venues and make up some of the difference, then that's great, but  how many big acts that could fill a 40K stadium would go to Fort Collins? San Diego I can see being a better option. 

 

If a venue provider can provide the requisite fees to attract a big name, then they will go to FoCo. I have seen numerous big name acts in not so famous venues or towns.

 

[Slapdad]

On 5/30/2024 at 9:29 AM, Spaztecs said:

 

If a venue provider can provide the requisite fees to attract a big name, then they will go to FoCo. I have seen numerous big name acts in not so famous venues or towns.

 

Look at the tour stops for all the big name artists on tour this summer and see how many are in metro areas under 500K and at college football stadiums...very few, if any these days. For one, artists booking larger shows prefer to book in venues that are enclose or the roof can be closed to avoid losing money when they have to cancel due to weather. And even though venues pay a flat fee to bigger name artists more often than there being a split in ticket sales, the number of tickets sold has to make sense for the venue to make a profit and for the band to make more in merch sales. Very few big bands that can fill a 40k stadium (probably 30K or less in a concert configuration) will opt to go to Ft. Collins when Denver is 60 miles away. Not to mention the fact that most promoters already have deals in place with larger venues. If CSU can attract big name bands, then more power to them, but I think it's pretty unlikely. That's not to say that they can't rent it out for smaller events and make some money, but I doubt larger concerts will happen there. 

[AztecSU]

On 5/29/2024 at 4:55 PM, agswin said:

It might be interesting to put together some sort of MWC FB and BB Facility Value Ranking that considers:

- Overall Debt on the facility

- Current Equity/Value if the facility

- Time (how many years to pay off bonds)

- Capacity

- Utilization (% of capacity)

 

Or, lets look at gross and net income generated by the facility 

[Spaztecs]

On 5/30/2024 at 9:09 AM, Slapdad said:

Look at the tour stops for all the big name artists on tour this summer and see how many are in metro areas under 500K and at college football stadiums...very few, if any these days. For one, artists booking larger shows prefer to book in venues that are enclose or the roof can be closed to avoid losing money when they have to cancel due to weather. And even though venues pay a flat fee to bigger name artists more often than there being a split in ticket sales, the number of tickets sold has to make sense for the venue to make a profit and for the band to make more in merch sales. Very few big bands that can fill a 40k stadium (probably 30K or less in a concert configuration) will opt to go to Ft. Collins when Denver is 60 miles away. Not to mention the fact that most promoters already have deals in place with larger venues. If CSU can attract big name bands, then more power to them, but I think it's pretty unlikely. That's not to say that they can't rent it out for smaller events and make some money, but I doubt larger concerts will happen there. 

Hey Rice -Eccles attracted the Rolling Stones and it only had 35,000 seats back then.

 

 

[Slapdad]

On 5/31/2024 at 11:45 AM, Spaztecs said:

Hey Rice -Eccles attracted the Rolling Stones and it only had 35,000 seats back then.

 

 

What year was that? Times have changed in the concert business. Shows that used to hit mid-sized markets are now skipping them. COVID and the change in revenue mix between touring and record sales from days gone by has changed the business of touring.