USM and the New Orleans Bowl - another money sink? - USM Forum -- Message Board

Date: Dec 7, 2005

USM and the New Orleans Bowl - another money sink?

Date: Dec 7, 2005

HA, 12/6/05

http://www.hattiesburgamerican.com/apps/pbcs.dll/article?AID=/20051206/SOUTHERNMISS/512060308/1050

Bowl benefits abound
Ticket sales, TV exposure help Eagles' bottom line

..."We've made from a quarter of a million (dollars) down to zero."

Southern Miss will receive $750,000 from the New Orleans bowl, but all of that money will go directly to Conference USA. The conference gives USM $300,000 for expenses. The university expects to have approximately a $400,000 expense budget.

So, any money the university makes comes from ticket sales. And Southern Miss only makes money off tickets sold through the university. Revenue from tickets bought at the gate and through ticket distributors, such as Ticketmaster, do not go to the university....

Date: Dec 7, 2005

info wrote:

HA, 12/6/05 http://www.hattiesburgamerican.com/apps/pbcs.dll/article?AID=/20051206/SOUTHERNMISS/512060308/1050 Bowl benefits abound Ticket sales, TV exposure help Eagles' bottom line ..."We've made from a quarter of a million (dollars) down to zero." Southern Miss will receive $750,000 from the New Orleans bowl, but all of that money will go directly to Conference USA. The conference gives USM $300,000 for expenses. The university expects to have approximately a $400,000 expense budget. So, any money the university makes comes from ticket sales. And Southern Miss only makes money off tickets sold through the university. Revenue from tickets bought at the gate and through ticket distributors, such as Ticketmaster, do not go to the university....

So lets see, CUSA funds + $300,000, Minus expenses, - $400,000, = -$100,000. If we get 10,000 fans @ $40/ticket = +$400,000, for a $100,000 profit. Is this what we are cheering about?

Date: Dec 7, 2005

Accountant wrote:

info wrote: HA, 12/6/05 http://www.hattiesburgamerican.com/apps/pbcs.dll/article?AID=/20051206/SOUTHERNMISS/512060308/1050 Bowl benefits abound Ticket sales, TV exposure help Eagles' bottom line ..."We've made from a quarter of a million (dollars) down to zero." Southern Miss will receive $750,000 from the New Orleans bowl, but all of that money will go directly to Conference USA. The conference gives USM $300,000 for expenses. The university expects to have approximately a $400,000 expense budget. So, any money the university makes comes from ticket sales. And Southern Miss only makes money off tickets sold through the university. Revenue from tickets bought at the gate and through ticket distributors, such as Ticketmaster, do not go to the university.... So lets see, CUSA funds + $300,000, Minus expenses, - $400,000, = -$100,000. If we get 10,000 fans @ $40/ticket = +$400,000, for a $100,000 profit. Is this what we are cheering about?

______________________________________________________________________

That should be $400K - $100K = $300K profit.

Date: Dec 7, 2005

Not Enron Accountant wrote:

That should be $400K - $100K = $300K profit.

Actually, USM should form a joint venture, place the expenses in the joint venture, then sell stock in the joint venture. USM would have $400K in revenue from sales, the $100K loss would be on the books of the JV and USM would show the asset in the JV. Maybe someone at the Foundation could help them out with this.

Date: Dec 7, 2005

I have been reading the Bayou Times and I am really excited about the game. Playing Arkansas is really going to be a challenge for USM. Houston Nutt always has his team fired up for a game.

I know there is one pretty big hotel down on the river in Lafayette. We had better get our reservations in early. All 400 rooms may be sold out. I think it will hold all the fans that we will be taking to the game. I hear that all USM students that go to the game will be exempt from their exams. This should help boost attendance.

The stadium is great and the gators have been moved out of the end zone and should not interfer with our running backs. Not that the running backs will ever be in the end zone.

Our official traveling party for the university will be hosted with a rajin-cajin crawfish boil at a morning brunch on the day of the game. So who cares whether we break even, lose money, or make a buck or two.

We all know the purpose of this university and we need to support our bowl effort. Next year, we may have to go to Pasadena, so enjoy a real treat while we can.

Date: Dec 7, 2005

Cajin Eagle wrote:

I have been reading the Bayou Times and I am really excited about the game. Playing Arkansas is really going to be a challenge for USM. Houston Nutt always has his team fired up for a game.

I know there is one pretty big hotel down on the river in Lafayette. We had better get our reservations in early. All 400 rooms may be sold out. I think it will hold all the fans that we will be taking to the game. I hear that all USM students that go to the game will be exempt from their exams. This should help boost attendance.

The stadium is great and the gators have been moved out of the end zone and should not interfer with our running backs. Not that the running backs will ever be in the end zone.

Our official traveling party for the university will be hosted with a rajin-cajin crawfish boil at a morning brunch on the day of the game. So who cares whether we break even, lose money, or make a buck or two.

We all know the purpose of this university and we need to support our bowl effort. Next year, we may have to go to Pasadena, so enjoy a real treat while we can.

Except that USM is playing Arkansas State, not Arkansas.

Date: Dec 7, 2005

Gaijin Eagle wrote:

Except that USM is playing Arkansas State, not Arkansas.

We slurp over the word "State" when we pronounce the name of the school. The "State" part of the name is unclear to the listener who hears it as "University of Arkansas." It's sort of like slurping over the word "Southern" when pronouncing the name "University of Southern Mississippi. It comes out as "University of Mississippi." That speech impediment tends to increase with the number of years spent in Hattiesburg.

Date: Dec 7, 2005

CajIn? RagIn? I doubt you're a native!

Btw, the hotel situation is very tight. Made my reservation Monday night and that hotel was already full by last night. The New Orleans Bowl webpage shows the hotel situation.
Don't forget, there are still Katrina evacuees in the hotels (as of the last I heard.)

Date: Dec 7, 2005

You teach where? wrote:

We slurp over the word "State" when we pronounce the name of the school. The "State" part of the name is unclear to the listener who hears it as "University of Arkansas." It's sort of like slurping over the word "Southern" when pronouncing the name "University of Southern Mississippi. It comes out as "University of Mississippi." That speech impediment tends to increase with the number of years spent in Hattiesburg.

You mean that "Harvard on Hardy" isn't correctly called "<inaudible> MISS?"

Date: Dec 7, 2005

LVN wrote:

CajIn? RagIn? I doubt you're a native!

Btw, the hotel situation is very tight. Made my reservation Monday night and that hotel was already full by last night. The New Orleans Bowl webpage shows the hotel situation.
Don't forget, there are still Katrina evacuees in the hotels (as of the last I heard.)

So USM fans could be helping put evacuees out of their hotel rooms?

FEMA pays a low, fixed rate per day, and hotels are hungry for their regular rates. This is happening in New Orleans as "Katrina victims" are turned out of hotels in favor of tourists and contractors.

USM goes to Lafayette, puts "Katrina victims" out of hotels. USM fans pay higher than FEMA rates. "Katrina victims" must go elsewhere and must purchase gasoline. plane tickets, bus tickets, or cab fare.

Sounds like a bunch of Economic Development to me.

Glad to know that USM football players will be displacing refugees while skipping finals.

Date: Dec 7, 2005

I don't know that people are being displaced, it's for one night. Why don't you check into that and let us know.

Date: Dec 7, 2005

Yes, please do that.

Date: Dec 7, 2005

RE: USM and the New Orleans Bowl - another money sink?

Date: Dec 7, 2005

Red Eye wrote:

If they were displaced it would and should make newspaper headlines ---- with front page photographs.

LVN, say 'cheese.'

Date: Dec 7, 2005

Cheese? I thought it was "mouse" -- no wonder my pictures are so bad!

(Sorry, that's old, I stole it.)

I checked my own hotel and there are plenty of rooms available the day before and the day after, so I doubt people are being displaced.

Date: Dec 7, 2005

LVN wrote:

I checked my own hotel and there are plenty of rooms available the day before and the day after

You checked the day before and the day after the game? You checked the wrong day.

Date: Dec 7, 2005

I thought that they wouldn't boot people out for only one day, and if there were plenty of rooms both before and after, then the hotels may not be full of evacuees. But on reflection, I don't think that my idea proved anything. Then I looked for some news articles about possible effects of the Bowl on evacuees and didn't find anything (rather cursory search, though.)

Date: Dec 21, 2005

already gone wrote:

While the Athletic Department is happy about USM going to another bowl, the question for me is, just how much of the $750,000 New Orleans "guarantee" will actually go to Hattiesburg? Or, will it be another case of football losing money in a post-season bowl?

I'm sure the "Eagle Fever" contingent are delirious about last night's win over Arkansas State, but deep in the wire services report was some important information NOT found in the Hattiesburg American's story:

"The attendance was 18,338. Last year's game drew 27,253 in the Superdome."

With this attendence, I suspect that USM has LOST money on yet another post-season bowl. With a 6-5 regular-season record, and an inability to bring in enough fans fill the 31,000-seat Cajundome, the university is destined to be a "third-tier" sports competitor.

Date: Dec 21, 2005

oldtimer wrote:

already gone wrote: While the Athletic Department is happy about USM going to another bowl, the question for me is, just how much of the $750,000 New Orleans "guarantee" will actually go to Hattiesburg? Or, will it be another case of football losing money in a post-season bowl? I'm sure the "Eagle Fever" contingent are delirious about last night's win over Arkansas State, but deep in the wire services report was some important information NOT found in the Hattiesburg American's story: "The attendance was 18,338. Last year's game drew 27,253 in the Superdome." With this attendence, I suspect that USM has LOST money on yet another post-season bowl. With a 6-5 regular-season record, and an inability to bring in enough fans fill the 31,000-seat Cajundome, the university is destined to be a "third-tier" sports competitor.

Pathetic. It was an embarassment--no reflection on our fine young men on the team. Beating Arkansas State is a minor accomplishment. The fact that we played to poorly against a team of their standing bodes ill for the future. By the time they pay off all the bonuses to the coaches there won't be any money made and by the time they pay Tiny's expenses for all his party to go they will likely be in the hole.

Date: Dec 21, 2005

Is the $7 million that USM sunk into athletics a recurring number or a one-time deal? How about the $10 million to the Commercial Innovation Park? The $7 Million to the Trent Lott Center? Heck, millions here, millions there, pretty soon it's going to sound like real money.

Date: Dec 21, 2005

Sorry, we broke even on the bowl ...

Date: Dec 21, 2005

RE: USM and the New Orleans Bowl - another money sink?

Date: Dec 21, 2005

As a first-time bowl attender, I heard several discussions of attendance. Let's remember that this game was much farther away, requiring a couple of hours extra each way and thus required a hotel stay, was on a weekday which is a workday for most people, and was in the middle of finals week. Plus, Lafayette just isn't New Orleans. I think fairness demands those factors be considered.

Date: Dec 21, 2005

You are somewhat misinformed. The payout of $750,000 from the bowl goes straight to the conference. They reimburse the participating team for $300,000 and keep the rest to be distributed among all conference members (I'm sure the league office gets a cut too). In order to meet our expenses, we had to sell around 4,000 tickets, which we did. So, we weren't "bailed out" by the conference. Also, every C-USA team that was bowl eligible was picked for a bowl. In addition, 4,000 tickets sold for the New Orelans bowl which was played in Lafayette after a disappointing season is pretty good in my book.

oldtimer wrote:

Info, I understand your "half-full glass" perspective, instead of the "half-empty" view, but if you read this article carefully, USM did LOSE money on this bowl, and had to get "bailed out" by the conference. You could call it semantics, but reading: "USM received $300,000 from Conference USA to help cover expenses" tells me that the New Orleans Bowl was a money-loser. If the university could sell only "about 4,000 tickets", it speaks to the argument that we aren't a "first-tier" athletic program, and not likely to ever be invited to any post-season bowl game above the NCAA-minimum guarantee. "World-class" athletics can fill half a stadium, even with a 6-5 season. That's why you'll see "marginal record" teams from better conferences chosen ahead of 9-2 Conference USA teams, because they sell game tickets, airline reservations, and fill hotel rooms.